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Avison Young completed a debt restructuring deal after defaulting on payments in the second half of 2023 and agreed to appoint a new board of directors.

The Toronto-based commercial brokerage had its credit rating lowered after failing to make principal and interest payments in the third and fourth quarters.

The company will appoint a smaller independent board of directors led by CEO Mark E. Rose as chair in the coming weeks, Avison Young announced.

Under the deal, the company’s principals retain a “significant majority” equity ownership, Avison Young announced.

“Our financial partners recognize that our Principals are the heart of our business, and this deal will drive equity value for our shareholders and Principals, as well as market-based compensation in the years ahead,” Rose said in a statement.

Lazard Frères & Co. acted as investment banker to the syndicated lender group.

The brokerage has New England offices in Boston and Hartford.

Avison Young defaulted on its senior secured term loan in February after failing to make its third and fourth quarter principal and interest payments, prompting S&P Global Ratings to downgrade its credit rating and issue a “negative” rating on management and governance. Avison Young remained current on its revolving credit facility.