Certus Automotive Inc. and Keen Point International Inc., which provide engineering, manufacturing, and distribution services with respect to specialized chrome plating products for the automotive industry, were placed in receivership on June 25 on application by TD, owed approximately $10.3 million (CAD) and $7.4 million (USD). The companies operate their business through a group of 12 companies known as the "Certus Automotive Group", with facilities located in Ontario, Michigan, Texas, China, Mexico, and Germany. The companies incurred significant and unexpected costs, losses, delays, and quality control problems associated with the construction and initial operations of the plant located in Mexico. Despite being granted a forbearance agreement by TD, the companies have repeatedly defaulted under this agreement and have also failed to close either a financing or sale of their assets. In November 2019, the companies entered into loan arrangements (the "FGI Loan") with FGI Worldwide LLC ("FGI"). In connection with the FGI Loan, TD agreed to subordinate its security interest against the companies' assets and properties to FGI, except as against certain machinery and equipment. TD has lost confidence in the companies and is especially concerned about the developments surrounding the Mexican plant. Deloitte was appointed receiver. Counsel is Miller Thomson for the applicant, Bennett Jones for the companies, Dentons for the receiver, and Blakes for FGI.
Roxdale Gardens Ltd., a Calgary, Alberta-based real estate company, was placed in receivership on June 24 on application by a group of applicants (collectively, the "Preferred Shareholders"), including Cantech Oilfield Equipment Ltd. and King Chi Hung. The Preferred Shareholders invested approximately $3.4 million in the company. These investment funds were collateralized by way of a $10 million mortgage registered against two parcels of land in Leduc County, Alberta (the "Lands"). The Lands were to be the site of a luxury residential real estate development scheme called the "Roxdale Gardens Project". The Preferred Shareholders allege that they have been oppressed through the actions of the company and claim, among other things, that the company's former directors withheld dividend payments owing to the Preferred Shareholders and failed to use the investment funds to develop the Lands. FTI was appointed receiver. Fasken is counsel to the Preferred Shareholders.
1436126 Alberta Ltd. o/a Morinville Plaza & Suites, which owns a mixed-use commercial and residential building located in Morinville, Alberta, was placed in receivership on June 22 on application by Peace Hills Trust Company ("Peace Hills"), owed approximately $1.4 million pursuant to a term loan extended by Peace Hills to the company. The Bowra Group was appointed receiver. Parlee McLaws is counsel to Peace Hills.
0751380 B.C. Ltd. dba Sunshine Contracting, a Terrace, BC-based construction company, was placed in receivership on June 22 on application by TD, owed approximately $185 thousand. The company lists $168.1 thousand in assets. BDO was appointed receiver. Harper Grey is counsel to the applicant.
Pulse RX Inc. and Family Pharmacy Clinic Inc., Woodbridge, Ontario-based companies which carry on business as a pharmacy focusing on servicing long term care and retirement residences, were placed in receivership on June 10 on application by 1951584 Ontario Inc. (dba Maxium Financial Services), owed approximately $1.4 million pursuant to a fixed rate promissory note between the companies and the applicant's predecessor in title, Desante Financial Services Inc. The companies have not made any payments to the applicant since June 2020. MNP was appointed receiver. Counsel is Wilson Vukelich for the applicant and Weisz Fell Kour for the receiver.
Randhawa Group of Companies ("RGC"), which runs a trucking, warehousing, and logistics business, was placed in receivership on June 7 on application by Swinderpal Singh Randhawa, who has been in a dispute with the respondent Rana Partap Singh Randhawa concerning the ownership, operation, and sale of RGC since 2018. KSV Advisory was appointed receiver. Counsel is Stikeman Elliott for the applicant and Cassels for the receiver.
O2 Industries Inc., a Kitchener, Ontario-based company that designs and sells personal respirators for consumer, healthcare, and military/law enforcement markets, was placed in receivership on May 27. The company has experienced severe financial challenges as a result of declining sales, revenues, and substantial unsold inventory. The onset of the COVID-19 pandemic had created substantial demand for personal protective equipment ("PPE"), including masks and respirators. However, the company experienced a drastic decline in sales volumes as consumer demand for PPE peaked and the market became saturated with excess supply. Despite the bridge financing provided by lenders, the company has been unable to to execute on its business plan to attract additional capital from new investors or generate liquidity from the sale of product inventory. As part of the receivership proceedings, the receiver will solicit proposals for a sale of the company's business and assets. RSM Canada was appointed receiver. Goodmans in counsel for the applicant.
Queen Mary Park Place Ltd., which owned and operated a commercial strip mall located in central Edmonton, Alberta, was placed in receivership on May 26 on application by CMLS Financial Ltd., owed approximately $2.9 million. The Bowra Group Inc. was appointed receiver. BLG is counsel to the applicant.
Altmore Mortgage Investment Corporation, an Ancaster, Ontario-based company that pools together investor funds with funds from banks and other financial institutions to make investments in mortgages, bridge loans and builder advances, was placed in receivership on May 25 on application by Monica Matta and Mark Amello (collectively, the "Applicants"). Between 2015 and 2018, the Applicants made substantial investments in the company by subscribing for its shares. Pursuant to their investments, the Applicants were entitled to receive monthly dividend payments in an amount equal to 12.75% per year based on the amount invested. The company, which stopped paying monthly dividends to the Applicants in May 2019 without prior notice, eventually notified its shareholders that it had temporarily halted payment of dividends. Although it advised that such dividend payments would resume in September 2019, these payments never resumed and the Applicants have not received any dividends since May 2019. As of November 2020, the company has ceased communicating with the Applicants. BDO was appointed receiver. Miller Thomson is counsel to the Applicants.
Okje Cho & Family Enterprise Ltd. (“Okje”) and 2341567 Ontario Ltd. (“234 Ontario”) were placed in receivership on May 25 on application by Meridian Credit Union Limited (“Meridian”), owed approximately $7.77 million. 234 Ontario operates as a Hampton Inn by Hilton hotel franchise in Napanee, Ontario, and Okje owns the property from which the hotel operates. Due to the COVID-19 pandemic, Okje requested payment relief from its obligations in spring 2020. Meridian agreed, deferring principal and interest payments for a consensual period of time. Okje subsequently failed to make suitable repayment arrangements with Meridian and has not made payments under certain credit facilities since December 2020 and January 2021, as well as failing to repay a third credit facility by its maturity date in October 2020. In addition, royalties to the franchisor, Hilton Hotels, accruing municipal property taxes and harmonized sales tax have gone unpaid for a period of time, threatening operations. BDO Canada was appointed receiver. Counsel is Lipman, Zener & Waxman for Meridian and Loopstra Nixon for the receiver.