What is CFFI Ventures’ creditor-led AcquireCo plan?

CFFI proposes to transfer assets into a lender-owned entity called AcquireCo. Creditors could swap claims for equity and oversee operations. The court and creditors must approve the plan. If sanctioned, control shifts from sponsors to lenders, with stricter budgets, reporting, and potential asset sales to improve cash flow and eventual recoveries.

What does the Brendan Paddick lawsuit seek?

The Brendan Paddick lawsuit claims about $22.8 million plus 20% interest tied to past business dealings. If the court accepts the claim and interest terms, the liability could grow over time. Classification, such as secured or unsecured, will affect priority and potential recoveries during the CFFI Ventures restructuring.

How could the April court ruling affect recoveries?

The April decision will set the path for creditor voting, plan sanction, and closing. Approval could speed a transfer to AcquireCo and clarify distributions. Any appeals or plan changes could delay timelines. Recovery levels will depend on collateral value, operating cash, and the handling of contested claims like the Paddick action.

What should Canadian investors monitor next?

Monitor creditor support, any revised plan terms, liquidity updates, and leadership changes at AcquireCo. Look for asset sale announcements and clearer operating targets. Also track the treatment of the Brendan Paddick lawsuit, since claim size and priority can shift recoveries for others. Official court filings will provide the most reliable guidance.

Law and Government

February 19: John Risley’s CFFI Creditor Takeover Plan, $22M Suit

ByDanny Kontos February 20, 2026February 20, 2026

John Risley is at the centre of a high-stakes restructuring in Nova Scotia. CFFI Ventures filed a court plan to shift assets to a creditor-owned AcquireCo while carrying more than US$776 million in debt. At the same time, a former associate launched a lawsuit for about $22.8 million plus 20% interest. An April ruling could reshape ownership, creditor recoveries, and timelines. We explain what this means for Canadian investors and Atlantic Canada stakeholders tracking the CFFI Ventures restructuring.