A significant development is unfolding in the financial sector as North Mill Equipment Finance, a US-based company, prepares to acquire Pawnee Leasing Corporation and its affiliate, Tandem Finance. According to court documents cited by Monitordaily, this acquisition represents a pivotal step in the restructuring of Chesswood Group, the parent company of Pawnee Leasing. The transaction, structured as a reverse vesting deal, requires approval from both the Ontario Superior Court of Justice and a US Bankruptcy Court under Chapter 15 proceedings. Decisions on these approvals are expected in early March and later in the same month, respectively.
The acquisition aligns with Chesswood Group's efforts to address financial challenges that emerged in October 2024. These difficulties included liquidity issues and defaults on credit agreements, prompting the initiation of restructuring under the Companies' Creditors Arrangement Act (CCAA). Pawnee Leasing specializes in small-ticket equipment leasing for businesses across different credit profiles, while Tandem Finance has recently merged into Pawnee’s operations, ceasing new originations. North Mill emerged as the top bidder after a competitive sale process, highlighting the strategic importance of this acquisition. Upon completion, North Mill will gain full ownership of both companies, with the proceeds from the sale designated to repay Chesswood’s debtor-in-possession financing obligations.
The restructuring initiative underscores the resilience and adaptability required in today's business environment. By acquiring Pawnee Leasing and Tandem Finance, North Mill positions itself to expand its market presence and enhance its service offerings. This move not only addresses immediate financial concerns but also sets a positive example for proactive corporate restructuring. It demonstrates the potential for organizations to navigate through challenging times and emerge stronger, fostering a culture of innovation and growth within the industry.