Rockshield Engineered Wood Products ULC, a Cochrane, Ontario-based manufacturer of plywood used to make a variety of products including furniture and cabinetry, filed an NOI on February 8, listing approximately $15.1 million in liabilities, including $2.9 million to BNS. Due to the seasonal variations in logging roads and poor transport truck access during the warmer months, the company purchases the majority of its raw materials in the winter. During the winter months, the company stockpiles approximately $100.0 thousand worth of logs per week over and above its manufacturing needs. Since the company's expenses during the stockpiling period exceed its revenue from operations, it has historically financed this "bulge" with capital from shareholders. This year, however, the company's shareholders have declined to extend financing for the bulge. In addition to the company's pending liquidity crisis, BNS has issued a demand on its credit facilities, asserting a breach of a debt service ratio covenant. During these proceedings, BNS is providing DIP financing to the company. Dodick & Associates is the proposal trustee. Counsel is Weisz Fell Kour for the company, Pallett Valo for the proposal trustee and Miller Thomson for BNS.
Tradesmen Enterprises Limited Partnership ("TELP"), a Calgary, Alberta-based limited partnership that provides general mechanical contracting and pipeline construction, assembly, and maintenance throughout Western Canada — along with its general partner, Tradesmen Enterprises Inc. (together with TELP, "Tradesmen") — filed NOIs on February 1. Tradesmen lists approximately $47.7 million in liabilities and $52.5 in assets. Until January 11, 2021, Tradesmen's principal contract was for the construction of a water management project for Teck Coal Limited (the "Project"). The Project was massively over budget, with the final projected cost of completion being more than four times the original budget of $32.0 million. In the course of Tradesmen's work on the Project, Teck Coal Limited also consistently delayed payment, which had a negative impact on Tradesmen's cash flow and its ability to pay subcontractors. Teck Coal Limited, which currently owes Tradesmen approximately $50.0 million, purported to terminate the contract on January 11, 2021. As a result, Trademen's only alternative was to seek court protection by filing the NOIs. KSV Restructuring is the proposal trustee. Counsel is Bennett Jones for the proposal trustee, Lawson Lundell for Tradesmen, and BLG for BMO, the senior lender.
Allied Track Services Inc., a Grimsby, Ontario-based provider of railroad construction, maintenance, and signal services throughout Canada, filed an NOI on January 21. The principal purpose of the restructuring proceedings is to create a stabilized environment to allow the company to enter a transaction for the sale of its business and assets through a “stalking horse” sale and investor solicitation process. KSV Advisory is the proposal trustee. Counsel is Bennett Jones for the company, Blakes for the proposal trustee and Chaitons for the DIP lender.
Algold Resources Ltd. (TSX: ALG), a Montreal, Quebec-based junior mining company that focuses on the exploration and development of gold deposits in West Africa, filed an NOI on January 15, listing approximately $16.8 million in liabilities, including $9.8 million to Aya Gold & Silver Inc. ("AGS"). The pre-COVID-19 pandemic macro-economic background of gold, including increasing interest rates, stronger USD, and the downward trended price of gold, has led to a challenging financing environment for junior gold exploration projects. In addition, the jurisdiction in which the company operates, Mauritania, has been the object of certain negative perceptions in the industry and among investors that have made it more difficult to attract financing and support. Confronted with various liquidity issues and difficulties in raising debt or equity financing, the company ceased its operations on November 19. In June 2020, IIROC issued a cease trade order against the company. AGS, a Canadian mineral exploration and development company, has notified the company of its interest in providing interim financing during the court-supervised restructuring proceedings. Raymond Chabot is the proposal trustee. Counsel is Lapointe Rosenstein Marchand Melançon for the company and Dentons for AGS.
EzTix Event Ticketing Inc., a Vancouver, British Columbia-based company that provides ticketing solutions to event organizers around the world, filed an NOI on November 30 and a proposal to its creditors on December 29. The company lists approximately $1.1 million in liabilities. McEown and Associates is the proposal trustee.
Studio Black Suede Inc., a Montreal, Quebec-based premium footwear brand, filed an NOI on December 24, 2020 owing approximately $434.0 thousand to CIBC. Litwin Boyadjian is the proposal trustee.
Brant Telephone Inc., a Burlington, Ontario-based telecommunications interconnect company, filed an NOI on December 11, 2020 and a proposal to its creditors on January 6, 2021. The company was founded in the 1980s and grew into an integrator of Unified Communications and Contact Centre solutions concentrating in Avaya premise-based systems. The company lists approximately $2.1 million in liabilities. Albert Gelman is the proposal trustee. Counsel is WeirFoulds for the proposal trustee and Keyser Mason Ball for the company.
33 Laird Inc., 33 Laird GP Inc. and 33 Laird Limited Partnership, entities created for the purpose of pursuing a commercial real estate development project in Toronto, Ontario, each filed an NOI on November 28. The project is in the early stages of construction, with part of the structural work complete, but very little mechanical or electrical work and no finishing work. The Project was principally financed through secured loan facilities with DUCA Financial Services Credit Union Ltd. (“DUCA”). DUCA made a demand on its loan and security on November 19, having identified various financial issues with the project, including cost overruns, the impact of the COVID-19 crisis on costs, timeline to complete, and also potential viability of the proposed tenants, which would impact takeout financing at the end of the project in order to allow DUCA as the construction lender to exit. MNP was appointed proposal trustee. Counsel is Goldman Sloan Nash & Haber for the companies and Weisz Fell Kour for MNP as proposal trustee.
Directions East Retail Ltd., a Toronto, Ontario-based jewellery retailer with a 50-year history, filed an NOI on October 30. Since 2017, the company's sales have declined significantly due to reduced mall traffic and a surge in competing internet sales. Although the company began consolidating its operations in 2019, it was forced to totally shut down operations with the onset of the COVID-19 pandemic in the spring of 2020. When operations re-opened in July, the company had further terminated five of its retail locations. Shortly after, RBC — which had been the company's banker since 1972 — sent the company a demand letter and Notice of Intention to Enforce Security. Given that holiday season sales are critical to the company's financial outlook, the company will wait to file a proposal until after it reviews the financial results of the 2020 holiday season. Rosen Goldberg is the proposal trustee. Counsel is Minden Gross for RBC and Fogler, Rubinoff for the proposal trustee.
Welland Forge Corp., a Welland, Ontario-based manufacturer of custom metal forgings, filed an NOI on October 27, listing approximately $11.3 million in liabilities. Welland Forge Corp.’s biggest customers have historically been in the automotive industry. Its customers are particularly vulnerable to the volatile nature of the oil and gas industry, and the pandemic has exacerbated that volatility. Earlier in the year, the company suffered the loss of its major customer, which accounted for approximately 65% of the company's sales, to an overseas supplier. Accordingly, the company has identified the need to wind down its operations. The company previously terminated its approximately 60 employees. BDO is the proposal trustee. Counsel is Miller Thomson for the proposal trustee and Madorin Snyder for the companies.