Greencore Composites, a Sarnia, Ontario-based manufacturer of natural fiber reinforced thermoplastic materials, was placed in receivership on April 16, listing approximately $1.2MM in liabilities. Growthworks Commercialization Fund, Wayne Meddever and Ian Inch appointed Dodick Landau as private receiver.
4 Birchmount Road, a vacant, detached two-storey home in Toronto, Ontario, was placed in receivership on April 13 on application by B & M Handelman Investments et al., owed approximately $900.0M. The funds were initially advanced to Christine Drotos and secured by a second mortgage against the property. When Drotos failed to repay the funds when the mortgage matured, Ara Missaghi offered to purchase the applicants' loan. This transaction was never completed. Instead Missaghi made partial payments on the mortgage. In addition, Missaghi represented that he was continuing to service the first mortgage on the property, which was owing to Pillar Capital Corporation (not to be confused with Pillar Capital Corp. out of Calgary, Alberta), a lender which appears to be owned or controlled by Missaghi. A recent mortgage statement provided to the applicants by Pillar, however, did not reflect any credit for the interest payments which Missaghi allegedly made. Concerned that Missaghi may have inflated the amounts claimed to be due and owing pursuant to the first mortgage in an attempt to prejudice their recovery under the second mortgage, the applicants' moved to appoint a receiver to sort through the various encumbrances registered against the property. Rosen Goldberg was appointed receiver. Dickinson Wright is counsel for the applicants.
Control Mobile, a Vancouver, British Columbia-based technology company, was placed in receivership on April 12 on application by the McDonnell Group, owed approximately $508.6M. Founded in 2014 and backed by Vanedge Capital and BDC Capital, the company provides an analytics platform for online businesses to manage and analyze their online transaction data and quickly grew to over 25.0M customers. Despite its growth, the company recently ran into cash flow difficulties. In January 2018, the company accepted a secured promissory note from the McDonnell Group, but defaulted on the note soon after. Crowe MacKay was appointed receiver. Counsel is Fasken for the applicant and Farris for the company.
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.