Coverage of the latest Canadian insolvency filings, court cases, news and more
Pizza Salvatore, a Thetford Mines, Quebec-based pizza restaurant franchise with more than 12 restaurants in operation in Quebec, filed for bankruptcy on January 17, listing $761.0M in liabilities. Raymond Chabot is the bankruptcy trustee.
Gymboree Group, a San Francisco, California-based chain of specialty retail stores for children’s apparel with operations across the US, Canada and Australia filed for bankruptcy under Chapter 11 in the United States Bankruptcy Court on January 17. Concurrently, Gymboree (“Gymboree Canada” or the “Company”) filed an NOI on January 17, listing $9.4M of liabilities, including $8.9M of liabilities that are owed to entities that are subsidiaries of the Gymboree Group. The Company operates 49 retail stores in Alberta, British Columbia, Manitoba, Nova Scotia and Ontario. A group of agents including Great American, Tiger, Gordon Brothers, and Hilco (the “Agents”) will be leading liquidation efforts across the US and Canada. KPMG is the proposal trustee. Counsel is Norton Rose Fulbright for the Company, Osler for the proposal trustee and Cassels Brock for the Agents.
2433552 Ontario, carrying on business as GreenTerra Homes, filed for bankruptcy on January 11, listing $5.0MM in liabilities. The company commenced operations in 2017 as a custom builder of steel frame modular homes, metal buildings, sheds and related prefab kits. The company operated from a 110,000 sq. ft. plant located in Trenton, Ontario, which is owned by a related corporation. Albert Gelman is the bankruptcy trustee.
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“Study the past if you would define the future.” Confucius’ quote is a favourite of Michael Rotsztain, who has been practising insolvency and restructuring law for over 40 years. Beginning his career at the legendary insolvency firm of Harries Houser, where he had the good fortune of being mentored by a bankruptcy law dream team, Michael spent the major part of his career at a leading Bay Street firm and since 2014 has been the chair of GSNH’s five-lawyer Restructuring and Insolvency Group. Michael recounts how insolvencies and restructurings have evolved over his career and shares what he thinks are the next steps in the evolution.
Supreme Court of Canada Decides Federal Crown’s Deemed Trust Priority for Unremitted GST/HST Doesn’t Survive Bankruptcy in Canada v. Callidus Capital Corporation
Romain Viel of McInnes Cooper explains that the Supreme Court’s hesitation to comment on the scope of a Crown’s deemed trust before a tax debtor’s bankruptcy in the Callidus case is likely because there is ongoing litigation about this issue (Canada v. Toronto-Dominion Bank)