Inside Canada's Biggest Bankruptcies with Restructuring Lawyer Robert Thornton

In this episode of Reviving Giants, host Drew McManigle sits down with Robert “Bob” Thornton, founding partner of Thornton Grout Finnigan LLP (TGF) and one of Canada's most respected restructuring lawyers. Bob reflects on his unexpected path into insolvency law, the thinking behind building his firm, and some of the landmark cases that shaped his career and Canadian restructuring law. He also explains how Canada's approach to restructuring differs from the U.S. system and shares his perspective on where the profession is headed in an era of rapid disruption and AI. Throughout the conversation, Bob makes the case that creativity, sound judgment, and a steady hand under pressure matter as much as legal expertise. He also provides a thoughtful look at how restructuring is about leadership in times of crisis, as well as saving companies.

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🎧 Episode Highlights

[12:18] Chapter 11 vs. CCAA: Rules versus judicial power

[15:01] Post-Purdue: Why Canada is a restructuring destination

[21:45] The Tobacco Case: Canada's most complex restructuring ever

[23:50] The fee debate and the TGF guarantee

[39:50] Restructuring's Future: Disruption, AI, and real-time litigation

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🔑 Key Takeaways:

-Many clients don't know what their true problem is, so good restructuring starts with diagnosis. In the Coopers & Lybrand case, the realization that they'd lost 200 straight motions made the solution obvious: move the case to a different forum.

-Canadian judges can make "any order they think appropriate," which gives the CCAA a flexibility that Chapter 11 lacks. This allows solutions unavailable in the U.S., including third-party releases that were ruled out after Purdue.

-Creativity is one of the most valuable skills in restructuring, especially when there's no playbook to follow. The best outcomes often come from counsel willing to set new precedents rather than simply follow existing ones.

-When professional fees approach a company's actual value, the restructuring process itself starts to break down. Fee models built around delivering value, like TGF's guarantee, offer a practical alternative.

-Thornton expects technological change and AI to create more distress and compress timelines. That will make restructuring professionals, who are already trained to solve complex problems in real time, more essential than ever.

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🎙️ About the Guest

Robert Thornton, Founding Partner, Thornton Grout Finnigan LLP

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Robert "Bob" Thornton is a founding partner of TGF, a Toronto firm specializing in commercial litigation, insolvency, and restructuring. He is widely recognized as a leading figure in Canadian insolvency law and regularly leads the firm's most complex and high-stakes mandates. Chambers Canada highlights his work on major restructurings on behalf of corporations, monitors, and creditors. His recognitions include being named Insolvency Litigator of the Year at the 2025 Benchmark Litigation Canada Awards and a Global Elite Thought Leader in Restructuring & Insolvency by Who's Who Legal in 2021. He has also served as President of the Insolvency Institute of Canada.