941996 Alberta Ltd. (“941 AB”), a holding company whose sole shareholder is BDO in its capacity as trustee of an individual deceased bankrupt estate, was placed into liquidation on December 8, 2022. As 941 AB was an inactive corporation, a liquidation order was sought to pay outstanding creditors and distribute residual funds to its shareholders, in this case the trustee of the bankrupt estate for ultimate distribution to the creditors of the bankrupt estate. BDO was appointed Liquidator. By Dina Milivojevic
Ontario Electronic Stewardship ("OES"), a not-for-profit organization that operates a regulated recycling program in Ontario, submitted a wind-up plan (the "Plan") for its Waste Electrical Equipment Program to the Resource Productivity and Recovery Authority in July 2019. As contemplated by the Plan, the board of directors of OES passed a resolution in February 2021 requiring OES to be wound up voluntarily under the provisions of the Corporations Act (Ontario). On April 1, Deloitte was appointed liquidator.
Bryn Gwyrdd Holdings Inc. ("BGHI") and Mynyddoedd Holdings Inc. ("MHI"), Vancouver, British Columbia-based companies, were placed in liquidation on March 4. In December 2017, David Standish and John Milsom of KPMG UK were appointed receivers over 27 companies, including BGHI and MHI which held properties in Canada. MNP was appointed liquidator. Farris is counsel to the applicants.
British Columbia Discovery Fund Inc. (the "Fund"), which was formed in 2002 as a vehicle to invest in eligible small businesses as part of the venture capital program started by the government of British Columbia, was placed in liquidation and ceased trading on December 1. The Bowra Group, which was appointed Liquidator, assumed control of the Fund and will settle its obligations, dispose of its remaining assets, and make final distributions to shareholders. In accordance with the steps for the voluntary liquidation as approved by shareholders in the Information Circular, the Liquidator will liquidate the portfolio assets of the Fund upon the occurrence of liquidity events or secondary trading opportunities in the underlying portfolio.
Akinvest — XPT Inc. ("Akinvest"), a Toronto, Ontario-based company, was placed in receivership and liquidation on November 24 on application by Dwight Grovum and Grovum Equities. Akinvest was formed in 2009 through the amalgamation of Akinvest and XPT Forwarding, two companies that operated in an international auto brokerage that facilitated online purchases, sales and deliveries of used and salvage vehicles from North American automobile auctions to dealers located outside of North America. The assets of Akinvest were sold shortly after the amalgamation and virtually no business activity was carried on thereafter. The company’s sole remaining asset was cash of approximately $9.9 million (USD). Akinvest’s shareholders (Andrei Kouznetsov 70% and Dwight Grovum 30%) agreed to wind up the company and distribute the cash to its shareholders on a pro-rata basis. Despite these intentions, it is alleged that Kouznetsov has refused over several years to distribute the assets, leading Grovum to seek the appointment of a receiver to effect the wind down. Zeifmans was appointed Receiver and Liquidator. Counsel is Fogler for Grovum and Bouchelev Law for Kouznetsov.
Curexe Inc., a Toronto, Ontario-based company that provides online payment processing services to merchants operating in a variety of sectors and industries, was placed in liquidation on November 2 on application by SmartPay Inc. ("SmartPay"), which owns all of the issued and outstanding shares of the company. Pursuant to a Memorandum of Understanding, the company pays SmartPay the net fees received from its clients in return for SmartPay providing all of the "back room" services required for the company to provide services to its clients. Around June, the company's deposit accounts with Luminus Financial Services & Savings Credit Union Limited ("Luminus") were inexplicably frozen and, as a result, the company has been unable to carry on business in the ordinary course. SmartPay believes it is in the best interests of the company's clients to liquidate the company so that the funds held by Luminus can be distributed in an orderly fashion. MNP was appointed liquidator. Gowling WLG is counsel to the applicant.
First Hamilton Holdings Inc., a Toronto, Ontario-based investment corporation specializing in high yield bonds, along with its subsidiaries, was placed in liquidation on May 21, listing approximately $34.0 million in liabilities. The company, whose business is closely related to PACE Securities Corp. ("PSC"), attributes its financial difficulties to various factors, including the COVID-19 pandemic, which resulted in the company having to respond to margin calls by Laurentian Bank Securities ("LBS"), PSC's carrying broker and the custodian of the securities of the company's clients. While the company was able to reach certain arrangements with LBS in April, the company was required to liquidate significant portions of its portfolio of corporate bonds to meet LBS' new margin requirements. This reduction in the assets of the company's portfolio meant lower interest income from the corporate bonds which it held. The company was also forced to sell its corporate bonds at prices substantially less than their acquisition costs. MNP was appointed liquidator. Dickinson Wright is counsel to the companies.
PACE Securities Corp., a subsidiary of PACE Savings & Credit Union Ltd. (the "Credit Union") which operates as an Ontario Securities Commission regulated investment fund manager and dealer regulated by the Investment Industry Regulatory Organization of Canada (“IIROC”), was placed in liquidation on May 14. In 2018, the Credit Union was placed under the administration of the Financial Services Regulatory Authority after financial irregularities were uncovered. On May 21, the IIROC suspended the company from its membership. EY was appointed liquidator. Goodmans is counsel to the company.
Novelion Therapeutics (NASDAQ:NVLN), a Vancouver, British Columbia-based biopharmaceutical company dedicated to developing and commercializing new treatments for rare diseases, commenced implementation of a shareholder-approved plan of liquidation on January 16. The company owns a minority equity interest in Amryt Pharma, a Dublin, Ireland-based biopharmaceutical company ("Amryt Equity"). Since the Amryt Equity is the company's primary remaining material asset, the company expects that any value available to its shareholders will consist almost entirely of the Amryt Equity or the net proceeds. Alvarez & Marsal was appointed liquidator. Counsel is Norton Rose Fulbright for the company and Fasken for the liquidator.
PrimeWest Mortgage Investment Corporation, a Saskatoon, Saskatchewan-based secondary lender, was placed in voluntary liquidation on October 31. Following the replacement of key personnel in 2016, the company conducted an in-depth review of, among other things, its mortgage portfolio, the results of which necessitated increases to its loan loss provisions and, ultimately, a restatement of its 2014 and 2015 financial statements. The company attempted to mitigate its mortgage portfolio losses in 2017 through a number of initiatives but was unable to return the company to profitability. Potential sales were also explored but no bona fide offers were received. The board and management therefore determined that a court-supervised liquidation was the best available option for winding up the corporation's affairs and returning any remaining capital to the shareholders. KPMG was appointed liquidator. McDougall Gauley is counsel for the company.