Inscape Corporation (TSX:INQ), Inscape (New York) Inc. and Inscape Inc. (collectively, the “Inscape Group”)

Inscape Corporation (TSX:INQ), Inscape (New York) Inc. and Inscape Inc. (collectively, the "Inscape Group"), manufacturers and distributors of office furniture to customers predominantly located in the United States and Canada, were granted CCAA protection on January 12. The Inscape Group maintains its head office in Holland Landing, East Gwillimbury, Ontario and operates from locations in East Gwillimbury, Ontario, as well as various locations in the United States. Over 90% of the Inscape Group's sales are to customers located in the United States. The Inscape Group has faced a number of challenges as a result of the continued impact of the Covid-19 pandemic, including a dramatic decline in order volumes and average order size attributed to a slower than expected return-to-office and many offices instituting work from home policies or transitioning to an entirely virtual office environment. The Inscape Group has also suffered from a number of supply chain and tightening liquidity issues, resulting in a shortage of production materials, which in turn has perpetuated delays to the completion of existing customer projects and orders. The principal purpose of the CCAA proceedings is to allow the Inscape Group to conduct a wind-down and liquidation of its assets and business in an orderly fashion. A&M was appointed monitor. Aird & Berlis is counsel to the monitor, Miller Thomson is counsel to the Inscape Group, Hicks Morley is employment counsel to the Inscape Group and Gowling WLG is counsel to the directors and officers of the Inscape Group. By Dina Milivojevic

Laboratoires Bodycad inc.

Laboratoires Bodycad inc., a Québec City, Québec-based orthopaedic company specialized in the design and manufacturing of revolutionary and personalized products based on the anatomical specifications of a patient using the company’s proprietary Personalized Restoration™ software, obtained CCAA protection on December 22. Raymond Chabot was appointed monitor. Norton Rose Fulbright is counsel for Santé BB inc. (the DIP lender), Fasken is counsel for the company and Stein Monast is counsel for IQ. By Dina Milivojevic

DCL Corporation

DCL Corporation, a member of a larger group (the "DCL Group") which operates six manufacturing facilities throughout Canada, the US, the Netherlands and the UK, supplying pigments and dispersions to customers in the coatings, plastics and digital printing markets, obtained CCAA protection on December 20. On the same day, the company's parent and certain US subsidiaries obtained protection under Chapter 11 of the US Bankruptcy Code. As a result of heavy inflation in the global economy and the consistent pressures of increasing input costs, the DCL Group’s business is facing serious financial challenges. The company has also faced supply chain issues due to substantial delays and restrictions in receiving raw materials, higher costs and a higher working capital requirement. In addition, the company faced challenges with retaining and recruiting employees. These factors have eroded the company's gross margins and caused two of its three Canadian manufacturing plants to become unprofitable. The company has a number of past due payables with its trade creditors, is currently in default of various obligations under its credit facility and has a significant pension earn out owing to its previous owner. Consequently, the company is facing a liquidity crisis and urgently requires access to additional capital to meet its working capital needs, including to pay employees, vendors, utilities and the professional advisors required to address these issues. A&M was appointed monitor. Blakes is counsel for the company, Osler is counsel for the monitor, Goodmans is counsel for the Wells Fargo Bank, N.A. (the DIP lender), and Cassels is counsel for the term loan lenders. By Dina Milivojevic

Manitoba Clinic Medical Corporation (“Medco”)

