CLM Distribution Pool & Spa Products and Lectranator Systems, Calgary, Alberta-based pool and spa products distributors, filed for bankruptcy on January 10, respectively listing $3.5 million and $925.1 thousand in liabilities. Grant Thornton is the bankruptcy trustee.
Gestion Knighstbridge, a Montreal, Quebec-based residential real estate developer, was deemed bankrupt on January 9, listing $2.9 million in liabilities, including $373.6 thousand to RBC. The company had previously filed an NOI on November 15. The company attributes its financial difficulties to numerous factors that negatively impacted its cash flow, including delays in obtaining approvals from municipal authorities which postponed the launch of ongoing projects; an increase in construction costs and shortage of skilled labour; and cost overruns on certain projects. Richter is the bankruptcy trustee.
Gozco, a Calgary, Alberta-based investment firm, filed for bankruptcy in March 2018. PwC was appointed trustee. George Gosbee, who passed away in November 2017, was the company's sole director, officer, and shareholder. Karen Gosbee, his spouse, is the personal representative of Mr. Gosbee's estate. On January 7, PwC filed an application for an order declaring, amongst other things, that certain transactions granted by the company in favour of BNS (collectively, the "BNS Transaction") constitute a transfer at undervalue and are void as against the trustee. Bowfort, the company's primary creditor, had provided to the company a loan of USD $5.0 million secured by a promissory note dated January 2014. This loan was advanced to the company to assist in funding its USD $7.5 million investment in a US business venture. The company did not make any repayments of the loan to Bowfort other than certain baseline annual interest payments. On August 10, 2017, the Gosbees entered into a commitment letter with BNS to open a private and personal overdraft lending account. At their direction, the company completed a series of transfers whereby USD $750.0 thousand belonging to the company was transferred into this personal account, to the detriment of the company's creditors. At the time the BNS Transaction was completed, the company was insolvent. It is alleged that there was no valid business purpose for the company entering the BNS Transaction, and by doing so, it breached its obligation to Bowfort. PwC alleges that the BNS Transaction was intended to defraud, delay, or hinder the company's creditors. Bennett Jones is counsel to the applicant.
Dion Global Solutions (Canada), the Canadian branch of a global financial technology company based in India, filed for bankruptcy on December 30, listing $4.5 million in liabilities, including $3.2 million to FTI Consulting Hong Kong and $1.3 million to FTI Consulting Singapore. Farber is the bankruptcy trustee.
Norcon, a Clarenville, Newfoundland and Labrador-based marine transportation company that operates passenger/freight and cargo ships, was deemed bankrupt on December 25. The company, which owes BDC over $1.4 million, has been negatively affected by the loss of government contracts of ferry services, the general downturn in the aquaculture business, and the need to write off a large debt from a related company. The company had previously filed an NOI on November 25 and subsequently attempted to transition its proposal proceedings into CCAA proceedings but was unsuccessful. BDC's application for a court-appointed receiver was also dismissed and it therefore turned to a privately appointed receiver to realize on its security. Deloitte is the bankruptcy trustee. Grant Thornton is the private receiver. Counsel is Boyneclarke for the company, Cox & Palmer for BDC, McInnes Cooper for the trustee, and Stewart McKelvey for BNS.
Richard Pelletier Holdings, a holding company related to one of the sellers of Pacer Construction, was ordered bankrupt on November 26 on application by Pacer Construction Holdings, a holding company related to the purchaser of Pacer Construction. Pacer Construction was sold in 2014, with the sellers receiving approximately $135.3 million in cash. Following the closing of the sale transaction, it was alleged that Mr. Pelletier falsely represented the financial condition of Pacer. Mr. Pelletier denied the allegations and the matter went to arbitration. In 2019, an arbitral tribunal found the sellers liable to the purchaser for over $60.0 million plus interest and costs. The other sellers, excluding Mr. Pelletier and Richard Pelletier Holdings, have paid their portions of the awards. In July 2019, Mr Pelletier made a declaration that his holding company had no assets whatsoever. The applicant alleges that this is because a scheme was set out to divest the assets to related entities.The awards were converted into a judgment in August 2019 and the purchaser pursued a bankruptcy order on the basis that acts of bankruptcy were committed in the last six months. Grant Thornton is the bankruptcy trustee. JSS Barristers and MLT Aikins are counsel for the applicant.
Kitnuma Petroleum and Kitnuma Projects, two related companies based in Cambridge Bay, Nunavut, filed for bankruptcy on November 5, listing liabilities of $5.5 million and $2.7 million, respectively. Subsidiaries of a 100% Inuit-owned group, the companies provided fuel to residents of Cambridge Bay as well as general contracting and project management services across the Arctic. Deloitte is the bankruptcy trustee.
FTI Holdings, a London, Ontario-based trucking company, along with certain related companies, filed for bankruptcy on September 27, listing $18.9 million in liabilities, including $15.5 million to U.S. Bank and $1.1 million to HCI Equity Partners, a Washington, D.C.-based private equity firm which acquired the company in 2014 with a plan to merge it with another of its portfolio companies, Denver, Colorado-based HVH Transportation. However in August 2019, for various reasons both companies shut down. Grant Thornton was appointed bankruptcy trustee of the Canadian companies.
Ican Tile Distributors and Ican Contracting, two related Burnaby, British Columbia-based companies that operated as a wholesale tile distributor and contractor specializing in tile, granite and marble installation for multi-residential and commercial projects, were adjudged bankrupt on application by RBC on July 9. The bankruptcy orders were stayed and did not become effective until September 9, 2019, when the stay of proceedings was lifted and KPMG was appointed trustee. Poulsen & Company is counsel for the applicant.
FCV Technologies, a Vancouver, British Columbia-based information and technology company, filed for bankruptcy on September 4, listing approximately $8.9 million in liabilities. Founded in 2005 the company focused on developing smart digital products and information management tools to enable organizations to solve complex business problems and digitally transform their businesses. BDO was appointed bankruptcy trustee.