North Mill to reportedly acquire Pawnee Leasing and Tandem Finance

North Mill Equipment Finance is set to purchase Pawnee Leasing Corporation and its affiliated company, Tandem Finance, reported Monitordaily, citing court documents

The transaction is a reverse vesting deal and awaits green light from both the Ontario Superior Court of Justice, with a decision expected on 7 March 2025, and a US Bankruptcy Court under Chapter 15 proceedings, with a hearing set for later in March.

The acquisition is a key move in the restructuring of Pawnee Leasing’ parent company Chesswood Group, under the companies’ Creditors Arrangement Act (CCAA).

US-based Pawnee Leasing is engaged in small-ticket equipment leasing for businesses across various credit spectrums.

Tandem Finance has ceased originations and merged into Pawnee’s servicing operations in recent months.

This restructuring initiative began in October 2024 following Chesswood’s financial challenges, which included liquidity issues and defaults under its credit agreements.

Court documents reveal that North Mill emerged as the leading bidder in a competitive sale process, which drew interest from several parties, the report said.

The share purchase agreement has been signed between North Mill and Chesswood’s Pawnee Vendor, which manages the operations of Pawnee Leasing and Tandem Finance.

The deal will allow North Mill to acquire all shares of Pawnee Leasing and Tandem Finance.

The reverse vesting transaction will transfer certain liabilities to Residual Co., a new entity that will remain within the CCAA proceedings.

The sale’s proceeds are designated for repaying Chesswood’s debtor-in-possession (DIP) financing obligations. The deal is anticipated to conclude by 18 April 2025, the report added.

“North Mill to reportedly acquire Pawnee Leasing and Tandem Finance” was originally created and published by Leasing Life, a GlobalData owned brand.

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