Coverage of the latest Canadian insolvency filings, court cases, news and more
Reliable Bookbinders, a Scarborough, Ontario-based binding servicing and printing company with a 73-year history, filed for bankruptcy on May 14 and was also placed in receivership on the same day. The company’s failure can be attributed to the decline in the printing industry, which has affected trade binderies and resulted in reduced sale volumes and price pressures. PwC was appointed receiver and is the bankruptcy trustee.
Rockport Blocker and Rockport Canada et al. (collectively the “Rockport Group”), subsidiaries of Rockport, a West Newton, Massachusetts-based global designer, distributor and retailer of comfort footwear in more than 50 markets worldwide, brought a motion under the CCAA to recognize in Canada the US Chapter 11 bankruptcy proceedings that the Rockport Group filed on May 14. The company partially blamed the separation from its previous owner, Reebok, which sold the company in 2015, for its financial difficulties. The Rockport Group currently owes approximately $53.4MM (USD) under its revolving credit agreement. If the lenders were to require repayment in full of the amounts owed by Rockport Canada, as a co-borrower and under its guarantee of the US debtors’ obligations under the agreement, it would be unable to repay the full amount owed. Rockport Canada itself has 64 unsecured creditors that are owed approximately $760.0MM (CAD). The company has entered into an asset purchase agreement to sell substantially all of its assets to CB Marathon Opco, an affiliate of Charlesbank – a private equity group. To facilitate the cooperation between the US and Canadian Court, Rockport Blocker requested that it be recognized to act as foreign representative. Richter was appointed Information Officer. Canadian counsel is BLG for the Rockport Group, Stikeman Elliot for Richter, Gowling WLG for Charlesbank and Goodmans for the senior secured noteholders.
PTL Holdings, PTL Services (Equipment), CSL Services (Industrial) and 9263357 Canada (collectively the “PTL Group”) a Southern Harbour, Newfoundland and Labrador-based company which is in the business of heavy equipment rental and contracting labour services, was placed in receivership on May 11 on application by CIBC, a major secured creditor owed approximately $6.0MM. The second ranking secured creditor is owed $11.5MM. PTL Group’s diversified rental fleet consisting of 230+ pieces of heavy construction, earthworks, transportation and site support equipment together with its complement of approximately 70 full-time unionized employees with extensive experience in a variety of fields and its location in Southern Harbour can deliver services to key industrial, construction, and oil and gas customers. BDO was appointed Receiver. Counsel is Wickwire Holm for CIBC and Cox & Palmer for the Receiver.
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To the general public who see him on TV business news, Doug Hoyes is the serious guy in a suit that is always warning Canadians to get their spending under control. But helping consumers manage their debt has become Doug’s passion — a passion that has translated into a very successful personal bankruptcy practice. Doug sits down with us and shares how he built his practice and what he does to succeed in the ultra-competitive personal bankruptcy space.
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