Syncordia Technologies and Health Solutions (TSX-V: SYN), a Toronto, Ontario-based investment firm focused on acquisitions and investments in the US healthcare space, was placed in receivership on April 6 on application by Deans Knight Capital Management, owed, along with certain other noteholders, approximately USD $14.3MM. Due to a decrease in cash flow from its portfolio companies, Syncordia has been unable to service its debt. Waivers were obtained through 2016 and 2017. Pursuant to these waivers, the company was required to divest of certain of its investments to pay down its debt. These divestitures were not completed and in April 2018 the noteholders demanded repayment. Grant Thornton was appointed receiver. Counsel is Cassels Brock for the applicant.
HCT Metal Manufacturing, a Calgary, Alberta-based company, was placed in receivership on April 4 on application by Canadian Western Bank. EY was appointed receiver. Counsel is Faskens for the applicant and Walsh Law for the company.
Floridus, a Mississauga, Ontario-based importer and distributor of Christmas décor, permanent botanicals, and home and garden décor, was placed in receivership on April 3 on application by RBC, owed approximately $3.0MM (CAD) and $3.8MM (USD). RBC decided to demand payment on their loan agreement on account of the company experiencing cash flow difficulties and breaching its debt service coverage ratio. The company is winding down operations and looking to sell its assets as part of the wind down process. James Williams & Associates was appointed receiver. Counsel is Minden Gross for the receiver, BLG for the applicant, and Karl J. Veldkamp and Caldwell Barristers for the company.
Storm Rentals, a Whitecourt, Alberta-based oilfield service and rental company, was placed in receivership on March 21 on application by RBC. BDO was appointed receiver. MLT Aikins is counsel to the applicant.
665670 NB, a Baie Verte, New Brunswick-based company, was placed in receivership on March 20 on application by RBC. BDO was appointed receiver.
Wheeler Funeral Home, Cemetery and Crematorium, based in Winnipeg, Manitoba, was placed in receivership on March 20 on application by Timothy Price and certain other related parties. According to a recent CBC story, funds and records are missing for 48 people who prepaid for funeral services, totaling $121.0M. Lazer Grant (ICIN) was appointed receiver. Counsel is Thompson Dorfman Sweatman for the applicant.
Skymark Properties 1, a Toronto, Ontario-based real estate management company, was placed in receivership on March 19 on application by B & M Handelman Investments et al., owed approximately $2.9MM. In July 2017, Sprint Senior Care—the only tenant in the company's building—commenced litigation against the company, seeking a declaration that it had breached the terms of their lease as well as damages. In particular, Sprint alleged that the company failed to maintain the property, causing it be in a continuous state of disrepair. The court granted an order entitling Sprint to set off from various rent obligations which the company had failed to fulfill. All of the applicants' dealings in respect of the property have been with Ara Missaghi, an authorized representative of the company. Missaghi was arrested in February in connection with a mortgage fraud investigation. Rosen Goldberg was appointed receiver. Chaitons is counsel to the applicants.
BionX Canada, an Aurora, Ontario-based company that designs, manufactures and sells electronic propulsion systems for bicycles, was placed in receivership on February 27 on application by Stronach Consulting, owed approximately $21.9MM. In February 2018, as the company's financial situation was deteriorating, General Motors - who was a primary customer - notified the company that it was considering commencing a claim for $5.3MM (USD) for alleged breaches of their purchase contract. In addition to these existing financial difficulties, the company failed to find a purchaser of its shares or assets. Stronach was subsequently unwilling to provide further funding to the business outside of a receivership proceeding to market. During the proceedings, it will provide funding of approximately $1.3MM to administer the receivership and execute the proposed sales process. Grant Thornton was appointed receiver. Counsel is Stikeman Elliott for the applicant, Cassels Brock for the company, Speigel Nichols Fox for GM and Brauti Thorning Zibarras for the receiver.
Western Precast Group, a Spruce Grove, Alberta-based company that designs and builds precast concrete products, was placed in receivership on February 7 on application by ATB Financial, owed approximately $5.1MM. Grant Thornton was appointed receiver. McCarthy Tétrault is counsel to the applicant.
ReidBuilt, an Edmonton, Alberta-based private homebuilder, was placed in receivership on November 2 on application by RBC, owed approximately $64.6MM. ReidBuilt Worldwide, the parent company, has been struggling with debt problems for months, and will be seeking letters of intent from potential buyers until the end of the month. The court has granted an order that will allow the receiver, Alvarez & Marsal, to complete pending home sales and finish construction of houses. Counsel is Dentons for the applicant and Norton Rose Fulbright for the receiver.