MOSAIC GROUP BEGINS RESTRUCTURING
By Adnews Staff
Toronto-based Mosaic Group has begun a restructuring of its debt obligations and capital structure. According to the marketing company, it is seeking court orders to move ahead with the voluntary restructuring under the Creditors Arrangement Act in Canada. In the U.S., certain Mosaic subsidiaries will file voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the bankruptcy court of the northern district of Texas. Mosaic Data Solutions and Mosaic InfoForce are not beginning bankruptcy proceedings. According to Mosaic, if the court orders in Canada are granted and once the Chapter 11 proceedings of the U.S. subsidiaries begin, the company anticipates being provided with the time and legal protection needed to formulate a restructuring plan with its creditors. Also, Hap Stephen has been appointed chief restructuring officer for Mosaic Group. He will direct the restructuring process and recommend operational changes. Earlier this week Mosaic announced it had missed two interest payments totaling $5.4 million.