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RECENT FILINGS
- Elcano Group, a Calgary, Alberta-based independent oil and gas exploration, development, and production company, filed for protection under the CCAA on February 26, listing approximately $9.3MM in liabilities, including $6.3MM to National Bank of Canada ("NBC") under its primary credit facility. Several key factors have resulted in the company having constrained working capital, including the recent volatility of West Texas Intermediate (WTI) oil prices, the effect of mandated hedging programs, the softening of the Canadian dollar, the deteriorating differential price for Canadian-produced crude oil, and temporary operational challenges. Finally, the company has limited access to necessary cash flow for reinvestment due to its significant monthly payments to NBC. Since November 2018, the company has been assisted by Meta Capital Advisors to conduct a marketing process to seek investments in the company. Thus far, it has received a number of letters of intent which offer consideration sufficient to repay NBC in full, pay all of the company's liabilities, as well as provide value to the group's shareholders. The company currently requires a stay of proceedings in order to, amongst other things, provide the company with enough time to run a comprehensive and transparent sale and investment solicitation process. The company has retained the services of GMP FirstEnergy, a leading independent global energy investment bank, to assist in this sale and investment process. Hardie & Kelly was appointed monitor. Counsel is Bennett Jones for the company and BLG for the monitor.
- Stantive Technologies Group, a Kingston, Ontario-based enterprise software provider focused on the development and deployment of its proprietary content management platform, OrchestraCMS, filed for protection under the CCAA on February 25. The company previously filed an NOI on November 14, listing $19.1MM in liabilities. EY was appointed monitor. TGF is counsel to the company.
- Joe Books, a Toronto, Ontario-based leading independent publisher of graphic novels, comics and novels, filed for bankruptcy on March 1. FTI Consulting is the bankruptcy trustee.
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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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- A&Q Sons Management, Canadian One Home Health Care, and Q & Sons Management (collectively, the "Debtors"), which own and operate Fairfield Manor West Retirement Home and Fairfield Manor East Retirement Home — two retirement homes located in Kingston, Ontario — were placed in receivership on February 22 on application by Centurion Mortgage Capital. The Debtors currently list approximately $4.0MM in secured liabilities. In the spring and summer of 2018, following inspections of the retirement homes, the Retirement Home Regulatory Authority issued orders against the Debtors to revoke their operating licences. Additionally, around September 2018, the Kingston fire department issued evacuation orders at both facilities due to ongoing health and safety concerns. The Debtors subsequently defaulted in their mortgage loan obligations. BDO was appointed receiver. Counsel is Robins Appleby for the receiver and Chaitons for the applicant.
- Northview Collision, a Sutton West, Ontario-based auto repair shop, was placed in receivership on February 21 on application by RBC. msi Spergel was appointed receiver. Lerners is counsel to the applicant.
- Bay Lawrence, which owns real property at 2013 Lawrence Avenue West, Toronto, Ontario, was placed in receivership on February 14 on application by the National Bank of Canada. BDO was appointed receiver. TGF is counsel to the applicant.
- Pro Glass Services, a Mississauga, Ontario-based window and glass repair company, filed for bankruptcy on February 7, listing $953.2MM in liabilities, including $417.0M to CRA. msi Spergel is the bankruptcy trustee.
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Sponsored by Accord Financial
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DOCUMENT LIBRARY UPDATES
- Have you subscribed to our new Document Library service yet? If not, you've missed out on last Thursday's subscribers-only email where we discussed:
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the restrictions on who may be appointed as a CCAA monitor, noting the recent appointment of a CCAA monitor even though the firm had been the debtor's auditor in the past two years; and
- which local trustee is being put forward to act as CRO in the Quadriga proceedings, over the likes of various other Toronto-based applicants.
- Make sure your group is subscribed so you're aware of all the important case updates and legal issues developing.
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Check out our website for further details on the Document Library, including pricing. When you're ready, send us an email to get your group subscribed!
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ASSETS FOR SALE
- EY, in its capacity as Court appointed receiver, is requesting proposals for the purchase of the assets of the Canadian entities of the Kodiak Group of Companies. The deadline for submission of proposals for the purchase of the assets is 4:00 PM MT on March 28, 2019. Interested parties may download a copy of the information package and the Request for Proposals at www.ey.com/ca/kodiak or by contacting Trina Sorbara at (780) 412-2393.
- Powell Associates Ltd. (ICIN), in its capacity as receiver of PCB Holdings Ltd., formerly operating as the Three Mile Entertainment Complex, is selling by tender a multi-purpose entertainment facility with restaurant, kitchens, bars, taverns and lounges located in Saint John, New Brunswick. Tender bids must be received no later than 1:00 p.m. on March 22, 2019. To obtain more information, please contact Paul Moffett or click HERE.
- Powell Associates Ltd. (ICIN), in its capacity as receiver of Richibucto Furniture 2012 Ltd. / Meubles Richibucto 2012 Ltée., is selling by tender a former retail furniture store located in Richibucto, New Brunswick. Tender bids must be received by no later than 1:00 p.m. on March 20, 2019. To obtain more information, please contact Paul Moffett or click HERE.
- BDO, in its capacity as court-appointed receiver, is soliciting offers to purchase the operations and assets of Mike Weir Wine Inc. The principal assets consist of the owned land and buildings comprising the winery and certain wine making equipment located in Beamsville, Ontario. Further details can be found HERE.
- MNP Ltd., in its capacity as proposal trustee, is soliciting offers to purchase the assets and business of Satin Finish Hardwood Flooring, a Toronto, Ontario-based manufacturer of solid and engineered hardwood and importer/distributor of laminate and luxury vinyl flooring. The deadline for submission of offers is 5:00 p.m. (EST) on March 11, 2019. For additional information, please contact Michael Litwack by email at michael.litwack@mnp.ca or by telephone at (647) 475-4589.
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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.
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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.
- 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
- The 14th Annual Insolvency Hockey Game will be held in Toronto on April 8. Anyone in the industry is invited to play. To RSVP, contact Jordan Rumanek at jordan@rumanek.com.
- ACG Toronto, ACG Detroit and ACG Western Michigan are hosting a joint conference entitled "Cross-Border Connections 2019" in Detroit, Michigan from March 4-5. Registration is now open. Further details can be found HERE.
- IWIRC Western Canada will be hosting an evening of casual food and drink at Otto in Edmonton, Alberta on March 5. Further details can be found HERE.
- TMA Montreal will be hosting a Lunch and Learn on March 11. Further details can be found HERE.
- ACG BC is hosting a Lunch Meeting on March 4. Further details can be found HERE.
- IWIRC Western Canada will be hosting a High Fitness Aerobics Class on March 12 in Calgary, Alberta. Further details can be found HERE.
- ACG BC will be hosting a Middle Market Growth Conference from April 8-9. 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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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.
- Catch up on any emails you missed by visiting our archives!
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- Have a story or event to share? Email us!
- Feedback and suggestions on how we can improve our format or content are also always welcome!
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Have a great week!
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