Skyline 2 Productions Inc.

Skyline 2 Productions Inc., an Ontario and BC-based film production company that produced the series "Ed Quinn Vs.", was placed in interim receivership on August 17 on application by The Forest Road Company ("FRC"), owed aaproximately $1.4 million (USD) pursuant to a loan which is secured by both a GSA and the assignment of certain tax credits. FRC had agreed to advance the loan on the basis that the company was entitled to and would receive tax credits from the British Columbia Production Services Tax Credit and Canadian Federal Production Services Tax Credit. In accordance with the terms of the loan, the company assigned the tax credits and their proceeds to FRC. The loan has now come due and the company has failed to repay the loan. Furthermore, despite the fact that the tax credits and their proceeds were assigned to FRC, the company has failed to provide any information regarding the status of the tax credit proceeds to FRC. As a result of the company's various breaches and defaults under the terms of the loan and the lack of cooperation from its management, FRC has lost trust and confidence in the company. MNP was appointed interim receiver. Miller Thomson is counsel to the applicant.

La Granaudière

La Granaudière, a Saint-Michel-des-Saints, Quebec-based wood pellet production plant, was placed in receivership on August 5 on application by Investissement Québec ("IQ") and Desjardins, owed approximately $37.3 million pursuant to various term credits and an $8 million loan that was extended to the company under the ESSOR Program, which provides limited-time support for the working capital of eligible companies. The company's operations are not profitable, with the selling prices of pellets dropping below the cost of production. In July, the company advised IQ and Desjardins that it no longer has the liquidity required to continue operations. Raymond Chabot was appointed receiver. Counsel is Norton Rose Fulbright for the company, Lavery for IQ, and Langlois for Desjardins.

Stratford Petroleum Inc.

Stratford Petroleum Inc., a Stratford, Ontario-based company that owns and operates an Ultramar gas station and related convenience store in Stratford, was placed in receivership on July 9 on application by BMO, owed over $2.5 million. BMO, which provided a real estate financing loan to the company, began to have concerns in January 2021 when the company missed a payment. The company's financial results were also a concern with gas volumes down 60% from projections and convenience store sales down 70%. After BMO learned that the gas station was under a conditional agreement of purchase and sale ("SPA"), BMO demanded repayment for all amounts outstanding from the company. However, the SPA did not close on the expected date and the company's principals advised BMO that the sale process was "stuck" because the company's gas supplier refused to waive a right of first refusal in connection with the business. At present, there is no closing date and the loan has been in default for six months. Rosen Goldberg was appointed receiver. Chaitons is counsel to BMO.

Victoria Avenue North Holdings Inc.

Victoria Avenue North Holdings Inc., the legal owner of two medical office buildings in Hamilton, Ontario, had a receiver appointed over its assets on August 3, on application by American General Life Insurance Company and the National Union Fire Insurance Company of Pittsburgh, PA (collectively, the "Applicants"). On March 30, 2015, the Applicants advanced a loan to the company in the principal amount of $24.5 million to fund the purchase of the medical office buildings. As at June 30, 2021, the total amount of principal and interest outstanding on the loan was approximately $22.9 million. The company has failed to make a regularly scheduled payment under the loan since March 2020. KPMG was appointed receiver. Counsel is Blakes for the Applicants, Norton Rose for the receiver and Weisz Fell Kour for the company.

Mohawk Trail Properties Inc., 2317159 Ontario Inc., and Mohawk Inn & Suites Management Inc.

Mohawk Trail Properties Inc., 2317159 Ontario Inc., and Mohawk Inn & Suites Management Inc., a related group of primarily land holding companies based in Toronto and Milton, Ontario, had a receiver appointed over their assets on August 3, on application by Cortland Credit Lending Corporation as agent for certain lenders. Mohawk Trail Properties Inc. was the borrower under the loan agreement, while 2317159 Ontario Inc. and Mohawk Inn & Suites Management Inc. provided guarantees. Starting in June 2019, as a result of certain material breaches and defaults (including monetary defaults) under the loan agreement, the parties entered into a series of forbearance agreements. However, the companies have been unable to repay the loan and, as of July 23, 2021, owed approximately $17 million to the lenders. A sale process for the companies' assets was approved on the same day that the companies were placed in receivership. PwC was appointed receiver. Counsel is Dentons for Cortland Credit Lending Corporation and Stikeman Elliott for the companies.

Shamrock Valley Enterprises Ltd. (“Shamrock”)

Shamrock Valley Enterprises Ltd. (“Shamrock”), an Elk Point, Alberta-based provider of services in the form of general earthworks, oil and gas infrastructure, grading, road building, and fluid hauling, had a receiver appointed over its assets on application by Canadian Western Bank, owed approximately $3.9 million. The Receivership Order was granted on July 30, but stayed by the Court of Queen’s Bench of Alberta until August 27, 2021, when a further Order was granted lifting the stay. The Bowra Group Inc. was appointed receiver. Counsel is McLellan Ross for Canadian Western Bank.

Kate Energy Holdings Inc.

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.

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

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)

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.