Mosaic Group Files for Court Protection

Toronto-headquartered Mosaic Group Inc. and certain of its Canadian and U.S. subsidiaries (collectively, Mosaic Group) filed for court protection, on December 17, 2002, under the Companies’ Creditors Arrangement Act and under Chapter 11 of the U.S. Bankruptcy Code. Mosaic Group provides marketing and sales solutions and outsourced services to major companies. At the time of filing for court protection, Mosaic Group’s total secured and unsecured debt was in excess of $485 million. In order to address Mosaic Group’s short-term working capital deficiency and related urgent cash requirements, Mosaic Group’s existing secured lenders, namely a syndicate of banks and certain noteholders, provided debtor-in-possession financing to Mosaic Group.

Mosaic Group was represented, in Canada, by Goodmans LLP with a team that included Jay Carfagnini, Celia Rhea, Joseph Pasquariello, Melaney Wagner and Keren Groll; and in the U.S., by David Botter, David Staber, Kevin Rice, Charles Gibbs and Stephen Kuhn of Akin Gump Strauss Hauer & Feld LLP. Jim Riley, Peter Stanford and David Bannon of Ogilvy Renault represented the independent committee of the board of directors of Mosaic Group Inc.

The bank syndicate was represented in Canada, by David Kee, Kevin McElcheran, Milly Chow, Amanda Kushnir and Linc Rogers of Blake, Cassels & Graydon LLP, and in the U.S., by Dan Stewart and William Wallander of Vinson & Elkins LLP.

The noteholders were represented in Canada, by Sheryl Seigel and Andrew Laidlaw of Fasken Martineau DuMoulin LLP, and in the U.S., by Chester Fisher, Ronald Silverman, Mark Deveno and Bruce Silvers of Bingham McCutchen LLP. KPMG Inc. was the court-appointed monitor and Stonecrest Capital Inc. was the chief restructuring officer.