The Toronto Stock Exchange says it is reviewing the shares of Montreal-based toy maker Mega Brands Inc. for possible delisting.
The country's largest stock market said Monday that Mega Brands will have 120 days to regain compliance with continued listing requirements.
Mega Brands is in the midst of a recapitalization plan that eliminates nearly $300-million of debt.
Under the plan, which is slated to close at the end of March, Mega Brands will receive $221-million from the sale of equity to current major shareholders and new investors.
Fairfax Financial Holdings , a Toronto-based company that's primarily involved with insurance companies and certain distressed Canadian companies, and members of the Bertrand family are among the investors named.
Mega Brands has said the funds will be used to reduce debt and restructure the company's balance sheet without affecting its employees or customers.