Terra Nova Construction, a Calgary, Alberta-based construction company, was placed in receivership on May 17 on application by RBC, owed approximately $5.5MM. In addition to its failure to comply with its financial reporting requirements and its failure to advise the bank of any unfavourable change in its financial position, RBC suspected that the company had opened up another bank account for its day-to-day banking with a different financial institution, in breach of its loan agreement. Grant Thornton was appointed receiver. Counsel is McMillan for the applicant and Parlee McLaws for the company.
Inara, an Edmonton, Alberta-based company which owns and operates a Quality Inn Hotel in Whitecourt, Alberta, was placed in receivership on May 3 on application by ATB Financial, owed approximately $1.1MM. The 81 room hotel was opened in 1956. In addition to the $1.1MM owed to ATB, Inara also owes the Town of Whitecourt approximately $452.6M in unpaid property taxes, penalties and interest. Hardy & Kelly was appointed receiver. Dentons is counsel for the applicant.
189 Dundas Street West, owner of the property municipally known as 189 Dundas Street West in Mississauga, Ontario, had its property placed in receivership on May 3 on application by West End Motors and Trailer Park Limited (collectively "WEM"). WEM sold the property to 189 in February 2017 for $12.1MM, a sale partially financed by a $9.0MM vendor-take-back mortgage. A second mortgage of approximately $5.7MM was registered over the property on the same date, with those proceeds intended to finance both the purchase of the property and soft costs to be incurred prior to the construction financing of the condominium project. 189, which the applicants allege appears to be connected to Fortress Real Developments, began missing payments on the VTB mortgage in March 2018 and a demand for repayment was made shortly thereafter. The second mortgagees made payments against the first mortgage in order to protect their position but ultimately, after several delays and over the objections the second mortgagees, a receivership order was granted. Rosen Goldberg was appointed receiver. Counsel is Blaney McMurtry for the applicant, Laishley Reed for the company, Dickinson Wright for the receiver and Corsianos Lee for the second mortgagees.
Trident Exploration, a Calgary, Alberta-based natural gas production company, was placed in receivership on May 3 on application by the Alberta Energy Regulator's Orphan Well Association. The AER had been in discussions with the company since February 2019 regarding its financial difficulties as well as a potential debtor-led restructuring of the company's business and operations. On April 29, the company advised the AER that it may be unable to continue operations at its licensed sites. The AER responded by issuing an order directing the company to address end-of-life obligations associated with 4,400 energy licensed sites, either by decommissioning those sites, posting financial security or transferring the sites to responsible energy companies. With no funds to even enter into creditor protection, the company ceased operations the next day, terminating its 33 employees and 61 contractors and leaving its wells to the care of the AER, including proximately 1,500 wells that were not shut-in and continue to produce. It is estimated that the company's abandonment and reclamation obligations total approximately $329.0MM. The company also owes its secured lenders an additional $90.0MM and has unpaid property taxes of over $2.0MM. In the interest of public safety, the Orphan Well Association applied for a receiver to be appointed to ensure that the company's wells are properly cared for and maintained and shut-in where necessary. The Orphan Well Association is also hoping that, where possible, wells and other oil and gas assets can be sold to responsible producers to avoid having further assets designated as orphan wells. PwC was appointed receiver. Counsel is BLG for the applicant, Norton Rose Fulbright for the company, Bennett Jones for the receiver, Torys for Aimco, Blakes for ATB Financial and Brownlee for Stettler and Woodlands Counties
2507448 Ontario, a Toronto, Ontario-based company had its property municipally known as 581 Wellington Street West in Toronto, Ontario placed in receivership on May 3 on application by First Source Financial Management, owed approximately $3.5MM. The property is currently under construction, although construction has stalled since approximately July 2018 due to the company's inability to obtain additional financing; a second and third mortgage, together totaling approximately $2.8MM, are also registered against the property. The company's principal, Del Terrelonge, advises that he requires an additional $600.0M in further financing in order to complete his intended construction project. RSM was appointed receiver. Counsel is Paliare Roland Rosenberg Rothstein for the applicant and Torkin Manes for the receiver.
Solo Liquor Stores, a Calgary, Alberta-based liquor retailer, was placed in receivership on May 1 on application by ATB Financial, owed approximately $29.5MM. Founded in 1996, the company has grown to become the largest private liquor retailer in Alberta with over 40 locations across the province. The company has been experiencing significant cash flow issues for a number of months and was in default on its loans to both ATB and Crown Capital. Pursuant to a forbearance agreement with ATB, the company engaged Eight Capital to run a sales process for the business but no transaction was completed. Anticipating a shortfall on its loan, ATB decided that the appointment of a receiver would be the most efficient and cost-effective manner to maximize recoveries. FTI was appointed receiver. Counsel is Blakes for the applicant, McCarthy Tétrault for the company, Torys for the receiver and MLT Aikins for Crown Capital.
Ventana Windows & Doors Inc., a Toronto, Ontario-based vinyl window and door manufacturer, was placed in receivership on April 25 on application by RBC. BDO was appointed receiver. Aird & Berlis is counsel for for the applicant.
Best Made Toys International, a Toronto, Ontario-based manufacturer of plush toys for the wholesale market, was placed in receivership on April 23 on application by BMO, owed approximately $30.1MM. Founded in 1952, the company supplied products to major North American retailers such as Walmart, Target and Kroger but recently had been unable to meet customer demand due to manufacturing and supply chain disruption, which led to widespread order cancellations, penalties, large accounts receivable write-offs and lost future business. A sales process was conducted in March but failed to generate any bids for the business. Deloitte was appointed receiver. Counsel is BLG for the applicant and Goodmans for the company.
Heavy North Construction, an Edmonton, Alberta-based civil construction company, was placed in receivership on April 16 on application by 1056420 Alberta Ltd., owed approximately $2.4MM. KPMG was appointed receiver. Counsel is Bennett Jones for the applicant, Blakes for ATB and Osler for the receiver.
Student Federation of the University of Ottawa, the former official students' union representing undergraduate students of the University of Ottawa, was placed in receivership on April 15 by its own application. Formed in 1969, the federation uses fees collected from the approximately 36,000 undergraduate students to operate various businesses, service centers and social programming for the benefit of its members and other individuals frequenting the university campus. In September 2018, the university terminated its agreement with the federation as a result of allegations of financial mismanagement. A referendum was subsequently held in February 2019 and students voted for a new student union to represent them. With no role to fill on campus, the federation applied for a receiver to develop and then implement an action plan to affect a legal and operational unwinding of the federation. PwC was appointed receiver. Counsel is Dabrowski Joseph for the applicant and Dentons for the receiver.