HockeyShot Inc., a Mississauga, Ontario-based online specialty retailer of hockey training equipment, was placed in receivership on January 6, on application by Pivot Financial I Limited Partnership, owed approximately USD $1.1 million and CDN $2.5 million. After suffering operating losses and liquidity issues in 2021, the company engaged Welch Capital Partners to assist it to find a potential investor or buyer. These efforts were unsuccessful, and Pivot declared the entire amount of the loan due and payable on December 17. PwC was appointed receiver. Counsel is Chaitons for Pivot, Torkin Manes for the company and DLA Piper for the receiver.
13364097 Canada Inc. and Bao Ying Cao (collectively, the "Applicants") had a receiver appointed over certain funds (the "Contested Funds") on December 7. According to their factum, the Applicants are the innocent holders of approximately $1.3 million worth of Contested Funds as a result of a scheme (the “Sunrise Technology Scheme”) operated by the respondent Xiaodong Yang, which they now understand was a fraud. The Sunrise Technology Scheme involved the respondent Users of Sunrise Technology sending funds to the Applicants’ bank accounts under false pretenses. The Applicants sought an interpleader and receivership order to identify, account for, and distribute the Contested Funds back to those entitled to them. BDO was appointed receiver. Counsel is Polley Faith for the Applicants.
Ideal (BC) Developments Inc., the owner of certain vacant properties in Richmond Hill, Ontario, was placed in receivership on December 17, on application by C&K Mortgage Services Inc. and Canadian Western Trust Company, owed approximately $15.5 million. The properties are an assembly of development land which the company has been developing for construction of a residential community, consisting of 23 stacked townhomes and 49 freehold townhomes, although construction has not yet begun. The applicants' loan to the company matured on November 1 and has not been repaid. Alvarez & Marsal was appointed receiver. Counsel is Chaitons for the receiver, Dickinson Wright for the applicants and Friedman Law Corporation for the company.
Community Marine Concepts Ltd., Victoria International Marina Ltd., Eternaland Yuheng Investment Holding Ltd., and 0736657 B.C. Ltd., Vancouver Island, British Columbia based companies, were placed in receivership on December 13, on application by the Bank of Nova Scotia. The Bank provided the companies with a non-revolving term loan in the principal amount of $17,080,000 to provide bridge financing for the construction of a luxury yacht center in Victoria Harbour on Vancouver Island known as the Victoria International Marina. As at August 2021, when the petition was initially filed, the companies had been in default of their payment obligations for 15 months and remained indebted to the Bank in the amount of approximately $15.5 million, excluding fees and interest. The receivership order was granted on November 1 and provided that the companies would automatically be placed in receivership on December 13 unless the debt to the Bank was repaid in full prior to that date. Alvarez and Marsal was appointed receiver. Counsel is Blakes for the Bank and Crystal Law for the companies.
Go-To Developments Holdings Inc. ("GTDH") and various related entities (collectively, the "Go-To Group") were placed in receivership on December 10, on application by the Ontario Securities Commission ("OSC"). Between 2016 and 2020, GTDH and Oscar Furtado, the founder and directing mind of the Go-To Group, raised almost $80 million from Ontario investors for nine Go-To real estate projects by selling limited partnership units in the respondents. The projects are not complete, and the investors’ funds remain outstanding. On December 6, the OSC issued two freeze directions which require Furtado to maintain and refrain from imperilling assets derived from investor funds and require RBC Direct Investing to maintain the assets in Furtado’s RBC Direct Account. The freeze directions were continued and KSV was appointed receiver over the Go-To Group on December 10. Counsel is Aird & Berlis for the receiver and Torkin Manes and Miller Thomson for certain of the respondents.
665-671 Sheppard Avenue West Ltd., the owner of four adjoining parcels of land comprised of four unoccupied single family homes with frontage on Sheppard Street in Toronto (the "Mortgaged Property"), had a receiver appointed on December 6, on application by Dorr Capital, owed approximately $8.1 million. The proposed development on the Mortgaged Property is a five-storey residential building with 56 units. The company defaulted on its interest-only payments to Dorr Capital and allowed a lien to be registered on title to the Mortgaged Property. Rosen Goldberg was appointed receiver. Counsel is Blaney McMurtry for Dorr Capital and Dickinson Wright for the receiver.
Portliving Farms (3624 Parkview) Investments Inc. and various related entities, the owners of the Beachside Motel, the Sunny Beach Motel and the Waterfront Inn in Penticton, British Columbia, had a receiver appointed on November 29, on application by Prospera Credit Union, owed approximately $4.99 million. The Bowra Group was appointed receiver. Counsel is BHL Vancouver for the receiver.
Elcano Exploration Inc., Elcano Exploration Ltd. & Elcano Energy Partnership, Calgary, Alberta-based oil and gas companies, were placed in receivership on November 24, on application by Tallinn Capital Energy Corp., owed over $6 million. It appears that Tallinn intends to make a credit bid for the companies' Manitoba assets in the receivership proceedings. The companies did not oppose the receivership application, but sought approval of an order permitting the receiver to execute an RVO term sheet and market an RVO transaction being proposed by the companies, which would be funded by their outside investor. The receivership order granted does not appear to address the relief sought by the companies, and no endorsement appears to have been released at this point. Grant Thornton was appointed receiver. Counsel is Bennett Jones for the companies.
CUDA Energy Inc., CUDA Oil and Gas Inc., CUDA Energy LLC and Junex Inc. (collectively, "CUDA"), a Calgary, Alberta-based group of oil and gas companies with assets in Alberta and the State of Wyoming, had a receiver appointed on November 18, on application by PwC as receiver of Bridging Finance Inc. ("Bridging"), owed approximately $57 million. Bridging has been providing financing to CUDA since 2018. CUDA has engaged in several formal refinancing processes and asset sale processes since 2019 in an attempt to fund working capital requirements related to its US assets or to refinance the loan agreement. On July 9, the operator of the US assets issued a default letter and filed a lien against CUDA in the amount of approximately US $2 million for a failure to pay unit expenses under the operating agreement. This constitutes an event of default under the loan agreement with Bridging. As a result of the foregoing and various other issues outlined in Bridging's materials, Bridging and PwC as receiver of Bridging had serious concerns about the ability of management to continue the operations of CUDA and develop a plan for the repayment of the outstanding indebtedness. Chapter 15 proceedings will also be commenced in the State of Wyoming. FTI was appointed receiver. Counsel is DLA Piper for PwC as receiver of Bridging Finance Inc.; Blakes for Tallinn Capital Energy Limited Partnership, by its general partner, Tallinn Capital Energy Corp. (a subordinate secured creditor); and Bennett Jones for FTI in it capacity as receiver of CUDA.
Jam Hospitality Inc. and XS Lounge and Grill Ltd., operating as the Radisson Hotel and Conference Centre at the Calgary Airport, were placed in receivership on November 18, on application by ATB Financial, owed approximately $17 million. PwC was appointed receiver. Counsel is Norton Rose for ATB Financial.