Coverage of the latest Canadian insolvency filings, court cases, news and more
CB 11 South Woodbridge Corp.
CB 11 South Woodbridge Corp., the owner of 1.91 acres of development land in Woodbridge, Ontario, was placed in receivership on September 18, on application by Canada ICI Capital Corporation (“ICI”), owed approximately $7.6 million. The proposed development was a 4-storey multi-family residential condominium building with approximately 90 units and 108 parking spaces. When the ICI mortgage was entered into, a second mortgage in favour of Fred Hui was subordinated to the ICI mortgage. Contrary to the terms of the subordination agreement, Hui made demand for payment under the second mortgage, issued a notice of sale and entered into a listing agreement for the property. In addition, a number of construction liens and cautions have been registered against the property. EY was appointed receiver. Counsel is Blaney McMurtry for ICI and Dickinson Wright, Tyr and Murray Maltz Professional Corporation for the company.
By Dina Milivojevic
BR Capital Inc.
BR Capital Inc. and twelve related entities each filed an NOI on September 14, 2022, listing approximately $2.7 million in liabilities. The companies, based in Calgary, Alberta, had developed various cloud-based software systems for dental/medical clinics and for teaching functions. Due to disruptions caused by the COVID-19 pandemic, demand for new licenses and revenue had declined, resulting in liquidity pressures and resulting in the decision to file the NOIs. KPMG is the proposal trustee, Gowlings WLG is counsel for the companies and Osler is counsel for the proposal trustee.
By Dina Milivojevic
Genesis Integration Inc. (“Genesis”)
Genesis Integration Inc. (“Genesis”), an Edmonton, Alberta-based company in the business of designing and integrating audiovisual collaboration systems for both public sector and corporate clients, and its sole shareholder, 965591 Alberta Ltd. (“965”), a holding company, were each placed in receivership on September 14, on application by Cortland Credit Lending Corporation (“Cortland”), owed approximately $9.5 million, plus legal fees, interest and costs. The Cortland debt is guaranteed by Genesis and its wholly-owned subsidiary, Fusion Cine Sales & Rental Inc. (“Fusion”). On the same day that the Receivership Order was granted, a Reverse Vesting Order was granted approving a going concern sale to Sequent AI Exchangeco Limited, a related party, of all of the issued and outstanding shares of Genesis, including Genesis’s ownership interest in Fusion, without any effect on Fusion’s creditor obligations, including in respect of the Cortland debt and amounts it owes to certain critical suppliers. KSV was appointed receiver. Counsel is Dentons for Cortland, McMillan for the receiver and Blakes for the purchaser.
By Dina Milivojevic
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Carillion Canada Inc., 2022 ONSC 4617
Can an exercise of set-off rights be contrary to the CCAA? The Applicant, Carillion, applied for protection under the Companies’ Creditors Arrangement Act following the liquidation proceedings
Howard Steinberg on the growing pains of the cannabis industry
Canada’s cannabis industry is starting to experience growing pains. It is grappling with a lack of capital, a mismatch in supply and demand, and many of the other challenges that can be expected in a nascent industry.
Howard Steinberg, a seasoned executive and CRO focused on change management and who has been in the cannabis industry for many years, recently sat down with us to chat about market conditions and a recently completed restructuring in the space.
Chandos Construction Ltd. v. Deloitte Restructuring Inc.: Anti-Deprivation Rule Exists in Bankruptcy Law
Romain Viel, Hilary Gilroy and Colin Boyd of McInnes Cooper discuss the key takeaways from the Supreme Court of Canada’s decision in Chandos Construction Ltd. v. Deloitte Restructuring Inc. and provide guidance on the precise scope of the anti-deprivation rule, including the types of clauses that would not violate the rule.