Valeo Pharma Inc. (TSX) and associated Québec-based pharmaceutical companies obtained CCAA protection on October 1, 2024. Valeo, focused on commercializing generic drugs and hospital products in Canada, faced financial distress due to a highly leveraged balance sheet, with debt surpassing equity. The companies reported liabilities totaling $95.2 million, including US$24.5 million owed to secured lender Sagard Healthcare Partners and $24 million in unsecured debentures, with $10.4 million held by Investissement Québec. Despite a strategic review in December 2023, no transaction could close in time to address liquidity challenges. The CCAA proceedings aim to preserve Valeo's going concern value by relaunching a Sale and Investment Solicitation Process (SISP). Sagard is providing a Debtor-in-Possession (DIP) loan to support the proceedings. Ernst & Young (EY) was appointed as the monitor. Legal advisors include McMillan for Valeo, McCarthy Tétrault for EY, Torys for Sagard, and Kugler Kandestin for Accord Financial.