Coverage of the latest Canadian insolvency filings, court cases, news and more

2051095 Ontario Inc. o/a Pizza Workz

2051095 Ontario Inc. o/a Pizza Workz, which formerly operated as a pizza store in Carp, Ontario, filed an assignment in bankruptcy on April 29. There was a dispute amongst the shareholders as to the operations and management of the business regarding receipts and payments. On examination by the majority shareholder, it was ascertained that the company’s indebtedness far exceeded its repaying capacity. As there was no visibility towards the revival of business, the company filed an assignment in bankruptcy. Goldhar & Associates is the bankruptcy trustee.

By Dina Milivojevic

30 Roe Investments Corp.

30 Roe Investments Corp., the owner of a condominium located at 30 Roehampton Avenue in Toronto, Ontario, was placed in receivership on May 9 on application by Kingsett Mortgage Corporation, owed approximately $1.9 million as at January 2022. The original maturity date of the loan was in April 2021. Since that time, Kingsett has agreed to three extensions to allow the company to, among other things, pursue refinancing. These efforts have not been successful. KSV was appointed receiver. The company has appealed the receivership order. Counsel is Goodmans for the receiver, Bennett Jones for Kingsett and Solmon Rothbart Tourgis Slodovnick for the company.

By Dina Milivojevic

2513036 Ontario Ltd.

2513036 Ontario Ltd., which operated as a Sport Clips franchise from a leased location in Ajax, Ontario, was deemed bankrupt on May 5, listing approximately $204,000 in liabilities. The Company previously filed an NOI on April 25, but failed to file the projected cash flows within the 10-day period and was deemed bankrupt. BDO is the bankruptcy trustee and previously acted as the proposal trustee.

By Dina Milivojevic

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Michael Rotsztain on the evolution of restructuring and insolvency work in Canada

“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.