Manitoba Clinic Medical Corporation ("Medco"), which operates the largest private healthcare clinic in Manitoba, and The Manitoba Clinic Holding Co. Ltd., which owns the real property where the clinic operates, obtained an initial order under the CCAA on November 30. Medco plays a significant role in Manitoba’s healthcare system, generating 90% of its revenue by billing the Manitoba Department of Health for services performed by physicians who enter into service agreements with Medco. In 2010, plans were made to construct a state of the art, ten-floor facility and to add two floors to the existing parkade, which was to be done in partnership with the CancerCare Manitoba Foundation. However, the second phase of construction, which was the construction of a new facility for CancerCare, did not proceed, and the companies were left with the large parkade. 52,000 square feet of space in the facility also remains unoccupied. In addition, in the past year, the companies have suffered losses due to, among other things, recent physician departures and an inability to recruit a full complement of physicians, which has negatively affected the companies' ability to generate income through invoicing Manitoba Health and recovering on overhead. A&M was appointed monitor. Counsel is Taylor McCaffrey for the companies, McDougall Gauley for the monitor and MLT Aikins for CIBC. By Dina Milivojevic

Midnight Integrated Financial Inc., Tower Adventures Ltd., Booker Adventure Corp., and Comstock Adventure Corp.

Midnight Integrated Financial Inc., Tower Adventures Ltd., Booker Adventure Corp., and Comstock Adventure Corp., an Edmonton, Alberta-based group of investment companies, obtained CCAA protection on December 5. Midnight conducted its operations under the trade name "Midnight Sun Financial" and operated as a financial firm that focused on investing in private opportunities, trading in capital markets and designing unique instruments for investors in the exempt markets. Each of Tower, Booker and Comstock was engaged in the formation and sale of an inventory of foreign exchange trading partnerships which were formed and established as turnkey businesses. CRA has audited the companies' tax returns for 2016-2020 and takes the position that the companies were promoting tax shelters without registering their share offerings as a tax shelter. CRA has assessed the companies for tax shelter promoter penalties of 25% of the consideration received (a cumulative amount of over $54 million). In addition, CRA has reassessed Booker and Comstock's income for 2017, resulting in over $14 million of additional tax owing. The companies dispute the assessments. EY was appointed monitor. Counsel is DLA Piper for the monitor and Duncan Craig for the companies. By Dina Milivojevic

iS5 Communications Inc.

iS5 Communications Inc., a Mississauga, Ontario-based company that provides customers with information technology services and proprietary hardware products – specifically servicing critical infrastructure, including the energy, transportation, heavy industrial, and defense industries – had its NOI proceedings continued under the CCAA on December 1. Grant Thornton was appointed monitor. Counsel is Fasken for the company, Aird & Berlis for Silicon Valley Bank, TGF for the stalking horse purchaser and Cozen O’Connor for the monitor. By Dina Milivojevic

Lightbox Enteprises Ltd. dba Dutch Love Cannabis

Lightbox Enteprises Ltd. dba Dutch Love Cannabis, a licensor and service provider with respect to the "Dutch Love" cannabis store brand, continued its NOI proceedings (which were commenced on November 1) under the CCAA on November 24. Like many other cannabis retailers, Lightbox was negatively impacted by the challenging business climate for cannabis retail operations and the COVID-19 pandemic, which had a significant impact on both the company's sales and operations. In 2021, Lightbox retained Kronos Capital Partners Inc. and Canaccord Genuity Group Inc. to assist in selling assets to aid in its restructuring. Lightbox has negotiated three asset purchase agreements to sell to independent, third-party purchasers: (a) two unprofitable store locations in Kelowna and Lake Country; and (b) the assets related to a now closed store location in Saskatoon. Despite the pending sales, the company has been unable to restructure so as to be in a position to meet its obligations as they come due, or to broker a sale of its operations en bloc as a going concern. However, such efforts have attracted interest in a restructuring transaction from a number of prospective parties, and the company intends to run a SISP in the CCAA proceedings to maximize value for stakeholders. EY is the monitor. Counsel is McMillan for the company, Fasken for the monitor, McCarthy Tétrault for Sundial Growers, Lawson Lundell for BMO and Alpine Retail Center, Dentons for Roseterra Investments, Daoust Vukovich for Pensionfund Realty, MLT Aikins for LS Properties Meadows Market BT and Cannavore Cannabis, Koffman Kalef for Robson Promenade Holdings, Gowlings for Aquanta Group and Forthspace Cannabis and Crabtree Law for 1204393 B.C. Ltd. By Dina Milivojevic

