Kate Energy Holdings Inc., a Calgary, Alberta-based power producer, was placed in receivership on July 13 on application by Campus Energy Partners LP ("Campus"), owed approximately $10.8 million. In 2019, the company and Campus entered into 1) an LNG Supply Agreement whereby the company agreed to purchase liquified natural gas from Campus, and 2) an equipment lease agreement whereby the company agreed to lease a trailer from Campus. However, the company failed to comply with the express terms of the supply agreement and equipment lease agreement when it did not make payments to Campus when due. Hudson & Company (GRIP) Insolvency Trustees was appointed receiver. Counsel is Torys for Campus and Dentons for the receiver.
Southmount Healthcare Centre Inc. and certain affiliated companies (collectively, the "Debtors"), which together owned and operated seven medical office buildings and a parking lot across Ontario, were placed in receivership on June 29 on application by American General Life Insurance Company, Lexington Insurance Company and The Variable Annuity Life Insurance Company (collectively, the "Applicants"), owed approximately $68 million. In 2016, the Debtors owned three medical office buildings. The Applicants advanced a loan to the Debtors in the principal amount of $70 million to allow the Debtors to purchase four more medical office buildings and a parking lot and to refinance the three buildings that were already owned. The Debtors have failed to make a payment under the loan since December 2019, before the COVID-19 pandemic. KPMG was appointed receiver. Counsel is Blakes for the Applicants, Norton Rose for the receiver and Weisz Fell Kour for the legal owners of the properties.
Sunrise Acquisitions (Hwy 7) Inc., the owner of the Unionvillas townhome development project in Markham, Ontario (the "Project"), was placed in receivership on June 9 on application by KingSett Mortgage Corporation ("KingSett"), owed approximately $2 million. Since 2015, KingSett has provided senior secured financing to the company to enable the development of the Project, which comprises 52 built townhomes. In addition to KingSett, the other primary financing source for the Project was a syndicated mortgage financing arranged by Fortress Real Developments Inc. and administered through Sorrenti Law. In May 2021, the company defaulted under its loan facility with KingSett by failing to make a required interest payment, which remains unpaid to date. KingSett has lost faith in the company's management and wishes to exercise its rights to appoint a receiver to market and sell the company's assets and properties. KSV was appointed receiver. Counsel is Bennett Jones for the receiver, Cassels for the applicant, and Osler for FAAN Mortgage Administrators Inc., in its capacity as trustee of Sorrenti Law.
Olds Institute for Community & Regional Development and Olds Fibre Ltd. (o/a O-NET), two related Olds, Alberta-based telecommunication companies, were placed in receivership on June 25 on application by the Town of Olds (the "Town"), owed approximately $14 million pursuant to two loans extended by the Town so that the companies could install a high-speed fibre optic cable through the Town. BDO was appointed receiver. Brownlee is counsel to the Town.
Certus Automotive Inc. and Keen Point International Inc., which provide engineering, manufacturing, and distribution services with respect to specialized chrome plating products for the automotive industry, were placed in receivership on June 25 on application by TD, owed approximately $10.3 million (CAD) and $7.4 million (USD). The companies operate their business through a group of 12 companies known as the "Certus Automotive Group", with facilities located in Ontario, Michigan, Texas, China, Mexico, and Germany. The companies incurred significant and unexpected costs, losses, delays, and quality control problems associated with the construction and initial operations of the plant located in Mexico. Despite being granted a forbearance agreement by TD, the companies have repeatedly defaulted under this agreement and have also failed to close either a financing or sale of their assets. In November 2019, the companies entered into loan arrangements (the "FGI Loan") with FGI Worldwide LLC ("FGI"). In connection with the FGI Loan, TD agreed to subordinate its security interest against the companies' assets and properties to FGI, except as against certain machinery and equipment. TD has lost confidence in the companies and is especially concerned about the developments surrounding the Mexican plant. Deloitte was appointed receiver. Counsel is Miller Thomson for the applicant, Bennett Jones for the companies, Dentons for the receiver, and Blakes for FGI.
Roxdale Gardens Ltd., a Calgary, Alberta-based real estate company, was placed in receivership on June 24 on application by a group of applicants (collectively, the "Preferred Shareholders"), including Cantech Oilfield Equipment Ltd. and King Chi Hung. The Preferred Shareholders invested approximately $3.4 million in the company. These investment funds were collateralized by way of a $10 million mortgage registered against two parcels of land in Leduc County, Alberta (the "Lands"). The Lands were to be the site of a luxury residential real estate development scheme called the "Roxdale Gardens Project". The Preferred Shareholders allege that they have been oppressed through the actions of the company and claim, among other things, that the company's former directors withheld dividend payments owing to the Preferred Shareholders and failed to use the investment funds to develop the Lands. FTI was appointed receiver. Fasken is counsel to the Preferred Shareholders.
1436126 Alberta Ltd. o/a Morinville Plaza & Suites, which owns a mixed-use commercial and residential building located in Morinville, Alberta, was placed in receivership on June 22 on application by Peace Hills Trust Company ("Peace Hills"), owed approximately $1.4 million pursuant to a term loan extended by Peace Hills to the company. The Bowra Group was appointed receiver. Parlee McLaws is counsel to Peace Hills.
0751380 B.C. Ltd. dba Sunshine Contracting, a Terrace, BC-based construction company, was placed in receivership on June 22 on application by TD, owed approximately $185 thousand. The company lists $168.1 thousand in assets. BDO was appointed receiver. Harper Grey is counsel to the applicant.
Pulse RX Inc. and Family Pharmacy Clinic Inc., Woodbridge, Ontario-based companies which carry on business as a pharmacy focusing on servicing long term care and retirement residences, were placed in receivership on June 10 on application by 1951584 Ontario Inc. (dba Maxium Financial Services), owed approximately $1.4 million pursuant to a fixed rate promissory note between the companies and the applicant's predecessor in title, Desante Financial Services Inc. The companies have not made any payments to the applicant since June 2020. MNP was appointed receiver. Counsel is Wilson Vukelich for the applicant and Weisz Fell Kour for the receiver.
Randhawa Group of Companies ("RGC"), which runs a trucking, warehousing, and logistics business, was placed in receivership on June 7 on application by Swinderpal Singh Randhawa, who has been in a dispute with the respondent Rana Partap Singh Randhawa concerning the ownership, operation, and sale of RGC since 2018. KSV Advisory was appointed receiver. Counsel is Stikeman Elliott for the applicant and Cassels for the receiver.