Luxury and Sports Cars

Luxury and Sports Cars, a Woodbridge, Ontario-based used luxury car dealer, was placed in interim receivership on July 4 on application by RBC, owed approximately $450.3M. On June 4, RBC engaged msi Spergel (ICIN) as a consultant to review the company's financial and operational performance, and to evaluate RBC's security position. When msi Spergel (ICIN) attended at the company's premises to carry out its mandate, it discovered that substantially all of the used cars that form the company's inventory had been removed from the premises, effectively defeating the enforcement of RBC's rights under its security. msi Spergel (ICIN) was appointed interim receiver. Counsel is Aird & Berlis for RBC, Harrison Pensa for the interim receiver and Soble, Rickards & Associates for the company.

Mt. Cross Pharmacy

Mt. Cross Pharmacy, a Hamilton, Ontario-based retail pharmacy, was placed in interim receivership on May 16 on application by CWB Maxium Financial, owed approximately $4.6MM. msi Spergel (ICIN) was appointed interim receiver. On June 14, 2018, the applicant sought and obtained a receivership order appointing msi Spergel (ICIN) as the receiver over the company. The pharmacy's business has been negatively impacted by several developments, including the opening of a competing pharmacy located close to Mt. Cross, as well as the pharmacy's website defaulting to that of the competing pharmacy. Counsel is Pallett Valo for the receiver and Miller Thomson for the applicant.

Direction Nord-Sud

Direction Nord-Sud, a Montreal, Quebec-based logistics company, was placed in interim receivership on April 27 on application by Third Eye Capital (TEC), owed approximately $6.4MM. Since 2015, numerous events of default occurred and continue to occur under the loan agreement. TEC held off enforcing its security while the company, with the assistance of Richter, ran its own informal sales process. No transaction transpired however, nor was the company able to refinance with a different lender when the loan matured in June 2017. In 2017 and through 2018, TEC discovered a number of alleged fraudulent and suspicious activities, including the overstatement of revenue and accounts receivable and the depositing of certain receipts into a related company's bank account. On April 16, without consulting TEC, the company filed an NOI, with BLT Lapointe & Associés acting as trustee. Concerned about the dishonesty, lack of transparency, and deviousness of the company's principals, and fearing a deterioration of its security, TEC applied for an interim receivership order. KPMG was appointed interim receiver and was authorized to commence an accelerated sales process for the company's assets. Counsel is Fishman Flanz Meland Paquin for the applicant.