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RECENT FILINGS
- Rothmans, Benson & Hedges, a Toronto, Ontario-based company that produces and sells tobacco products in Canada, filed for protection under the CCAA on March 22. It is the third and last of the big three Canadian tobacco companies to obtain creditor protection this month. The company has two primary business segments: it is the second largest supplier of traditional tobacco products in the Canadian market, and it sells and distributes IQOS products, smoke-free electronic tobacco devices which it purchases from Philip Morris. In addition to two class action proceedings commenced against the company in Quebec, the company is a defendant to a number of other putative class actions, individual actions and government-initiated proceedings throughout Canada. The company has been held liable for approximately $13.5B as a result of the Quebec Appellate decision. EY was appointed monitor. Counsel is McCarthy Tétrault for the company, Cassels Brock for the monitor and Gowling WLG for Philip Morris.
- Besco International Investment, a Richmond, British Columbia-based company that owns a 25-acre property in Port Hope, Ontario, had its property placed in receivership on March 18 on application by Weichang Yang, owed approximately $3.6MM. The company is a guarantor of Huigang Sun's obligations to Yang. In May 2017, Yang advanced the equivalent of $5.0MM (CAD) in Chinese currency to Sun. Contrary to their oral agreement, Sun failed to provide Yang with the agreed amount of Canadian currency in return. Although Sun eventually repaid some amounts to Yang, he did not have the funds to pay the remaining balance owing; as such, the parties agreed to extend the maturity date of the loan. As part of the negotiation of this loan agreement, the company and Yang entered into a guarantee agreement. The company's obligations are secured by a general security agreement ("GSA"), which granted Yang the right to appoint a receiver over the company's assets and property upon a default under the GSA. KSV Advisory was appointed receiver. Counsel is Fasken for the applicant, Rebecca Huang & Associates for the company and DLA Piper for the receiver.
- Genco Holdings, a Calgary, Alberta-based developer of commercial and retail property that owns two properties collectively known as the "160 Acre Lands", a property known as the "634 Lands", and 12 separate condominium plan descriptions, had certain of its property placed in receivership on March 22 on application by HSBC, owed approximately $8.6MM. In light of various breaches and defaults committed by the company, HSBC has significant concerns regarding its ability to continue operating as a going concern. The application as it relates to 160 Acres Lands is adjourned by consent until next week with a view to reaching a deal. EY was appointed receiver. Counsel is Torys for the applicant and Fasken for EY.
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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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- JMG Metal, a Woodbridge, Ontario-based metal manufacturer specializing in custom component production for the furniture industry, filed for bankruptcy on March 12, listing approximately $1.0MM in liabilities. BDO is the bankruptcy trustee.
- Westpoint Capital, an Edmonton, Alberta-based investment fund manager that manages a portfolio of Canadian real estate, was placed in interim receivership on March 13 on application by Westpoint Investment Trust by its Trustees, Munir Virani and Marnie Kiel. BDO was appointed interim receiver. Counsel is DLA Piper for the applicant and Miller Thomson for the interim receiver.
- Kel's Electrical Contracting, an Edmonton, Alberta-based full-service electrical company, filed for bankruptcy on March 21, listing approximately $663.3MM in liabilities, including $244.0M to Eecol Electric. Bowra Group 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 edits recently made to a standard engagement letter to address the specific risks of taking on a restructuring engagement in the cannabis industry; and
- the nuances of the Initial Order granted in the JTI-Macdonald CCAA proceedings.
- 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
- Grant Thornton Limited, in its capacity as court-appointed receiver, is soliciting offers for the purchase of the assets and operations of 1793082 Ontario Ltd. o/a K.D. Quality Pellets. The principal assets consist of land, buildings, and equipment compromising the wood pellet production facility that K.D. Quality Pellets operated in New Liskeard, Ontario. The deadline for submission of bids to purchase the assets is 12:00 p.m. (EST) on April 17, 2019. For additional information, please contact Jason Kanji by email at Jason.Kanji@ca.gt.com or by phone at 416-777-6136.
- Albert Gelman Inc., in its capacity as proposal trustee of Synergy Stamping Inc. and 1696306 Ontario Inc. (the “Companies”), is soliciting offers for the purchase of the business and assets of the Companies. The Companies fabricate, design and manufacture metal components used in commercial and industrial lighting (e.g. louvers, slats and metal housings). The Companies supply products to original equipment manufacturers and the after-market, largely in the commercial and industrial construction industry. The Companies operate from a 22,000 square foot leased manufacturing facility located in Mississauga, Ontario. Interested parties may obtain a confidential information package by contacting Albert Gelman Inc. and executing a non-disclosure and confidentially agreement. Offers must be submitted to Albert Gelman Inc. located at 100 Simcoe Street, Suite 125, Toronto, Ontario by April 9, 2019 at 5:00 p.m. (Toronto time). For more information or to request an information package please contact Tom McElroy at 416-504-1650 ext. 117 or by email at tmcelroy@albertgelman.com.
- BDO, in its capacity as receiver of Sports Villas Resort and Twin Rivers Golf, collectively carrying on business as Terra Nova Resort, is seeking offers for the receiver's interest in certain assets of the companies on an "as is, where is" basis. The deadline for the submission of binding offers is 12:00 p.m. (ADT) on April 8, 2019. Further details can be found HERE.
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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 p.m. (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.
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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.
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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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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
- CAIRP will be hosting various Insolvency and Restructuring Forums across the country, in Montreal on April 29, Halifax on May 6, Edmonton on May 9, Vancouver on May 14, and Winnipeg on May 16. Further details can be found HERE.
- ACG Toronto will be hosting a Spring Social at The Shore Club in Toronto on March 26. Further details can be found HERE.
- TMA Toronto NextGen will be hosting an Indoor Bocce Ball Event at Lob on April 4. Further details can be found HERE.
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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.
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TMA Toronto will be hosting an event entitled "Perspectives on Work/Life Balance in the Turnaround Profession" on March 28. 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 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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