HyperBlock (CSE:HYPR), a Toronto, Ontario-based company that operated one of the largest cryptocurrency mines in North America, filed for bankruptcy on May 19, listing approximately $10.4 million in liabilities, including approximately $5.0 million to Project Spokane and $2.8 million to Sean Walsh. On May 14, the company's electricity provider terminated its long-term power contract with the company. This termination, combined with the impact of the recent Bitcoin algorithm halving which cut the company's mining rewards in half, and the company's generally deteriorating working capital position, made it unable and uneconomical to continue operations. Crowe Soberman is the bankruptcy trustee.
ValidateIT Technologies, a Toronto Ontario-based technology company that provided market research data and deep analytic solutions for leading Canadian corporations, filed for bankruptcy on April 22, listing $1.8 million in liabilities. Ira Smith Trustee & Receiver is the bankruptcy trustee.
Composites Innovation Centre Manitoba Inc., a Winnipeg, Manitoba-based not-for-profit engineering firm that provides design, analysis, testing, and fabrication services to the manufacturing industry, filed for bankruptcy on April 14, listing approximately $1.5 million in liabilities. When the company was first formed, it was backed by Boeing Canada and a group of some of Canada's largest agricultural equipment manufacturers. However, the company's efforts to develop the supply chain necessary to make its work sustainable consistently proved unfruitful. Eventually, the company lost a significant amount of its public sector operating and project funding from the provincial and federal governments. Deloitte is the bankruptcy trustee.
Splend, a Mississauga, Ontario-based company in the business of arranging vehicle leases for on-demand drivers (e.g. Uber drivers), was adjudged bankrupt on April 3, listing approximately $7.2 million in liabilities, including $6.3 million to Element Fleet Management. The company, which currently has in excess of 400 customers, has been negatively impacted by the onset of social distancing requirements and other consequences of the COVID-19 pandemic. Due to the sudden and material decrease in the company's revenues, it is unable to generate sufficient cash flows to service its debts. Deloitte is the bankruptcy trustee. Counsel is Dentons for the bankruptcy trustee and Blakes for Element.
EncoreFX, a Victoria, British Columbia-based foreign exchange firm, filed for bankruptcy on March 30. After suspending its trading activities, the company advised clients that the restructuring had become necessary as a number of customers to whom the company granted credit defaulted on their obligations to the company because of the rapid changes in the FX market caused by COVID-19. Most of the company’s clients were importers and exporters doing $10.0 million to $50.0 million in FX transactions a year. EY is the bankruptcy trustee.
Direct Oil & Gas Inc., an oil and gas venture with producing properties in northern Alberta, filed for bankruptcy on February 28, listing approximately $16.6 million in liabilities, including $10.0 million to Rothwell Enterprises. Currently, the company's net production revenues are insufficient to cover operating and financing costs. MNP is the bankruptcy trustee. Due to the drastic downturn in oil prices after its appointment, MNP in consultation with Sproule Energy Consultants determined that all of the properties should be shut in. This shut in was completed on March 21. Gowlings is counsel to MNP.
Celadon Group, a significant American truckload shipping company, had its US Chapter 11 bankruptcy recognized in Canada on January 23 and a receiver was appointed to oversee the liquidation of the assets of Celadon Group's sole Canadian business, Hyndman Transport. On December 9, 2019, Celadon Group and its 25 subsidiaries (collectively, the "Chapter 11 Debtors") filed for Chapter 11 bankruptcy protection and ceased operations. During the summer of 2019, the decline in overall freight tonnage and excessive truck capacity led to a significant decline in freight rates and a corresponding decline in the Chapter 11 Debtors' liquidity. The Chapter 11 Debtors' principal secured creditors include MidCap Financial Trust, Blue Torch Finance, and Luminus Energy Partners Master Fund. Upon discontinuation of its business, Hyndman terminated nearly all of its workforce and purportedly owes former employees approximately $2.3 million. The appointment of a receiver will allow these employees to claim and receive statutory payments, including for unpaid wages and termination pay. Blue Torch Finance will be providing DIP financing during these proceedings. KSV Advisory was appointed receiver. Counsel is DLA Piper for the Chapter 11 Debtors and Celadon Group (as the foreign representative), Bennett Jones for the receiver, McMillan for Blue Torch Finance, Norton Rose Fulbright for MidCap Financial Trust, and Koskie Minsky for 200 former Hyndman employees.
Medlantis, a Toronto, Ontario-based company that was incorporated by Dr. Kieran Murphy to acquire an online medical education platform originally developed and operated by the University Health Network, filed for bankruptcy on January 22, listing $5.1 million in liabilities, including $2.4 million to Dr. Helmut Schuehsler and $1.3 million to Dr. Murphy. The company's technology allows for data mining of thousands of hours of medical lectures, cases, procedures, workshops, and demonstrations, designed to make expert clinical answers accessible to everyone, everywhere, fast. Despite its promising potential, the company struggled to generate subscription revenues and over time began to fall in arrears with its suppliers. After attempts to raise additional capital proved unsuccessful, the company filed an assignment in bankruptcy. Link & Associates is the bankruptcy trustee.
Thomas Sabo Ltd./Ltee., a jewellery retailer, filed an assignment in bankruptcy on January 21, 2020. The purpose of the filing was to complete the restructuring of the Canadian operations from bricks and mortar to an e-commerce business model. With 11 remaining physical locations across Canada, after voluntarily closing other locations in the past, and employing approximately 80 employees, the company had been experiencing declining revenue and losses from most of its mall locations. Grant Thornton is the bankruptcy trustee. Dale and Lessmann LLP is counsel for the company.
Campus Vibe, a Mississauga, Ontario-based student event organization and management platform, filed for bankruptcy on January 17, listing $109.5 thousand in liabilities. Farber is the bankruptcy trustee.