ACCEL Energy, a Calgary, Alberta-based oil and gas company, filed an NOI on October 21. Deloitte is the proposal trustee.
Biomod Concepts, a Sainte-Julie, Quebec-based biotechnology company, filed a proposal on October 17. Founded in 2009, the company is involved in the research and development of an innovative delivery system of active ingredients for the beauty and health industries. Facing a liquidity crisis earlier in the year, the company temporarily ceased operations and filed an NOI on April 8. A sale process yielded no bids for the business or its assets, but the company's principal shareholder has structured a transaction that will see the company's core business and technology transferred to a new entity. The company's primary secured creditors, Investissement Québec (IQ) and Quantius Innovation Income Fund LP, together owed approximately $6.3 million, have consented to the transaction, and IQ will be a preferred shareholder of the company under the new structure. The purchaser has also advanced $300.0 thousand to fund a proposal, which translates to a distribution of 22 cents on the dollar for unsecured creditors. Richter is the proposal trustee. Counsel is Gowling WLG for the company and BLG for Quantius.
Skyline Sign Service, an Edmonton, Alberta-based signage company, filed an NOI on October 9, listing $580.0 thousand in liabilities, including $436.5 thousand to CRA. The Bowra Group was appointed proposal trustee.
CO2 Solutions (TSX-V: CST), a Quebec City, Quebec-based technology company, filed an NOI on September 16, listing approximately $12.2 million in liabilities. The company was developing the technology to capture and purify carbon dioxide emitted from fossil fuel power plants, pulp and paper mills and other large emitters of carbon dioxide. The company commissioned its first commercial project at a pulp mill of Resolute Forest Products in Saint-Félicien, Québec in March 2019. The project experienced significant cost overruns though, and in April 2019 the company's board announced that it was creating a special committee to review its strategic options. The strategic review will continue while the company is under creditor protection. EY is the proposal trustee.
Les Serres Lefort, a Sainte-Clotilde, Quebec-based producer of greenhouse vegetables, filed an NOI on September 6, listing $44.7 million in liabilities, including $31.7 million to Desjardins and $6.9 million to Investissement Québec. With over 20 hectares of greenhouses, the company is one of the largest producers in the province. For the last several years, the company has been focusing its efforts on producing organic vegetables but has struggled with lower-than-expected yields. Raymond Chabot is the proposal trustee.
Wisp Internet Services, a Port Perry, Ontario-based internet service provider, filed an NOI on August 29, listing $8.5 million in liabilities. Focusing on providing high-speed internet services to thousands of residents in rural Ontario, the company attributes its financial difficulties to heavy storm damage to its tower network that caused internet service outages. This in turn led to a loss of customers and costly repairs to its tower network. The company intends to file a proposal to its creditors in the coming months which includes a restructuring of its operations. Dodick Landau was appointed proposal trustee.
3070 Ellesmere Developments, an Ontario corporation that owns a vacant parcel of land municipally known as 3070 Ellesmere Road, Scarborough, Ontario, filed an NOI on August 20, listing $29.4 million in liabilities. The property was purchased in January 2014 with the intention of developing a 26-storey residential condominium tower. Within 6 months, the company had sold 80% of the units and needed a partner who could assist in implementing the planning and construction aspects of the project. A joint venture agreement was struck with 2518358 Ontario Inc. ("Rise"). The company's relationship with Rise has broken down, with the company alleging that Rise failed to inject the necessary equity and failed to advance the project, including securing construction financing and commencing construction. The company also alleges that Rise has blocked the company's attempts at advancing joint venture discussions with alternative partners. The company intends to sell the property through a stalking horse sales process while under creditor protection. Co-Stone Development and Campus Suites together are acting as the stalking horse purchaser. Crowe Soberman was appointed proposal trustee. FAAN Advisors is the proposed Chief Restructuring Advisor. Cassels Brock is counsel for the company.
Groupe Capitales Médias, a Quebec City, Quebec-based media company, filed an NOI on August 19, listing approximately $25.9 million in liabilities, including $8.0 million to Investissement Québec. The company was created in 2015 to purchase all the daily newspapers outside of Montreal that were at the time owned by Gesca, a Power Corporation entity. The newspapers are Le Soleil (Québec), Le Quotidien (Saguenay), Le Nouvelliste (Trois Rivières), La Tribune (Sherbrooke), La Voix de l'Est (Granby) and Le Droit (Ottawa). The sole shareholder is Martin Cauchon, a former Federal Minister of Justice. Attributing its financial difficulties to an erosion of advertising revenue to global digital players such as Facebook and Google, and to a lesser extent lower circulation, the company has been unprofitable in the past three years and has run out of cash. PwC is the proposal trustee and interim receiver and will be launching a sales process for the business in September. Counsel is Stikeman Elliott for IQ, DS Avocats for the company and McCarthy Tétrault for PwC.
Yukon Zinc, a Vancouver, British Columbia-based company that owns the Wolverine Mine in the Yukon Territory, filed an NOI on July 31, listing $16.4 million in liabilities. The NOI filing comes a day before the hearing of the Government of Yukon's petition to appoint a receiver over the company. The Government of Yukon has grown increasingly concerned about the continually deteriorating condition of the mine site, as well as the company's failure to pay approximately $25.0 million in security outstanding since May, 2018. Over the company's objections, the court has granted a limited lifting of the stay to allow the Government of Yukon to proceed with its application to appoint a receiver. Alvarez & Marsal is the proposal trustee. PwC is the proposed receiver. Counsel is Fasken for the company, BLG for the proposal trustee and Dentons for the proposed receiver.
Carrot Insights, a Toronto, Ontario-based technology company that has developed the popular Carrot Rewards app, filed an NOI on July 11, listing $11.4MM in liabilities. Launched in 2015, the company grew to over one million registered users and won numerous awards and recognition, including the 2017 Canadian App of the Year by MobileSyrup. Users earned points from loyalty reward programs such as Aeroplan and Scene Points for attaining walking goals and completing surveys. Despite growing revenues to approximately $6.7MM in 2018, the company was not yet profitable and began to face funding challenges in the late summer/early fall of 2018. Attempts to raise capital were unsuccessful, and in March 2019, the company engaged EY Orenda to attempt to market its business for sale. In June 2019, to conserve cash, the company ceased operating the app and laid off all of its employees. While under creditor protection, the company will continue with the sale process, albeit in a more stabilized environment. EY is the proposal trustee. Counsel is Loopstra Nixon for the company and DLA Piper for the proposal trustee.