Galarneau Entrepreneur Général Inc.

Galarneau Entrepreneur Général Inc. and various related entities (collectively, the "Galarneau Group"), a Rouyn-Noranda, Québec-based group of companies offering drilling and blasting, crushing, paving, civil engineering, transportation and snow removal services to clients working in the mining, municipal and industrial fields, each filed an NOI on December 9. The Galarneau Group employs between 150 and 300 employees at any given time to meet customer demand. In the current and previous fiscal years, Galarneau Entrepreneur Général Inc. suffered an operating loss of more than $19 million, due primarily to the completion of 5 loss-making projects, as well as the effects of the COVID-19 pandemic. Galarneau Entrepreneur Général Inc., which has more liabilities than any of the other entities within the Galarneau Group, lists approximately $48.1 million in liabilities, including approximately $12.9 million to Caisse Desjardins. On December 29, the Québec Court issued a reverse vesting order approving a transaction between the Galarneau Group and 9422-8806 Québec inc. (a related party to Duroking Construction). MNP is the proposal trustee. Stikeman Elliott is counsel for the companies, Miller Thomson is counsel for the purchaser, Davies is counsel for secured creditor Caisse Desjardins de Rouyn-Noranda, McCarthy Tétrault is counsel for unsecured creditor Desjardins Capital de Risques and Morency is counsel for supplier Équipements Morri 7 Inc. By Dina Milivojevic

Payslate Inc.

Payslate Inc., a federally incorporated technology company that operates an online rental payment processing service for property owners and managers, filed an NOI on December 5, listing approximately $5.1 million in liabilities. The company is extra-provincially registered in British Columbia and Alberta, and also operates in the US through its wholly-owned subsidiary, RentMoola Payment Solutions LLC. The company's 21 employees, the majority of whom are located in British Columbia, operate entirely on a remote basis, and the company has no physical premises. The company began operations in April 2013 and, since that time, has incurred consolidated operating losses of approximately $39.4 million, primarily as a result of the company's inability to generate sufficient revenue or sufficient gross margins from revenue to cover its operating expenses. The company introduced a convertible note offering in an attempt to raise financing while it restructured its operations, but raised significantly less than the $4 million required. Grant Thornton is the proposal trustee. BLG is counsel for the company. By Dina Milivojevic

Jimmy Guaco’s Inc., 2359374 Ontario Inc., 8091463 Canada Inc., and 2798497 Ontario Inc. (collectively “Jimmy Guacos”)

Jimmy Guaco’s Inc., 2359374 Ontario Inc., 8091463 Canada Inc., and 2798497 Ontario Inc. (collectively “Jimmy Guacos”) each operated a restaurant franchise as part of a chain of Mexican inspired grills operating under the brand name of Jimmy Guaco’s. Three of the restaurants closed as they could not meet their cash flow obligations as they were coming due. The Whitby location remains open. The other Jimmy Guaco’s restaurant franchise legal entities each filed NOIs on December 5, 2022. In addition, on December 6, 2022, Jimmy Guaco’s Franchising Inc., which was incorporated in June 2020 for the purpose of selling franchises under the “Jimmy Guaco’s” restaurant brand, was assigned into bankruptcy. The attempt to launch franchises while Covid-19 continued, along with poor advice received from outside franchising consultants, and the inability to finance losses realized by underperforming locations, collectively contributed to the insolvency for the restaurant chain. Dodick Landau is the proposal trustee. Goldman Sloan Nash & Haber is counsel to the proposal trustee. By Dina Milivojevic

Nilex USA Inc. (“Nilex USA”)

Nilex USA Inc. ("Nilex USA"), a wholly-owned subsidiary of Nilex Inc., a Calgary-based construction company operating in the geosynthetics industry which is already subject to proposal proceedings, filed an NOI on November 24. Nilex USA operates from leased premises in Utah and Colorado and has approximately eight employees. In October 2021, Nilex Inc. engaged Valitas Capital Partners to conduct a sales process, which ultimately resulted in the acceptance of a bid for a going-concern sale of substantially all of the companies’ business and assets to Terrafix Geosynthetics Inc. (the Canadian purchaser) and Hanes Companies, Inc. (the US purchaser), The purpose of the Nilex USA NOI filing is to allow the transaction for the US assets to be completed, and the proposal trustee intends to work with US counsel to commence Chapter 15 recognition proceedings. KSV is the proposal trustee. Counsel is Blakes for Nilex USA, Cassels for the proposal trustee and Norton Rose for CIBC, the senior secured lender. By Dina Milivojevic

Lightbox Enteprises Ltd. dba Dutch Love Cannabis

Lightbox Enteprises Ltd. dba Dutch Love Cannabis, a licensor and service provider with respect to the "Dutch Love" cannabis store brand, filed an NOI on November 1, listing approximately $16.4 million in liabilities, including approximately $6 million to George Melville Holdings, $3 million to Sundial Growers, approximately $2.3 million to DHM and $2 million to Milan Trpin. In May, the company unsuccessfully sought to enjoin a former franchisee from operating a competing business at two locations in Timmins and Brampton, Ontario, after the parties' business relationship fell apart. EY is the proposal trustee. Counsel is McMillan for the company. By Dina Milivojevic

Digitcom Telecommunications Inc.

