an early stage cannabis cultivation company that is in the process of building a facility in Chatham, Ontario, was placed in receivership on September 19 on application by Auxly Cannabis Group, owed approximately $16.2 million. The company's facility is approximately 90% complete and it has submitted its application for a cultivation license. The company's loan from Auxly, which was used to finance the acquisition of the Chatham land and the construction of the facility, matured in August 2019 and the company has been unable to refinance the loan or otherwise put forward a proposal acceptable to Auxly. Farber was appointed receiver. Counsel is Bennett Jones for the applicant and Siskinds for the company.
a Vancouver, British Columbia-based company that owns the Wolverine Mine in the Yukon Territory, was placed in receivership on September 13 on application by the Government of Yukon, which has grown increasingly concerned about the continually deteriorating condition of the mine site, as well as the company's failure to pay approximately $25.0 million in security outstanding since May 2018. On July 31, a day before the hearing of the Government of Yukon's petition to appoint a receiver over the company, the company filed an NOI, though a limited lifting of the stay was subsequently ordered to allow the Government of Yukon to proceed with its application to appoint a receiver. On September 5, a material adverse change was reported by the company's proposal trustee after the company failed to make certain forecast post-filing payments, including $618.0 thousand on account of projected remediation costs. PwC was appointed receiver and will be running a sales process for the company's assets, including the Wolverine Mine. Alvarez & Marsal is the proposal trustee. Counsel TGF for the applicant, Fasken for the company, Dentons for the receiver and BLG for the proposal trustee.
Belkin Holdings and certain other related companies were placed in receivership on August 2 on application by BMO, owed approximately $8.1 million. The companies' primary asset is a 6 story apartment building in Winnipeg, Manitoba referred to as Kelly Towers. The companies' management failed to respond in a timely fashion or at all to requests for financial and other information, and with its financial benchmarks deteriorating, RBC demanded repayment from the companies. MNP was appointed receiver. Bennett Jones is counsel for the applicant.
Westridge Cabinets, a Red Deer, Alberta-based cabinet manufacturer, was placed in receivership on August 16 on application by BMO, owed approximately $2.4 million. Attributing its financial difficulties to the consistent decline in housing starts in Alberta, the company filed an NOI on July 5 after its majority shareholder, Toronto-based Signal Hill Equity Partners, advised that it was no longer prepared to continue supporting the company's financial losses. While under creditor protection, the company began a wind-down of its operations. No proposal was filed by the company and on August 10 it was deemed bankrupt. BMO then moved for a receiver to be appointed to protect its interests. PwC was appointed receiver. Counsel is Dentons for the applicant, BLG for the receiver and TGF for Signal Hill.
R.D.E. Ventures, a Spruce Grove, Alberta-based equipment rental company, was placed in receivership on August 16 on application by National Bank, owed approximately $11.0 million. In March 2019, the then CFO of the company contacted National Bank requesting additional time to provide audited financial statements. By late April, the statements had not yet been provided, despite repeated assurances from the CFO that the statements were a day or two away from being delivered. In May, 2019, National Bank elevated the request for statements to the president of the company, who investigated and discovered that auditors had not even been hired. Concerned with this news, as well as the deteriorating financial position and defaults of the company, National Bank issued a demand for repayment on July 9, which triggered an NOI filing by the company. Further discoveries of funds being diverted to another financial institution, as well as a lack of a feasible restructuring proposal or plan, led National Bank to request that the proposal proceedings be terminated. FTI was appointed receiver. Counsel is McCarthy Tétrault for the applicant and Ogilvie for the company.
Machine Works Industrial, a Fort Saskatchewan, Alberta-based contractor specializing in welding and steel fabrication, was placed in receivership on August 13 on application by RBC, owed approximately $2.0 million. Deloitte was appointed receiver. Counsel is Burnet, Duckworth & Palmer for the applicant and Duncan Craig for the receiver.
D Films Corporation, a Toronto, Ontario-based independent Canadian film distribution company, was placed in privately appointed receivership on August 9 by Bank Leumi USA, owed approximately $3 million. The company focused on the acquisition and distribution of long-term exclusive rights of both motion picture and television content and made strategic investments with major global film producers including NBCUniversal and Miramax Films. The company had been experiencing losses and cash flow problems for some time, and with no further funds available to be injected from any source, Bank Leumi USA lost confidence in management. Ira Smith Trustee & Receiver was appointed receiver. Counsel is Goodmans for the secured creditor.
Skywell Homes, an Ottawa, Ontario-based home builder, was placed in receivership on August 8, on application by Cardar Investments, owed approximately $2.7 million. The company had already filed for bankruptcy on October 9, 2018. Prior to bankruptcy, the company was in the process of applying for a land severance application in respect of two single dwelling homes. The severance application was needed in order for the properties to be sold separately. In order to ensure the application was not impacted and in order to maximize value for a potential disposition of the two properties separately, Cardar waited until the severance application was granted in July before proceeding with the receivership application. PwC was appointed receiver. Counsel is Brauti Thorning for the applicant and Blakes for the receiver.
2547357 Ontario Inc., owner of the property municipally known as 365 Bayly Street West, Ajax, Ontario, was placed in receivership on August 7 on application by a group of secured creditors owed approximately $2.6 million. The company's property is a vacant piece of land on which the debtor had planned to build a car dealership. The debtor subsequently failed to make interest payments on the loan due to its bank account being frozen. When counsel for the applicants proposed a consensual arrangement to sell the property through CBRE, it learned that the debtor had already signed an exclusive listing agreement with another brokerage. Concerned that it would be cumbersome, if not impossible to achieve a sale of the property on a consensual basis, the applicants moved to have a court-supervised officer appointed to properly market and sell the property. Rosen Goldberg is the receiver. Counsel is Dickinson Wright for the applicants.
Bearstone Environmental Solutions, a Calgary, Alberta-based oil and gas and environmental services company, was placed in receivership on August 6 on application by Nations Fund I, owed approximately $5.1 million. The depressed oil and gas prices experienced since 2014 have had a significantly negative effect on Bearstone's business, especially its fluid transportation business in Grande Prairie. Recently, the production curtailment program mandated by the Government of Alberta in November 2018 resulted in a drastic decline in activity, and in December 2018 the decision was made to cease operations at the Grande Prairie location. In consultation with its secured lender, Bearstone's parent company has structured a transaction to sell Bearstone's vacuum and water truck services businesses, as well as its environmental services business, to a related company. The transaction will be completed through the receivership. KPMG was appointed receiver. Counsel is Bennett Jones for the applicant, Osler for the company and Cassels Brock for the receiver.