Coverage of the latest Canadian insolvency filings, court cases, news and more
Norman Prior Nodwell, who operates a mixed farming operation near Biggar, Saskatchewan, had an interim receiver appointed over all of his livestock, forage and feed on October 14, on application by BMO, owed approximately $2.2 million. On September 29, the Animal Protection Services Branch of the Government of Saskatchewan issued a Corrective Action Order against Mr. Nodwell, requiring him to provide his livestock with supplemental feed to improve the livestock’s body condition and to humanely euthanize or provide veterinary care to distressed animals. On October 6, an agent of BMO inspected the farm and discovered that the bison are in poor condition, Mr. Nodwell had recently euthanized a number of bison, Mr. Nodwell does not maintain an inventory of his cattle and bison, Mr. Nodwell’s bison are unmarked and unidentifiable and Mr. Nodwell’s pastures are in extremely poor condition. Deloitte was appointed interim receiver. Counsel is MLT Aikins for BMO and Cuelenaere LLP for Mr. Nodwell.
Axess Pickering Ltd., the owner of real property located at 1525 Pickering Parkway in Pickering, Ontario (the “Property”), had a receiver appointed over all of its assets on October 12, on application by C & K Mortgage Services Inc. (carrying on business as Rescom) and 975393 Ontario Inc., the company’s senior secured creditors. The Property is a vacant 1.273 acre parcel which is being developed for construction of 336 units, in two residential condominium towers and approximately 26,000 square feet of office/restaurant space. On September 1, there was a default in the payment of interest under the charge on the Property, and no payments have been received since that date. Alvarez & Marsal was appointed receiver. Counsel is Dickinson Wright for the applicants.
Mahal Venture Capital Inc. (“Mahal”) and Golden Miles Food Corporation (“Golden Miles”), Brantford, Ontario-based companies, had a receiver appointed over their assets owned or used in connection with a flour mill located on 155 Adams Blvd., Brantford, Ontario (the “Real Property”). The application was brought by Skymark Finance Corporation, owed approximately $29 million. Mahal is the registered owner of the Real Property and, once completed, Golden Miles was to operate the flour mill located at the Real Property. KSV was appointed receiver. Counsel is Chaitons for Skymark Finance Corporation, Kirwin Partners for the companies and Blakes for the receiver.
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“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.