TORONTO: Real estate services firm Avison Young (Canada) Inc says it’s close to a restructuring that will clean up its balance sheet after it defaulted on a senior term loan, causing a ratings downgrade.

       Toronto-based Avison Canada missed principal and interest payments in the third and fourth quarters of 2023, S&P Global Ratings said in a statement last Friday, downgrading the firm to “SD” for selective default. S&P’s action was expected, company spokeswoman Andrea Zviedris said by email.

       “We are going to just eliminate significantly more than 50% of all of our obligations,” chief executive officer Mark Rose said in an interview with Bloomberg last Saturday, adding that Avison’s board will also shed non-independent directors.

       The company was preparing to announce the restructure as soon as today and updated the ratings agencies on its plans. At that point, S&P said it was then obliged to inform the market immediately, though it didn’t provide a full picture of the company’s position, Rose said.

       Representatives for S&P didn’t immediately respond to a request for comment. — Bloomberg