Bloomberg Law Interviews Steve Golden on the Rise of Canadian Restructuring Solutions in U.S. Courts

Steve Golden was recently featured in Bloomberg Law’s article “Canadian Restructuring Strategy Gains Traction in US Courts,” which examines the increasing use of Canadian reverse vesting orders, or RVOs, in cross-border restructurings. The article explores why Canada has become an attractive venue for multinational distressed businesses whose licenses, permits, regulatory approvals, tax benefits, or government contracts may complicate a conventional asset sale.

Under an RVO structure, certain assets can remain with the operating company while unwanted liabilities are transferred to a separate, court-supervised residual entity. The approach can be particularly valuable in highly regulated industries, where a traditional sale may threaten the transferability or continued viability of essential licenses and approvals.

Bloomberg Law highlights the Canadian restructuring of Iovate Health Sciences International Inc., an Ontario-based nutrition and weight-management company, as a significant example. Steve and PSZJ serve as bankruptcy counsel to the foreign representative in Iovate’s chapter 15 proceedings, in which Judge Martin Glenn of the US Bankruptcy Court for the Southern District of New York recognized the Canadian restructuring and issued a written opinion addressing the developing trend.

Steve explains that the written decision has helped elevate discussion of RVOs among US restructuring professionals. “Since there was a written opinion, people are talking about it more. Maybe it’s going to get more into the Chapter 11 practitioner’s consciousness,” he says.

The article emphasizes Canadian restructuring proceedings that may offer a practical alternative in certain complex cases, particularly in sectors subject to extensive regulation. As Steve observes, “I don’t think regulators are less active in Canada, but they certainly can be very active in the US.”