Pettos Maintenance Service Ltd. (“Pettos”) filed a NOI on December 1, 2021. Pettos has been providing condominium janitorial services since 1968 and is based out of Mississauga, Ontario. Due to the rising minimum wage, increased insurance costs, low margins, the volatile nature of contracts being undercut and the believed substantial CRA obligations due to alleged negligence of a former employee, Pettos identified the need to wind down operations. Pettos intends to complete an asset sale transaction including the transfer and retention of approximately 100 employees by the purchaser in the NOI proceeding. BDO is the proposal trustee. Counsel for the proposal trustee is WeirFoulds and counsel for Pettos is Keyser Mason Ball.
YA-SEEN 19 ENTERPRISES INC. o/a Buck or Two Plus!, a Mississauga, Ontario-based franchised retail dollar store, filed an NOI on November 19, listing $180,000 in secured liabilities and $272,000 in unsecured liabilities. The COVID-19 pandemic and competition from a nearby rival dollar store resulted in reduced revenue and constricted cash flows. As a result, the company found itself unable to purchase inventory and fell into arrears for occupation rent with its landlord. BDO is the proposal trustee. Counsel is Keyser Mason Ball for the company.
11157337 Canada Corp. and its fully-owned subsidiary, H12 Brands Inc. (collectively, the “H12 Companies”), filed NOIs on November 19, 2021. The H12 Companies operate a cannabis-focused consumer packaged goods business, utilizing innovative product design and creative branding. The H12 Companies intend to complete an asset sale transaction in the NOI proceedings. EY is the proposal trustee. Counsel is Weisz Fell Kour for the H12 Companies and Miller Thomson for the proposal trustee.
ChronoMétriq Inc. and Health Myself Innovations Inc., Montreal, Quebec-based companies in the healthcare sector, each filed an NOI on October 26, collectively listing approximately $9.2 million in liabilities, including approximately $3.2 million of tax debt and approximately $2.9 to CIBC. ChronoMétriq, which operates under the trade name Pomelo Health, provides various software platforms to assist clinics, hospitals and governments with services which include online appointment booking and management of queues. Health Myself Innovations was acquired by ChronoMétriq in the fiscal year ended June 30, 2020. It operates an online portal to enable patients and service providers to interact online and interacts with electronic medical records. The purpose of the NOI proceedings is to facilitate a going concern sale through a SISP. Richter is the proposal trustee. Counsel is Miller Thomson for the companies, McCarthy Tétrault for the proposal trustee and Chaitons for CIBC.
Junction Craft Brewing Inc., a Toronto, Ontario-based craft beer brewery, filed an NOI on October 15, listing approximately $3.8 million in liabilities, including $843.0 thousand to Farm Credit Canada. The company was founded in 2011 by Tom Paterson and Doug Pengelly with a mission to create high-quality, hand-crafted beers. In 2018, the business moved to its current location in a former City of Toronto 1930's art-deco incinerator, affectionately known as 'The Destructor", which was decommissioned in the 1980s and used for raves in the 1990s. Richter is the proposal trustee. Counsel is Chaitons for the company and Aird & Berlis for the proposal trustee.
Tomavo Inc., a Moncton, New Brunswick-based fresh food market, filed an NOI on October 7, listing approximately $3.4 million in liabilities. KPMG is the proposal trustee.
Ben & Tournesol Ltée, Westmount, Quebec-based gift shop, filed an NOI on September 9, listing approximately $300,000 in liabilities. MNP is the proposal trustee.
Artex Systems Inc., a Concord, Ontario-based manufacturer of architectural precast wall panels for buildings primarily in the United States, including large-scale condominiums and public use buildings, filed an NOI on September 1, listing approximately $1.4 million in liabilities. The company experienced severe cash flow problems arising from deteriorating market conditions, as well as a confluence of cash demands on several concurrent projects. As a result, the company fell behind on its payments to creditors, government payroll remittances, as well as its obligations to TD, its primary secured lender. The company's sole project at this time is in Manhattan. The company has projected that if it completes this project and can collect outstanding holdbacks from other jobs, it will have sufficient funds to fully repay the outstanding priority source deduction obligations, its indebtedness to TD, as well as repay a significant portion of its unsecured debt. Spergel (GRIP) is the proposal trustee. Weisz Fell Kour is counsel for the company.
Mississauga Metals & Alloys Inc., a Brantford, Ontario-based metal recycling company, filed an NOI on July 20, listing approximately $27.7 million in liabilities, including $15.9 million to Scotiabank. In 2019, the Canadian Nuclear Safety Commission ("CNSC") issued an order to the company requiring it to cease managing radioactive waste at its facility until the CNSC had accepted an updated radiation protection program. Richter is the proposal trustee.
L'Univers du Modulaire Inc., a Sherbrooke, Quebec-based general contractor filed an NOI on July 12, listing approximately $6.7 million in liabilities, including $3.9 million to the Business Development Bank of Canada. Among other services, the company provides general contracting services in connection with the construction of modular houses and complexes. MNP is the proposal trustee.