What is the headline number for John Risley CFFI debt?

Court filings indicate CFFI Ventures owes more than US$776 million. That figure frames negotiations with senior lenders and shapes expected recoveries for junior creditors and equity. Investors should track any updates to the debt schedule, including maturities, security interests, and intercompany balances that could change waterfall outcomes.

What does the CFFI recapitalization aim to do?

The proposed CFFI recapitalization would reduce leverage by moving selected assets to new ownership and restructuring obligations. It seeks to protect operating continuity and improve senior lender recovery. Key variables include which assets transfer, any consent requirements, and how the plan treats unsecured claims during and after closing.

How does the Brendan Paddick lawsuit affect investors?

The $22 million claim adds legal uncertainty that can delay closing, raise costs, and cut into recoveries. Lenders may require reserves, tighter covenants, and extra reporting until the dispute is settled. Investors should model downside cases that include litigation expenses and potential impacts on cash flow and collateral coverage.

What lessons does this case offer for Canadian private credit deals?

It highlights the value of strict covenants, enforceable security, and transparency on affiliate transactions. Investors should ask for clearer reporting, tighter leverage limits, and remedies like cash dominion. The case also underscores the need to price regional project risks, especially in early-stage energy infrastructure across Atlantic Canada.

Global Market Insights

February 20: John Risley’s CFFI Owes $776M; Recap Plan, $22M Suit

ByDanny Kontos February 20, 2026February 20, 2026

John Risley CFFI debt has become a headline risk for Canadian investors. Court filings indicate CFFI Ventures owes more than US$776 million and is advancing a recapitalization that would move key assets to new ownership while it contests a $22 million claim from Brendan Paddick. For Canada’s private credit market, this raises questions about covenants, collateral, and the value of Atlantic Canada energy and infrastructure assets. We break down what the filings imply, how the legal fight could change recoveries, and what to watch if you fund private deals today.