Tri-Ag Implements, a Wainwright, Alberta-based agriculture equipment supplier, filed an NOI on February 10, listing $15.4 million in liabilities, including $4.7 million to CNH Industrial Capital Canada, $3.7 million to Farm Credit Canada, $2.8 million to De Lage Landen and $2.7 million to Encompass Credit Union. A few days prior to the NOI filing, on February 6, an interim receivership order was granted over the assets subject to FCC's security. FCC provides the company with floor plan financing and became worried when it was discovered that at least five pieces of machinery had recently been sold without the sale proceeds being remitted to FCC. The Bowra Group is the proposal trustee. EY is the interim receiver. Counsel is Reynolds Mirth Richards & Farmer for the company and Sharek Logan & van Leenen for FCC.
Air Georgian, Toronto, Ontario-based regional aircraft operator, filed an NOI on January 31. The company operated over 62,000 regional flights per year on behalf of Air Canada through a capacity purchase agreement. This contract, however was not renewed on January 31. While under creditor protection, the company will look to secure a new business relationship. KPMG is the proposal trustee. Counsel is GSNH for the company, Chaitons for proposal trustee and Dentons for the senior secured lender.
Freemark Apparel Brands, a Montreal, Quebec-based retail company that operated Bench stores across Canada, filed an NOI on January 21, listing $41.0 million in liabilities, including $15.1 million to Accord Financial, $4.5 million to Gordon Brothers, and $1.5 million to Briva Financial. According to reports, the company will be shutting down all 24 of its brick-and-mortar stores as part of the restructuring and will shift its focus to the e-commerce side of its business. Richter is the proposal trustee.
Tough Mudder Events, the Canadian subsidiary of a US-based company, Tough Mudder, which organizes endurance events involving obstacle courses in the mud, filed an NOI on December 30. The US-based company has been ensnared in a shareholder dispute which has negatively affected its operations. On January 7, Valley Builders, Trademarc Associates, and David Watkins Homes - certain of the company's US creditors, which are owed in excess of $855.0 thousand - filed an involuntary petition for Chapter 11 bankruptcy in the US. The Canadian NOI was filed to stay creditors and allow the company to close an anticipated transaction for the non US-based businesses. Farber is the proposal trustee. TGF is counsel to the company.
8318085 Canada, a Montreal, Quebec-based company which designs, imports and distributes women’s outerwear garments, its main focus being coats, filed an NOI on December 17, listing $10.8 million in liabilities, including $2.1 million to RBC and $1.1 million to Jiangsu Sainty Glorious Trade. Several factors led to the company’s insolvency, including a reduction in sales as well as the introduction of a new software system that resulted in inaccurate reporting of the business’ performance. Although the company is currently still in operation, it must promptly complete its activities related to the spring and winter 2020 seasons - such as booking orders and making purchases - in order to maintain viability. As part of the restructuring, the company will undergo a sale and solicitation process to market the business to potential acquirers, investors, or strategic partners. KPMG is the proposal trustee. Kugler Kandestin is counsel to the company.
CMS Toys/Halloween Alley, an Edmonton, Alberta-based toy distributor and novelty retailer, filed an NOI on December 16, listing $8.1 million in liabilities. The Bowra Group is the proposal trustee.
Star Navigation Systems Group (CSE: SNA), a Brampton, Ontario-based company that develops products and technologies for the aviation industry, filed an NOI on December 11, listing $3.5 million in liabilities. Since earlier this year, a group of dissident shareholders have been attempting to requisition a meeting of shareholders to replace the current board. In each instance, the requisition has been invalid. On December 11, the company's CEO and chairman of the board, Viraf Kapadia, attempted to access the company premises but his key card no longer worked. His access was then physically barred by one of the dissident shareholders. It appears as though the dissident shareholders seized the company in reliance of a meeting of shareholders held at 8 am in which the board was purportedly replaced. In addition to filing the NOI, Kapadia sought an injunction restoring the status quo for the company until the court has had a chance to assess the validity of the latest purported shareholder meeting. Farber is the proposal trustee. Norton Rose Fulbright is counsel for Kapadia.
Prendiville Industries, owner of a sawmill in Kenora, Ontario that operates under the business name Kenora Forest Products, filed an NOI on December 5, listing liabilities of approximately $28.7 million, including $13.7 million to CIBC. The company produces high quality softwood lumber that is principally exported to customers in the United States. In 2017, the US imposed softwood lumber duties on products imported from Canada. To date, the company has had to pay duties totaling approximately $9.0 million. Also in 2017, the company's two main kilns, used to dry lumber products, were destroyed in a fire, resulting in significant capital expenditures as well as lost revenues at a time when lumber prices were high. Lumber prices have since fallen and remain very depressed. Together, these factors have depleted the company's working capital. Operations have ceased and cannot resume without fresh capital. To that end, the company will initiate a sales and investment solicitation process while under creditor protection. EY is the proposal trustee. Cafa Corporate Finance is the company's financial advisor. Counsel is Thompson Dorfman Sweatman for the company, MLT Aikins for CIBC and Pitblado for BDC.
Viafoura, a Toronto, Ontario-based technology company that provides an audience engagement platform for media, broadcast, and entertainment brands, filed an NOI on December 1. Founded in 2012, the company has not yet achieved profitability and is averaging a cash burn of approximately $325.0 thousand per month. On November 29, the company was unable to fund its payroll, and secured lenders National Bank and Espresso Capital advised that they were not prepared to advance additional funding to the business. Requiring an immediate injection of capital to restore employee confidence and maintain the value of the business, the company filed an NOI and negotiated a DIP loan from one of its preferred shareholders, Intercap. KSV is the proposal trustee. Counsel is DLA Piper for the company and Intercap, Chaitons for the proposal trustee and BLG for National Bank.
Barrymore Furniture, a Toronto, Ontario-based manufacturer and retailer of high-end furniture with a history dating back to 1919, filed an NOI on November 29, listing $7.5 million in liabilities, including $3.7 million to HSBC and $454.5 thousand to BDC. Historically, the company achieved revenues of over $10.0 million in each of its fiscal years ended April 30, 2017 and 2018. From late 2018 to the fall of 2019, however, the company experienced a dramatic reduction in sales which caused substantive liquidity issues. In the last few months the company has been operating at unsustainable monthly losses and became overdrawn on its operating loan facility. The NOI filing is intended to give the company temporary relief from creditors to allow it to carry on business through the holiday season and canvas the market for potential buyers of its business and/or assets. Farber is the proposal trustee. Counsel is Loopstra Nixon for the company, Chaitons for the proposal trustee, TGF for HSBC and Lipman Zener & Waxman for BDC.