JMX Group

Industry: Construction

Areas of Focus:

Companies’ Creditors Arrangement Act (CCAA)
Construction Industry Restructuring
Reverse Vesting Orders (RVOs)
Distressed Acquisitions
Sale and Investment Solicitation Processes (SISP)
Refinancing and Liquidity Strategy

Legal Team:

JMX Group, a national demolition and environmental remediation enterprise, faced a critical liquidity crisis triggered by payment disputes tied to two major projects.

As holdbacks and progress payments became trapped, the company’s cash flow deteriorated, placing pressure on operations, workforce retention, and lender relationships. The resulting default with its senior lender created an immediate threat of insolvency and raised the risk of significant disruption across active projects.

Challenge

JMX Group faced a severe short-term liquidity crisis caused by delayed project payments and disputed receivables.

• Cash flow was effectively paralyzed

• Secured lender obligations fell into default

• Insolvency proceedings became imminent

• Ongoing projects and workforce retention were placed at risk

• Counterparties and trades faced uncertainty across active construction engagements

Without immediate legal protection and access to liquidity, the company risked enforcement action by creditors and an operational shutdown that would erode enterprise value.

At the same time, the company needed a restructuring solution capable of preserving the operational business while separating it from the legal liabilities and litigation pressures.

Method

RECON utilized the Companies’ Creditors Arrangement Act (CCAA) to stabilize the business and create the runway necessary to execute a broader restructuring strategy.

The approach focused on preserving operations while restructuring the company’s financial position and ownership structure.

RECON:

• secured a stay of proceedings under the CCAA, preventing immediate enforcement action by creditors;

• developed a refinancing strategy that satisfied secured lender obligations and restored operational liquidity;

• worked closely with the company and the Court-appointed Monitor throughout the restructuring process;

• implemented a Sale and Investment Solicitation Process (SISP) to evaluate restructuring and transaction opportunities; and

• structured and completed the transaction through a reverse vesting order (RVO).

The SISP resulted in the sale of the company to the majority shareholder group, preserving ownership within a group that possessed both the financial capacity and operational expertise required to continue operating the business post-restructuring.

The reverse vesting structure allowed RECON to separate the operating business from legacy liabilities and ongoing litigation proceedings while preserving the core enterprise.

Result

RECON successfully guided JMX Group through the CCAA process and completed a restructuring transaction that preserved the business, workforce, and kept operations moving.

The outcome:

• prevented immediate creditor enforcement and insolvency-related disruption;

• restored liquidity required to maintain operations during restructuring;

• preserved ongoing projects, employees, and customer relationships;

• minimized disruption for project partners and trades;

• preserved ownership within the core shareholder group;

• protected the company’s market position through a reverse vesting transaction; and

• avoided the value destruction associated with a traditional liquidation process.

By separating operational assets from legacy liabilities and litigation exposure, the restructuring preserved enterprise value and allowed the company to continue operating with stability following the CCAA process.