Digitcom Telecommunications Inc., a national leader in voice and data communications with operations in Calgary, Vancouver, Markham and Montreal, filed an NOI on October 31. TD Bank, the company's senior secured lender, is owed approximately $3.5 million. The company intends to conduct a SISP to maximize recoveries for creditors. Grant Thornton is the proposal trustee. Counsel is Cassels for the proposal trustee, Dentons for TD Bank and Bennett Jones for the company. By Dina Milivojevic

Nilex Inc.

Nilex Inc., a construction company based in Edmonton, Alberta, filed an NOI on October 27, listing over $62 million in secured debt, including approximately $17.5 million to CIBC, its senior lender, and approximately $45 million to Fulcrum Capital Partners Inc. et al., as well as over $12 million in unsecured debt. The company's financial difficulties were brought on by several years of repeated losses, exacerbated by the pandemic, a slowing construction industry and increasing inventory costs. The purpose of the filing is to conduct a sales process, which is well advanced. KSV is the proposal trustee. Counsel is Blakes for the company, Cassels for the proposal trustee and Norton Rose for CIBC. By Dina Milivojevic

CannTrust Holdings Inc.

CannTrust Holdings Inc., an Ontario-based cannabis company, filed an NOI on October 18. The company and certain of its subsidiaries were previously subject to CCAA proceedings as a result of, among other things, the suspension of the company's cannabis licenses and the issuance of a cease trade order ("CTO") by the OSC. During the CCAA proceedings, the company obtained court approval to create a new wholly-owned subsidiary, CannTrust Equity Inc. (now Phoena Holdings Inc.) and to transfer to Phoena Holdings the ownership of its wholly-owned subsidiary, Phoena Inc., which was the primary operating entity of the CannTrust group of companies. Despite the implementation of the CCAA plan and the transaction, CannTrust Holdings remains subject to the CTO. To obtain a discretionary order from the OSC revoking the CTO, CannTrust Holdings would be required to cure its disclosure defaults under applicable securities laws, which would include restating certain historical financial statements and obtaining an audit opinion from a qualified independent auditor. The company determined that it was not feasible to do this before November 30 to revoke the CTO, and determined that it is in the best interests of its stakeholders to make a proposal to its creditors under the BIA to address its remaining liabilities, dispose residual assets, and dissolve before November 30. EY is the proposal trustee. Counsel is McCarthy's for the company and Aird & Berlis for the proposal trustee. By Dina Milivojevic

VOTI Detection Inc. (TSXV:VOTI) and VOTI Inc.

VOTI Detection Inc. (TSXV:VOTI) and VOTI Inc., a Saint-Laurent, Quebec developer of next generation x-ray security systems, each filed an NOI on October 12. VOTI Detection lists $3.4 million in liabilities to Espresso Capital Limited., while VOTI lists $10.5 million in liabilities, including approximately $477,000 to Spellman High Voltage. PwC is the proposal trustee. By Dina Milivojevic

SugarBud Craft Growers Corp., Trichome Holdings Corp., and 1800905 Alberta Ltd.

SugarBud Craft Growers Corp., Trichome Holdings Corp., and 1800905 Alberta Ltd., a Stavely, Alberta-based cannabis business, filed an NOI on September 26. Since receiving its cultivation licence and commencing its cannabis operation in August of 2019, Sugarbud has been cash flow negative for the entire history of its operations. Despite attempts to access additional financing or complete a strategic transaction, Sugarbud has faced a significant working capital deficit which makes it unable to pay its ongoing obligations as they become due. On September 22, Connect First Credit Union Ltd. ("CFCU"), the companies’ primary secured lender, demanded on its loan. Sugarbud has exceeded the amount currently available under its existing credit facility with CFCU and no longer has any available cash flow to fund its operations. CFCU has indicated that is only prepared to fund the companies on a super-priority basis through an NOI proceeding. A&M is the proposal trustee. Counsel is MLT Aikins for the companies, BDP for the proposal trustee and Dentons for CFCU. By Dina Milivojevic