1138969 Ontario Inc. (“113”)

1138969 Ontario Inc. ("113"), which operates one of the few full-service aircraft maintenance, repair and overhaul businesses in Canada, and the only one located in Northern Ontario, and Springer Aerospace Holdings Limited ("Springer"), which owns the facilities from which 113 operates, obtained CCAA protection on November 23. The companies' financial difficulties are attributable to: (a) the significant impact of the COVID-19 pandemic on Springer’s business, and the decision not to undertake massive employee layoffs during the pandemic in the hope that the travel industry would normalize in the short- to mid-term; (b) operational inefficiencies arising from: (i) the rapid expansion of the business undertaken prior to the COVID-19 shutdown; and (ii) a lack of key performance indicators to measure performance on an operational and financial basis; (c) rapid expansion of the business without adequate strategic planning; and (d) high levels of turnover within the organization, including in the senior management team. MNP was appointed monitor. Counsel is Aird & Berlis for the monitor, Reconstruct for the companies and Gowling WLG for Desjardins, By Dina Milivojevic

Groupe Sélection Inc. et al.

Groupe Sélection Inc. et al., one of the largest owner/operators of senior living residences in Canada, obtained CCAA protection on November 21. The company sought to have FTI appointed as monitor. The company's lenders (National Bank, CIBC, Desjardins, TD, BMO, HSBC, Briva Finance and Fiera), who are collectively owed over $270 million, immediately filed a competing CCAA application, arguing that they were blindsided by the company's approach and that it was acting in bad faith. According to the lenders, the company is cash flow negative and has operated in a manner that is financially untenable. The lenders submit that the company is currently burning millions of dollars per month while refusing to reduce its expenses, and that their collateral is deteriorating in value. The lenders also argue that the company's principal is exerting undue influence over the company by preventing the implementation of restructuring measures and, among other things, has used the company's liquidity to fund a lavish lifestyle and for unnecessary expenses such as the use of a private jet. Judge Michel A. Pinsonnault ruled on Monday in favour of the lenders and PwC was appointed CCAA monitor. The company, however, has sought permission to appeal. Counsel is Stikeman Elliott for the company, Norton Rose Fulbright for National Bank representing the banking syndicate, McCarthy Tétrault for FTI, Fasken Martineau for PwC, Davies for Desjardins, Fishman Flanz for BMO and Gowling WLG for Briva Finance and Fiera. By Dina Milivojevic

Trichome Financial Corp.

Trichome Financial Corp. and various subsidiaries, which cultivate, process and sell premium and ultra-premium cannabis in Canada through their licenced subsidiaries, obtained CCAA protection on November 7. Prior to June 2020, Trichome was a specialty finance company, providing capital solutions to the Canadian cannabis market. One of Trichome’s loans was to the JWC Group. In April 2020, the JWC Group was granted protection under the CCAA. In addition to being the JWC Group’s senior ranking lender, Trichome was the DIP lender in the CCAA proceedings. On June 2, 2020, the Court approved a transaction between the JWC Group and Trichome for the sale of substantially all of the JWC Group’s assets to Trichome. Since then, Trichome's business has been focused on the cultivation, processing and sale of premium cannabis from its premises located in Kitchener, Ontario. Trichome has grown its consolidated revenue to over $30 million for the twelve months ending June 30, 2022. However, the business has been impaired by persistent and increasing liquidity issues. Trichome is now facing a severe liquidity crisis and has accrued significant accounts payable (approximately $7.7 million), of which approximately $7.4 million is overdue, with a large portion owing to essential suppliers. Trichome is currently unable to purchase cannabis from third-party suppliers and fill purchase orders, which has resulted in lost revenue of approximately $2 million in the third quarter of 2022. KSV was appointed monitor. Counsel is Bennett Jones for Trichome, Cassels for the monitor and Dentons for Cortland Credit Lending Corporation, the DIP lender. By Dina Milivojevic