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CCCA_V7No2_GlobalOutlook-FIN_CCCA 13-05-16 4:12 PM Page 26 Feature — CCCA 2013 National Spring Conference than wait for the worst, the executive team wanted a solution uncertainty and ambiguity “set against a backdrop of slowing that would provide access to capital with the goal of getting the cross-border integration.” It’s not business as usual. project up and running, he said. Riccardo Trecroce knows quite a bit about that. When he The solution wasn’t easy. The company sold 15 per cent of its joined Magna in 2008, General Motors and Chrysler, the com- interest to Nexen for $735-million, a move that reduced OPTI’s pany’s two major customers, were on the verge of bankruptcy. “It workforce from 550 to 40 people. “It isn’t pleasant having to let was a challenging time, not just for Magna, but many, many com- 300-plus people go,” Bradford says. “From our legal perspective, panies and many industries,” says Trecroce, vice-president and it took an awful lot of lifting to make sure that all of our con- general counsel, North America, at Magna in Aurora, Ont. tracts were properly transferred to our partner.” But it taught him Bankruptcy of the two auto giants would mean reduced pro- “the value of flexibility and leadership and having to work in a duction, potential losses and disruptions to the operations of very timely fashion to save a company, to make sure you preserve Magna and its suppliers. the options.” The company’s lawyers needed to understand what the com- Bradford, now vice-president, joint venture and legal at pany’s contractual rights were and “what a bankruptcy of such a CNOOC Canada Ltd., and Riccardo Trecroce of Magna large company like a GM or a Chrysler might look like,” Trecroce International Inc. were asked to share their expertise at the said in an interview. Once the bankruptcies actually occurred, CCCA spring conference on adapting to change as organiza- they had to very quickly understand the rules of engagement. tions evolve. The consensus was that it requires flexibility and the “We were working with external counsel we had retained to ability to react quickly in a volatile world. “The market never assist us in evaluating those, to assist us in preparing for potential sleeps, the market constantly moves,” Bradford says. “As execu- Chapter 11 bankruptcy of these two customers and then to assist tives, we have to be flexible, we have to be able to react imme- in understanding what the Chapter 11 regime was going to be diately to the situation.” And when times get tough, “that’s when all about,” he said. The complex arrangements required immedi- you see real leadership.” ate analysis and the team needed to quickly absorb the informa- Economic uncertainty is providing plenty of opportunities for tion then distill it so their business people could understand the in-house counsel to show leadership. The current business land- impact. He relied strongly on external counsel with experience scape, according to a recent Ernst & Young report, is one of in the automotive industry and bankruptcy matters. 26 CCCA Canadian Corporate Counsel Association SUMMER 2013