Coverage of the latest Canadian insolvency filings, court cases, news and more
GTA Plumbing Limited (“GTA”)
GTA Plumbing Limited (“GTA”), a family-owned and operated business that provides a variety of plumbing services in the Greater Toronto Area, including residential, commercial and construction type projects, filed a Proposal to its creditors on January 18, with total liabilities of approximately $2.1 million. GTA found itself indebted to CRA due to a variety of factors, including mismanagement, alleged misappropriation of corporate funds, medical issues suffered by the principal and the COVID-19 pandemic restrictions that took hold in 2020. GTA identified the need to seek a settlement with its creditors. BDO is the Proposal Trustee.
By Dina Milivojevic
Inscape Corporation (TSX:INQ), Inscape (New York) Inc. and Inscape Inc. (collectively, the “Inscape Group”)
Inscape Corporation (TSX:INQ), Inscape (New York) Inc. and Inscape Inc. (collectively, the “Inscape Group”), manufacturers and distributors of office furniture to customers predominantly located in the United States and Canada, were granted CCAA protection on January 12. The Inscape Group maintains its head office in Holland Landing, East Gwillimbury, Ontario and operates from locations in East Gwillimbury, Ontario, as well as various locations in the United States. Over 90% of the Inscape Group’s sales are to customers located in the United States. The Inscape Group has faced a number of challenges as a result of the continued impact of the Covid-19 pandemic, including a dramatic decline in order volumes and average order size attributed to a slower than expected return-to-office and many offices instituting work from home policies or transitioning to an entirely virtual office environment. The Inscape Group has also suffered from a number of supply chain and tightening liquidity issues, resulting in a shortage of production materials, which in turn has perpetuated delays to the completion of existing customer projects and orders. The principal purpose of the CCAA proceedings is to allow the Inscape Group to conduct a wind-down and liquidation of its assets and business in an orderly fashion. A&M was appointed monitor. Aird & Berlis is counsel to the monitor, Miller Thomson is counsel to the Inscape Group, Hicks Morley is employment counsel to the Inscape Group and Gowling WLG is counsel to the directors and officers of the Inscape Group.
By Dina Milivojevic
Bloom Health Partners Inc. (CSE:BLMH)
Bloom Health Partners Inc. (CSE:BLMH), a healthcare company with a registered address in Vancouver, British Columbia, was placed in receivership on January 3, on application by CPL Investments LLC and Uloo Partners LLC (collectively, the “Sellers”). The company wholly owns Bloom Health Holdings Corp. (the “Buyer”), a Delaware corporation. In June 2021, the Buyer purchased the Sellers’ interest in Round Hill Health Partners, LLC for consideration of US$12,250,000. The Buyer has repeatedly failed to make payments owed to Sellers. After granting the Buyer two waivers, the Sellers demanded payment in late October 2022. In November 2022, the company informed the Sellers that the company’s board and its interim CEO had resigned, and that it intended to wind down its business. As a result, the Sellers sought the appointment of a receiver to act as the company’s management and continue operations until July 31, 2023, so that the company can fulfil its contract to supply COVID-19 testing services to the Texas Department of State Health Services, coordinated with an orderly wind down and sale of redundant assets. BDO was appointed Receiver. Farris is counsel for the Sellers.
By Dina Milivojevic
Bizou to close stores, affecting 350 employees – Montreal Gazette
Inscape files for creditor protection – Woodworking Network
The Very Good Food Company is in Receivership – FOODinCANADA
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EncoreFX Inc. (Re), 2023 BCSC 39
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