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RECENT FILINGS
- Mike Weir Wine, a private corporation that was incorporated to produce, market and sell wine, branded as "Mike Weir Wine", from a winery located in Beamsville, Ontario, was placed in receivership on January 30 on application by Michael Richard Weir, owed approximately $2.2MM. The corporation also owes RBC around $4.3MM. In October 2017, Mike Weir sold all of his shares in the company to a company controlled by radio sports broadcaster, Bob McCown, who is the current president and director of MWW. As part of the sale transaction, Weir took back promissory notes, certain of which were secured. The promissory notes were not repaid when they became due on October 20, 2018. Since that time, the applicant, through its counsel and independently, has made numerous attempts to communicate with MWW and counsel to MWW regarding the indebtedness, however, no response has been received. The corporation's principal asset is its property and certain equipment. In order to maximize value realization from the property, the implementation of a sale process is necessary so that any buyer is able to take advantage of the spring time growing season by being in possession of the property with sufficient time to tend the vines so the vineyard does not lie fallow for another year. BDO was appointed receiver. Counsel is Sullivan Mahoney for the corporation, Cassels Brock and Kray Law for the applicant, Brauti Thorning Zibarras for the receiver and Aird & Berlis for RBC.
- VersAccounts, an Ottawa, Ontario-based technology company that provides a cloud-based enterprise resource planning system, filed an NOI on January 22, listing $1.2MM in liabilities. The company's customers are typically fast growing companies looking to upgrade from entry-level accounting software; they pay an average yearly fee of $10.0M (USD) to use the company's software. Over the past two years, the company's financial performance steadily declined as it failed to meet sales projections and some existing customers chose not to renew their agreements with the company. Due to the company's poor performance, it was unable to secure further funding, including additional equity investment. The principal purpose of the NOI proceeding is to create a stabilized environment to allow the company to run a sale process for the company's assets. With the assistance of the proposal trustee, the company has negotiated the terms of an asset purchase agreement with Seattle Atlantic pursuant to which it will act as the stalking horse bidder in the sale process. Farber is the proposal trustee. Counsel is DLA Piper for the company, Dentons for the proposal trustee and Osler for Seattle Atlantic.
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Sponsored by Bentham IMF
Click HERE for recent articles and a podcast on litigation funding for insolvency matters.
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- Sound City Music Entertainment (operating as RPM Distribution), Canada's leading independent vinyl distributor based in Concord, Ontario, filed for bankruptcy on January 25, listing $8.9MM in liabilities, including $5.4MM to Universal Music Canada and $2.0MM to Sony Music Canada. Farber is the bankruptcy trustee.
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Donaldson & James and The Agency Employment Services, two Kitchener, Ontario-based related companies that are part of a united business enterprise providing staffing services and solutions to customers, as well as support services to other staffing businesses, filed NOIs on January 23, listing $105.0M in liabilities. Around fall of 2018, management discovered that the companies' former CFO had not been making HST remittances and was reporting artificially high cash flows and profits. After discovering this, the companies' ability to finance their new growth was restricted and their senior secured operating lender, TD, signalled it wanted to exist the parties' relationship. FundThrough took an assignment of TD's debt in January 2019 and immediately terminated the credit agreement and demanded repayment. The NOI filing occurred shortly thereafter, with FundThrough agreeing to provide the company with DIP financing during these proceedings. FundThrough also indicated a desire to acquire the companies by utilizing its debt to "credit bid" and, accordingly, FundThrough and the companies have entered into a stalking horse asset purchase agreement. Farber is the proposal trustee. Counsel is Chaitons for FundThrough, Loopstra Nixon for the companies, McMillan for the proposal trustee and Aird & Berlis for TD.
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Sponsored by Accord Financial
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ASSETS FOR SALE
- PwC, in its capacity as receiver of 1905393 Alberta Ltd. pursuant to an order granted by the Court of Queen’s Bench of Alberta, has retained Colliers International to solicit offers to purchase the property described as 11702 99 Avenue, Grande Prairie, Alberta, consisting of one operating hotel and one new hotel in a state of substantial completion. Offering a total of 232 rooms, these two hotels provide the local market with top-tier accommodations offering full services, underground parking, banquet space, fitness and spa amenities, and convenient airport, hospital, and highway access. Further details can be found HERE.
- BDO Canada Limited, in its capacity as court-appointed receiver of Burry's Shipyard, is soliciting offers for the purchase of the company's assets on an "as is, where is" basis. Burry's Shipyard is a Clarenville, Newfoundland-based company that specializes in machining, fabrication, maintenance and the general refit work for vessels under 650 tonnes. The deadline for the submission of binding offers is 2:00 p.m. (NDT) on March 1, 2019. Further details can be found HERE.
- BDO Canada Limited, in its capacity as receiver of JFT Enterprises Ltd., is soliciting offers for the purchase of the assets of JFT, a manufacturing and metal fabrication business with land and buildings located in Long Harbour, Newfoundland and Labrador. The deadline for offers is 4:00 p.m. (NL) on March 8, 2019. Further details can be found HERE.
- MNP, in its capacity as receiver of 502489 B.C. Ltd. operating as Tru North Trucking (the “Company”), is soliciting offers for the sale of all of the Company’s personal property, consisting of a fleet of tractors and trailers, pick up trucks, Caterpillar equipment, office trailers, contents of mechanics workshop, and more. The Company, based in Fort Nelson, British Columba operated a trucking business in British Columbia and Alberta. Further details can be found HERE. Viewing of the assets is by appointment only between January 21, 2019 and January 25, 2019. The deadline for offers is February 4, 2019. If you are interested in learning more about this opportunity, please email Patty Wood.
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Need to promote a distressed asset sale? Email us!
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Sponsored by Maynards
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INSOLVENCY STORIES IN THE NEWS
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Sponsored by A.D. Hennick & Associates Inc.
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UPCOMING EVENTS
- ACG Toronto will be hosting an event entitled "The New 'United States - Mexico - Canada Agreement' — The Implications and Opportunities for Inbound Investing in Canada" on February 14. Further details can be found HERE.
- Toronto NextGen will be hosting an event entitled "Talk with the Titans" featuring lawyers from Blakes, PwC and TGF on February 20. Further details can be found HERE.
- IWIRC Western Canada will be hosting a Breakfast at Cucina Market Bistro Calgary on February 8. Further details can be found HERE.
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OBA will be hosting a 4-part event entitled "Insight from Murray Klein Award Winners" on March 6 (Part 3), and April 8 (Part 4). Speakers will discuss precedent-setting cases in which they were involved, as well as new concepts and practices in Canadian insolvency and restructuring law. Further details can be found HERE.
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ACG Calgary will be hosting a Middle Market Growth Conference & Ski Day on February 6-8. Further details can be found HERE.
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Click HERE to learn more about our Special Situation Finance Group
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FROM THE EDITOR
Our goal is to keep you current on everything that is happening in our market in one easy-to-read email per week.
- Insolvency Insider's Monday email is proudly written by Janice To. Henry Louis is the editor of the Insolvency Insider publications.
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Have a great week!
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