Coverage of the latest Canadian insolvency filings, court cases, news and more
El Bosco Inc., a Toronto, Ontario-based food service company, filed an assignment in bankruptcy on January 10, 2022. Dodick is the bankruptcy trustee.
Rising Phoenix International Inc., a Montreal, Quebec-based student recruitment company, and various related entities, certain of which operated private colleges in Quebec, obtained CCAA protection on January 7. The vast majority of the students at the colleges are international (95% from India) and are attending the colleges as part of the “Study, Work, Immigrate” program implemented by Immigration and Citizenship Canada. The insolvency of the companies is attributable to, among other things: (1) the impact of the COVID-19 pandemic; (2) untimely and improperly financed expansions; (3) changes to the immigration process for international students; and (4) certain litigation and public relations issues faced by the companies related to the propriety of recruiting large numbers of English-speaking international students from India, the quality of education at private colleges and the fact that students were not required to learn French. Richter was appointed monitor. Counsel is Kaufman Lawyers for the companies, Stikeman Elliott for the monitor, Fishman Flanz and TGF for Firm Capital Mortgage Fund and KRB Lawyers for Gestion Levy Inc., the DIP lender.
HockeyShot Inc., a Mississauga, Ontario-based online specialty retailer of hockey training equipment, was placed in receivership on January 6, on application by Pivot Financial I Limited Partnership, owed approximately USD $1.1 million and CDN $2.5 million. After suffering operating losses and liquidity issues in 2021, the company engaged Welch Capital Partners to assist it to find a potential investor or buyer. These efforts were unsuccessful, and Pivot declared the entire amount of the loan due and payable on December 17. PwC was appointed receiver. Counsel is Chaitons for Pivot, Torkin Manes for the company and DLA Piper for the receiver.
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Does a clause in a guarantee offend the anti-deprivation rule? Javeri sold lands to Windsor Park in 2016. Part of the consideration for the sale
“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.
The Insolvency Institute of Canada presents the results of its study into how many Canadian insolvencies have been due to the Covid-19 pandemic, with the biggest takeaway being that Covid-19 has not yet had the massive impact that was expected and was the primary factor for the insolvency in only 15% of the filings.