Restoration Energy, an Airdrie, Alberta-based home maintenance and repair company, was adjudged bankrupt on September 14 on application by Grant Thornton, the receiver of Crystal Wealth Enlightened Factoring Strategy, owed approximately $1.5MM. The Bowra Group is the bankruptcy trustee. MLT Aikins is counsel to the applicant.
Boss Logo Print & Graphics, a Markham, Ontario-based trade printer was placed in court-appointed receivership on September 4, on application by TD, owed approximately $3.3MM. The company then filed for bankruptcy on September 14. Established in 1995, the company evolved into an industry leader in online trade-printing services. Despite recently purchasing additional presses and other equipment, the company has been unable to recover from the financial difficulties it experienced over the past several years. MNP is the receiver and bankruptcy trustee. Counsel is Aird & Berlis for TD and Lerners for MNP.
Sameh Sadek, an individual based in Brampton, Ontario, had his domestic assets, undertakings and properties, including several pharmacies, placed under receivership on September 11 on application by AstraZeneca Canada. The applicant anticipates that the receiver will exercise its powers to investigate and trace the substantial funds which appear to have been transferred out of Sadek's accounts to other local and overseas accounts, including to Egypt. The receiver will also secure and take possession of Sadek's assets, including two residential homes, and then commence a process to market and sell those assets. Alvarez & Marsal was appointed receiver. Counsel is Blakes for the applicant and Aird & Berlis for the receiver.
Niska North, a Chapleau, Ontario-based company that carries on business as a sawmill manufacturing cedar lumber products, was placed in receivership on August 24 on application by Northern Ontario Heritage Fund Corporation, owed approximately $2.1MM. The company ran into business difficulties in 2008 almost immediately after it purchased a sawmill plant formerly owned by Domtar, citing unfavourable market conditions and lack of profitability. In December 2010, the company completely ceased operations, shutting down the sawmill and laying off all its staff. While the company's manager has made several efforts over the last seven years to find a buyer, they have been unsuccessful and the sawmill is currently abandoned. The court approved a sales process for the sawmill and appointed A. Farber & Partners as receiver.
Nazeema Rajabali Professional Corporation, a Calgary, Alberta-based dental practice, was placed in receivership on August 23 on application by RBC, owed approximately $1.3MM. In July, the corporation defaulted on its obligations under its loan agreements with RBC by failing to make payments on time. The current financial situation of the corporation, as well as its inability to pay debts as they become due, seriously impairs its viability and negatively impacts the value of RBC's collateral. To date, the corporation has not responded to any of RBC's demand letters. Grant Thornton was appointed receiver. MLT Aikins is counsel to the applicant.
Athanasios Kouremenos Pharmacien, a Montreal, Quebec-based pharmacy, was placed in receivership on August 9 on application by National Bank, owed approximately $2.0MM. In February, Athanasios Kourmenos testified before the disciplinary council of the Quebec Order of Pharmacists, where he plead guilty to 44 charges, including receiving rebates and making illegal claims. PwC was appointed receiver. McCarthy Tétrault is counsel to the applicant.
Safety Seal Plastics, a Guelph, Ontario-based supplier of shrink sleeve labels and other specialty printed products to the sports nutrition, craft beer, food and other industries, was placed in receivership on August 7 on application by HSBC, the company's secured lender. The company also received a $1.5MM loan from BDC as well as equipment financing from RBC and Hewlett-Packard Financial Services Canada. In January 2018, Deloitte was retained as financial consultant to HSBC and determined that the company was out of margin on its credit facilities by approximately $1.1MM. The company's board of directors had also discovered that the company's then-president had repeatedly provided them and the shareholders with misleading financial information, documents and statements, and had misappropriated company funds for personal purposes and caused the company to enter into various transactions with parties related to him. These dealings contributed to the company's current liquidity crisis. In February 2018, the company ended its relationship with this individual, and, while under a forbearance agreement, sought to effect a refinancing or investor transaction. The process led to the company entering into a letter of intent for Labelink Products to acquire substantially all of the company's assets pursuant to a receivership proceeding. Deloitte was appointed receiver. On the same date, the court approved the transaction with Labelink. Counsel is TGF for the applicant, Chaitons for the company, Goldman, Sloan, Nash and Haber for Deloitte and Aird & Berlis for RBC.
Union Waterfront, a Richmond Hill, Ontario-based corporation that owns two real properties located at 12 Lakeport Road and 16 Lock Street in St. Catharines, Ontario, was placed in receivership on August 3 on application by FirstOntario Credit Union, who provided the company with a $10.0MM business loan. On June 12, FirstOntario issued a formal demand on the company for payment of all outstanding indebtedness under the loan. The company failed to comply with this demand and did not offer any proposal to FirstOntario. msi Spergel (ICIN) was appointed receiver. Counsel is Scarfone Hawkins for the applicant and Simpson Wigle Law for the receiver.
Hatsize Learning, a Calgary, Alberta-based provider of cloud-based training solutions for various computer software products, was placed in receivership on August 3 on application by BMO, owed approximately $1.2MM. Deloitte was appointed receiver. Gowling WLG is counsel to the applicant.
Park Terrace Development, a company owned by Harvey Ambrose that owns real property at 8923 Chippawa Creek Road, Niagara Falls, Ontario, had its property placed in receivership on August 2 on application by Romspen Investment, owed over $139.0MM. Rosen Goldberg was appointed receiver. Dickinson Wright is counsel to the applicant.