Nova Scotia Judge Approves CFFI Ventures Restructuring Deal Amid Artwork Ownership Dispute
A Nova Scotia Supreme Court judge has approved a restructuring plan for John Risley's CFFI Ventures Inc., exchanging approximately US$1 billion in debt for the company's investment portfolio. While the court deemed the transaction preferable to bankruptcy, Justice John Keith imposed conditions requiring transparency regarding an unresolved dispute over hundreds of artworks claimed personally by Risley.
Justice John Keith of the Nova Scotia Supreme Court approved a restructuring deal for CFFI Ventures Inc. on Friday, marking a significant step toward concluding the Halifax-based company’s six-month creditor protection process. The agreement involves exchanging roughly US$1 billion in debt for virtually all of CFFI’s investment portfolio, which will transfer to New Tide Capital LP, an affiliate of HPS Investment Partners LLC, the company’s largest lender.
CFFI entered creditor protection in March with overall debt totaling approximately US$1.2 billion. According to FTI Consulting Inc., the court-appointed monitor, the sale process involved contacting 159 potential buyers. However, none of the seven preliminary bids received developed into a qualifying offer, leading the court to find the proposed transaction preferable to bankruptcy and fair under the circumstances.
Despite the approval, Justice Keith imposed specific conditions related to an ongoing conflict over the ownership of hundreds of artworks. CFFI lists 1,281 pieces of art as company assets, but a June report identified 539 works earmarked for John Risley personally. By August, that number had increased to 669 without evidence explaining the change. The disputed collection includes pieces by Group of Seven artists A.Y. Jackson, J.E.H. MacDonald, and Arthur Lismer, as well as more than 90 works by Maud Lewis.
The lowest value recorded for the art collection before the court was $8.1 million book value at the end of 2025. Negotiations led to a general understanding that artwork purchased before July 1, 2004, belongs to Risley, while works purchased after that date belong to CFFI. However, this arrangement was never formally documented, contributing to the inconsistencies in recording corporate versus personal expenses.
As part of the judge’s conditions, HPS and New Tide must provide a full account of any private settlement involving the disputed artwork to ensure greater transparency. Additionally, shares in Cormorant Utility Services Ltd. will not initially transfer to New Tide because another lender holds a prior claim on them. CFFI’s creditor protection stay has been extended until Dec. 18.