Our summaries of recent Canadian insolvency filings.

Southwark Developments

November 5, 2018

Filing Type:

Trustee: The Bowra Group

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Southwark Developments, an Edmonton, Alberta-based full service construction company, filed for bankruptcy on November 5, listing approximately $1.2MM in liabilities. The Bowra Group is the bankruptcy trustee.

Filing Type:

Trustee: Deloitte

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British Bazaar Company and British Confectionery Company, St. John's, Newfoundland and Labrador-based wholesalers of candy and related products, filed an NOI on November 5, listing $8.4MM in liabilities, including $3.4MM to BMO and $1.8MM to Atlantic Canada Opportunities Agency. Deloitte is the proposal trustee.

JTL Industries

October 31, 2018

Filing Type:

Trustee: Bowra Group

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JTL Industries, a Neilburg, Saskatchewan-based manufacturer of grain bins, oil tanks, frac sand silos, liquid fertilizer tanks, grain bins, hoppers and floors, filed for bankruptcy on October 31. The company advised that rising steel prices, due in part to tariffs imposed by the US in March, were cutting into their profit margins, with their cost of steel up approximately 20%. The Bowra Group was appointed bankruptcy trustee.

Filing Type:

Company Counsel: GSNH

Trustee: KSV

Trustee Counsel: Bennett Jones

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58, 76 and 82 Old Kennedy Development, three related companies owning development properties in Markham, Ontario, filed NOIs on October 26. KSV was appointed proposal trustee. Counsel is GSNH for the company and Bennett Jones for the proposal trustee.

Royal Électrique

October 26, 2018

Filing Type:

Trustee: KPMG

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Royal Électrique, a Saint-Laurent, Quebec-based electrical company, filed an NOI on October 26. KPMG is the proposal trustee.

Fluid Brands

October 25, 2018

Filing Type:

Company Counsel: Torkin Manes

Trustee: Richter

Trustee Counsel: Osler

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Province:

Fluid Brands, the Toronto, Ontario-based parent company of Bowring and Bombay, home interior and decor retail store chains, filed an NOI on October 25, listing approximately $50.0MM in liabilities, including $23.5MM to CIBC and $14.8MM to Isaac Bennet Sales Agencies. The company acquired the Bombay and Bowring businesses in 2014 through a prior restructuring of those businesses pursuant to the CCAA but has not been able to turn the businesses around: Bombay lost approximately $3.1MM in the last year and Bowring lost $1.9MM during the same period. These operating losses, coupled with service of demands for repayment by certain of the company's secured creditors, resulted in the company filing an NOI. This will be the third insolvency restructuring for the Bombay chain of stores and the second insolvency restructuring for the Bowring stores. Over the next 60 days, the company intends to liquidate as much inventory as possible and to close certain locations as inventory levels drop. The company will assess the results of the holiday season liquidation before determining what its ultimate proposal to creditors will be. Merchant Retail Solutions and Gordon Brothers will be spearheading the inventory liquidation process. CIBC will be providing a DIP loan during the proposal proceedings. Richter is the proposal trustee. Counsel is Torkin Manes for the company, Gowlings for CIBC, BLG for Isaac Bennet Sales Agencies and Osler for the proposal trustee.

2333-4600 Quebec

October 25, 2018

Filing Type:

Trustee: Raymond Chabot

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Province:

2333-4600 Quebec, a Montreal, Quebec-based restaurant with take out service, filed for bankruptcy on October 25, listing $48.5M in liabilities, including $30.5M to Canada les Halles Holding. Raymond Chabot is the bankruptcy trustee.

Alum-Tek Industries

October 19, 2018

Filing Type:

Trustee: PwC

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Alum-Tek Industries, an Aldergrove, British Columbia-based manufacturer of enclosures, containers and subbase fuel tanks for power generation filed an NOI on October 19. The company attributed its financial difficulties to delays on certain projects and rising steel prices, resulting in unrecoverable costs and losses for the company. PwC is the proposal Trustee.

Northern Precast

October 19, 2018

Filing Type:

Trustee: Farber

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Northern Precast, a Sharon, Ontario-based manufacturer of precast concrete protects, had certain of its property placed under receivership on October 19 on application by 2347186 Ontario. Farber was appointed receiver.

4002911 Canada

October 18, 2018

Filing Type:

Trustee: Raymond Chabot

Industry:

Province:

4002911 Canada, a Saguenay, Quebec-based company, filed an NOI on October 18, listing $260.0M in liabilities. Raymond Chabot is the proposal trustee.

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