1908736 Ontario Limited (fka Cole Engineering Group Ltd.) and CEG Partners Inc., two Markham, Ontario-based companies that provide specialized advisory, consulting, and engineering solutions, filed for bankruptcy on March 26. Cole Engineering Group Ltd. lists approximately $2.2 million in assets and $3.7 million in liabilities, including $2.4 million to Mohsen Mortada. CEG Partners Inc. lists approximately $2,231 in assets and $1.0 million in liabilities. Farber is the bankruptcy trustee.
Morris Group of Companies, which consists of four Saskatchewan-based companies and an American branch in the business of manufacturing and distributing farm equipment, had its sale to 102114983 Saskatchewan Ltd. in the CCAA proceedings (the "MEL Transaction") approved and a receiver was appointed to carry out the final administrative duties and satisfy the conditions of the MEL Transaction. BMO also brought applications for bankruptcy for certain entities in the Morris Group of Companies (the "Dormant Companies"). Since the bankruptcy orders were granted, the CCAA proceedings will be terminated in regard to the Dormant Companies and a bankruptcy trustee will be appointed. Alvarez & Marsal was appointed receiver and bankruptcy trustee. Counsel is McDougall Gauley for the Group, Burnet, Duckworth & Palmer for BMO, and MLT Aikins for Alvarez & Marsal.
Copetrex Oil & Gas Co. Ltd., a Calgary, Alberta-based oil and gas company, filed for bankruptcy on March 9, listing approximately $319.3 thousand in assets and $54.0 thousand in liabilities, including $38.2 thousand to Canadian Natural Resources. The company attributes its financial difficulties to various factors, including declining revenues and significant contractual liabilities on its properties. KPMG is the bankruptcy trustee.
0932293 B.C. Ltd. (o/a CELLICON), an Abbottsford, British Columbia-based company that provides retail sales of wireless accessories, as well as phone repair services at mall-based kiosks and stores, was deemed to have filed an assignment in bankruptcy on March 2, listing approximately $362.0 thousand in assets and $1.8 million in liabilities. Most of CELLICON's locations are operated by independent operators under Management Services Agreements ("MSAs"). Like others in the retail sector, CELLICON's business was adversely impacted by the various restrictions and closures arising from the COVID-19 pandemic. More recently, CELLICON's cash flows were negatively impacted by certain operators' refusal or inability to pay the fees due under the MSAs. In response, on February 19, CELLICON filed an NOI with a view to stabilizing its business. After CELLICON realized it could not fund payment of its March 2021 rent, however, it chose not to file the cash flow projections required under the BIA, resulting in it being deemed to have filed an assignment in bankruptcy. Counsel to certain of the operators have indicated that the MSAs are not compliant with various franchise laws across Canada and, as such, have advised that the operators will have claims against CELLICON that would set off any amounts owed under the MSAs. MNP is the bankruptcy trustee.
Services Clean d'Oeil Inc., a Saint-Augustin-de-Desmaures, Quebec-based cleaning services company for residential and commercial buildings, serving notably clients in the hotel industry, filed an assignment in bankruptcy on February 8, 2021. In 2019 and 2020, the company acquired material and equipment to develop an expertise in commercial laundry services to be offered to its clients in the hotel industry. The recent pandemic and downturn in the hotel industry forced the company to cease its operations at the beginning of 2021. PwC was appointed bankruptcy trustee. Counsel is McCarthy Tétrault for CIBC, the secured lender, and Langlois Avocats for the trustee.
Beaver Lake Resources Corporation, a Calgary, Alberta-based exploration and production company, filed for bankruptcy on January 28, listing approximately $889.8 thousand in liabilities and approximately $nil in realizable assets. Grant Thornton is the bankruptcy trustee.
Destiny Organics Inc., a Nisku, Alberta-based organic fertilizer and living soil company, filed for bankruptcy on January 4, listing approximately $647.6 thousand in liabilities and $112.4 thousand in assets. The company is a wholly-owned subsidiary of Destiny Bioscience Global Corp., a cannabis genetics and tissue culture research and development company, which (along with various other subsidiaries) was placed in receivership on May 22 on application by Synergy Projects (Destiny) Ltd. and Synergy Projects Ltd. The company was no longer operating at the time of the receivership. The Bowra Group is the bankruptcy trustee.
Yoga Centre Toronto, a Toronto, Ontario-based not-for-profit yoga centre, filed for bankruptcy on December 23 after its revenue decreased significantly due to the COVID-19 pandemic and, consequently, the centre could not sustain payment of debts related to the financing of leasehold improvements at its studio and other debts. Albert Gelman Inc. is the bankruptcy trustee.
Mr. Manjoo Logistics Ltd., a Hamilton, Ontario-based company, filed for bankruptcy on December 21, 2020, listing approximately $99.6 thousand in liabilities and $26.0 thousand in assets. Schwartz Levitsky Feldman is the bankruptcy trustee.
2423402 Ontario Inc., a special purpose entity that is wholly owned by Bondfield Construction Company Limited, was assigned into bankruptcy by its court-appointed receiver, Alvarez & Marsal, which was certified on December 3, 2020. The company was previously placed in receivership on December 6, 2018 on application by BMO, as administrative agent for a syndicate of lenders owed approximately $122.2MM. The company had no significant assets other than the contracts for the development, construction and completion of the Cambridge Memorial Hospital, a $187.0MM, fixed price project. The company did not perform the construction itself but rather contracted the work back to Bondfield. Counsel is McCarthy Tétrault for BMO, Blakes for the receiver, and Osler for Bondfield.