Voice Construction, an Edmonton, Alberta-based civil construction company, was placed in receivership on June 25 on application by Maynbridge Capital, owed approximately $35.9MM. Maynbridge, which took an assignment of the company's loan from a syndicate of lenders in January 2019, has been working with the company on the terms of a transaction that would address the company's immediate liquidity needs and improve its capital structure. Although negotiations continued to progress, by mid-June 2019 the company's liquidity position deteriorated to the point that an injection of capital was required in the immediate term. The company instead took steps to wind down its business operations, terminating staff and advising customers of the wind-down of its business. Fearing that the company's equipment would be exposed to potential possessory liens of trade contractors, Maynbridge sought the appointment of a receiver to preserve and realize on the assets in an orderly manner. Alvarez & Marsal was appointed receiver. Counsel is BLG for the applicant, Osler for the company and Miller Thomson for the receiver.
Alaskan Water Seafood, a Brampton, Ontario-based seafood supplier was placed in receivership on June 24 on application by RBC, owed approximately $1.0MM. In March 2019, the accounts of the company were transferred to RBC's special loans group because its risk profile had deteriorated. RBC expressed concerns about, among other things, improprieties with respect to the completion of borrowing base certificates and late reporting. The company acknowledged its financial difficulties, which it attributed to rising competition, but its attempts to refinance its business and/or attract an equity partner have been unsuccessful and recent information provided to RBC has increased the bank's concerns about the deteriorating financial position of the company. Grant Thornton was appointed receiver. Counsel Minden Gross for the applicant and KMB Law for the company.
United Construction Company, an Acheson, Alberta-based general contractor, was placed in receivership on June 21 on application by Trisura Guarantee Insurance Company, owed approximately $2.7MM. Trisura, the company's surety on projects throughout Alberta, has been called upon to make payments to subcontractors, suppliers and labourers on various bonded projects. The company filed an NOI on June 6, with EY acting as proposal trustee, in response to Trisura's formal demand for repayment on May 29, but the stay has been lifted and a receivership order granted in favour of Trisura. Grant Thornton was appointed receiver. Counsel is Field Law for the applicant, McMillan for the receiver, Sharek & Co for the company and Dentons for TD.
Homes By Design, a company developing and constructing a 3 storey, 26 unit residential condominium complex with underground parking in Perth, Ontario, was placed in receivership on June 20, on application by HarbourEdge Mortgage Investment Corporation, owed approximately $28.8MM. The company was unable to repay its loans to HarbourEdge and the Court appointed Fuller Landau as receiver for the purpose of developing and carrying out a marketing and sales process for the property. Counsel is Victor Vandergust Professional Corporation for the applicant and Minden Gross for the receiver.
Station Point Developments, a company developing and constructing a 112 unit rental residential apartment in Edmonton, Alberta, was placed in receivership on June 17 on application by Kingsett, owed approximately $11.9MM. Construction of the project commenced in 2016 but has been plagued by a host of problems including being behind schedule, cost overruns, builders' liens being registered against the property and a litigious dispute between the developer and its general contractor, Fortis LGS Structures. The company was unable to repay its loan to KingSett when it matured in February 2019 and KingSett is unwilling to fund the estimated $6.9MM that is required to complete the project without the appointment of a trustee who has the ability to obtain construction advances from KingSett on a secured and first priority basis. KSV was appointed receiver. Counsel is McCarthy Tétrault for the applicant and Bennett Jones for the receiver.
Paserium Corporation, owner of a series of condominium units in a mixed retail/commercial/residential project in Calgary, Alberta, was placed in receivership on June 13 on application by RBC, owed approximately $7.4MM. After a series of defaults in 2018, RBC intended to proceed by way of a foreclosure proceeding but soon realized that this alone would be insufficient to adequately protect the bank's security. Shortly after listing the properties for sale, RBC learned that the condominium was facing significant building repair issues. Additionally, one of the condo units that Paserium owns has been subdivided into approximately 70 rooms and is operated by Paserium as a business centre with shared office services and staff. RBC therefore decided that it would be best to appoint a receiver that could serve on the condo board and evaluate, and potentially operate, the business centre while the units were marketed for sale. Grant Thornton was appointed receiver. BLG is counsel for the applicant.
Octopus Holdings, a Calgary, Alberta-based company that owns 40 units of a partnership owning a hotel and resort on the Island of St. Lucia in the West Indies, was placed in receivership on June 13 on application by the partnership's general partner, East Winds Resorts Ltd. Various of the partners, including Octopus Holdings, have been in litigation since 2014 relating to the operation of the resort, which has a history of incurring operational losses. In November 2018, the general partner took an assignment of a loan to Octopus Holdings' from BNS which was in default. In May 2019, it demanded repayment of the $5.0MM owing. The amount has not been repaid, and the general partner is now seeking to acquire the units through a stalking horse sales process. Hardie & Kelly was appointed receiver. Counsel is DLA Piper for the company and Parlee for the receiver.
Holistic Blend, a Mississauga, Ontario-based manufacturer of natural organic pet food and pet health care products, was placed in receivership on June 12 on application by Bridging Income Fund, owed approximately $2.4MM. Despite routinely being unable to fund payroll, rent and production, the company maintained the support of Bridging for several years with promises of significant sales growth. Recently, however, it has become evident that this growth is not materializing, and the latest balance sheets and income statements show that the company is insolvent on a balance sheet and cash flow basis. On May 14, the company advised Bridging that it would stop selling pet food and focus on pet health supplements only. Having lost faith in the company's ability to manage its business, Bridging subsequently demanded repayment. BMO, owed $807.0M by the company, also did so shortly thereafter. KSV was appointed receiver. Counsel is Chaitons for the applicant, MacDonald Sager Manis for the company and Aird & Berlis for the receiver.
Petrocapita Oil and Gas, a Calgary, Alberta-based oil and gas exploration company with operations in Alberta and Saskatchewan, was placed in receivership on June 11 on application by Safeway Holdings, owed approximately $8.1MM. The company attempted to sell its assets informally earlier in the year with the assistance of Sayer Energy Advisors but was unsuccessful, and it has admitted that it cannot repay the amounts due and owing to Safeway. Hudson & Company (GRIP) was appointed receiver. Counsel is Burnet, Duckworth & Palmer for the applicant, Bennett Jones for the company and Dentons for the receiver.
Waterway Houseboats, a Sicamous, British Columbia-based houseboat vacation business, was placed in receivership on June 11 on application by CIBC. A 2012 flood caused significant damage to the company's waterfront property and forced it to borrow heavily to repair its marina and upgrade its fleet. Two months after the flood, the company sued the province, the local district and neighbouring landowners. The case went to trial earlier this year and on April 16, the court issued its judgment. Although successful, the quantum of damages awarded was far less than what was needed and expected by the company. Alvarez & Marsal was appointed receiver. Counsel is Blakes for the applicant and Gowling WLG for the receiver.