Coverage of the latest Canadian insolvency filings, court cases, news and more
Solis Foods Corporation Inc. (“Solis”), Vivian Group Inc. (“Vivian Group”) and 1610830 Alberta Ltd. (“161Co”)
Solis Foods Corporation Inc. (“Solis”), Vivian Group Inc. (“Vivian Group”) and 1610830 Alberta Ltd. (“161Co”), three related companies, filed an NOI on June 8, listing approximately $19.0 million in secured debt and $5.1 million in unsecured trade debt. Together, the companies facilitate a business enterprise in which Solis manufactures and packages snack foods for the food service and retail grocery industries, including producing national branded and private-label snack foods. Vivian Group is a holding company responsible for real estate and 161Co is a holding company solely responsible for certain Alberta real estate (and equipment) that was the home of a now-closed production facility. After Solis ran into liquidity issues in 2018, David Andrew Vivian (“Andrew”) sold 50% of his interest in Vivian Group to Super Pufft Snacks Corp. (“Snacks”). In addition to providing working capital to the companies, Snacks would provide production expertise to help improve Solis’ profitability. However, profitability did not improve in 2019 as certain key customers were lost and Solis reported $1.2 million in losses. With the onset of COVID-19 related shutdowns in 2020, the companies’ financial situation further deteriorated as many restaurants and food services business closed. In light of the financial challenges facing the business, Snacks determined it is no longer prepared to fund the companies’ working capital needs. Sun Pac Holdings Ltd. will be providing interim financing during these proceedings. EY is the proposal trustee. Counsel is Loopstra Nixon for the companies, DLA Piper for the proposal trustee, Aird & Berlis for Sun Pac Holdings Ltd. and Snacks, and GSNH and Hager Law for Andrew.
Randhawa Group of Companies (“RGC”), which runs a trucking, warehousing, and logistics business, was placed in receivership on June 7 on application by Swinderpal Singh Randhawa, who has been in a dispute with the respondent Rana Partap Singh Randhawa concerning the ownership, operation, and sale of RGC since 2018. KSV Advisory was appointed receiver. Counsel is Stikeman Elliott for the applicant and Cassels for the receiver.
Duck Mountain Environmental Ltd., a Kamsack, Saskatchewan based Hydrovac excavation and potable water/septic service company, filed an NOI on May 31, listing approximately $1.9 million in liabilities. The Bowra Group is the proposal trustee.
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