Nascent (Tisdale) Inc., a real estate company with the primary purpose of servicing residential lots and constructing townhouse units in a building project located in Toronto, Ontario (the "Project"), was placed in receivership on March 31 on application by Fiera FP Real Estate Financing Fund, L.P. ("Fiera"), owed approximately $13.7 million under a loan between the parties pursuant to which Fiera agreed to provide senior construction financing to the company. The company committed various events of default under the loan, including failing to, among other things, respond to specific information requests made by Fiera, meet certain pre-sales requirements, and make all required equity injections into the Project. Fiera currently alleges that it is receiving incomplete and contradictory information about the company's re-financing efforts and it has seen nothing to date that indicates any material interest by another lender in the Project. Grant Thornton was appointed receiver. Counsel is DLA Piper for the receiver, Fogler Rubinoff for Fiera and Miller Thomson for the company.
Aluminart Products Limited, Arcor Windows & Doors Inc., and N.A.P. Windows & Doors Ltd., Ontario companies that manufacture and distribute storm doors, patio doors, and windows to retailers such as Loews and Home Hardware, were placed in receivership on March 29 on application by RBC, owed approximately $5.2 million (CAD) and $24.5 thousand (USD) under a loan agreement. Despite multiple forbearance extensions, the companies have yet to repay their indebtedness to RBC. In addition, the companies failed to deposit $475.0 thousand into their RBC bank accounts as promised. msi Spergel (GRIP) was appointed receiver. Counsel is Minden Gross for the applicant, Miller Thomson for the companies, Harrison Pensa for the receiver, and Lipman Zener Waxman for BDC.
Société en commandite Industriel-Léger ("SEC"), a limited partnership set up for the purpose of managing and operating real estate holdings located in Magog and Sherbrooke, Quebec — along with its general partner, 9058-0150 Québec Inc. — were placed in receivership on March 26 on application by FWCU Capital Corp. ("FW Capital"), owed approximately $12.4 million. In July 2016, FW Capital entered into a loan agreement with Kanwal Inc. ("Kanwal") on the condition that SEC guarantee the obligations and liabilities of Kanwal. As a result of various defaults by Kanwal under this loan agreement, FW Capital demanded payment of Kanwal's indebtedness from SEC. FW Capital, which has not received any payments since 2018, alleges that Kanwal and SEC consistently pursued refinancing with a third party, Waygar Capital, despite being aware that it was objected to by FW Capital. MNP was appointed receiver. Counsel is Robinson Sheppard Shapiro for FW Capital and Fishman Flanz Meland Paquin for the receiver.
1465770 Alberta Ltd. o/a Westlake Husky, a Lloydminster, Alberta-based company that operates a gas station and convenience store, was placed in receivership on March 24 on application by RBC, owed approximately $1.2 million. EY was appointed receiver. Counsel is Dentons for RBC and DLA Piper for the receiver.
Morris Group of Companies, which consists of four Saskatchewan-based companies and an American branch in the business of manufacturing and distributing farm equipment, had its sale to 102114983 Saskatchewan Ltd. in the CCAA proceedings (the "MEL Transaction") approved and a receiver was appointed to carry out the final administrative duties and satisfy the conditions of the MEL Transaction. BMO also brought applications for bankruptcy for certain entities in the Morris Group of Companies (the "Dormant Companies"). Since the bankruptcy orders were granted, the CCAA proceedings will be terminated in regard to the Dormant Companies and a bankruptcy trustee will be appointed. Alvarez & Marsal was appointed receiver and bankruptcy trustee. Counsel is McDougall Gauley for the Group, Burnet, Duckworth & Palmer for BMO, and MLT Aikins for Alvarez & Marsal.
2607380 Ontario Inc., which was in the business of developing and operating a multi-purpose commercial building located in Burlington, Ontario, was placed in receivership on March 18 on application by Meridian Credit Union Limited, owed approximately $18.5 million. In February 2020, the company obtained protection under the CCAA, with Meridian providing DIP financing during the proceedings. The DIP facility agreement contained certain milestone dates in connection with the SISP being run in the CCAA proceedings. However, the company did not meet these requirements and, on January 19, 2021, counsel to Meridian issued a default notice. As of March, the company had not provided Meridian with a prospect of a firm commitment for a refinancing or a sale transaction. As a result, it served an application seeking to terminate the CCAA proceedings and have msi Spergel (GRIP) appointed as receiver. Counsel is Gowling WLG for Meridian, Stikeman Elliott for the company, Bennett Jones for Richter, the monitor, Chaitons for Bridging Finance Inc., McCarthy Tétrault for Maynbridge Capital Inc., and Weirfoulds for Crossroads Christian Communications.
AVAD Canada Ltd., the Canadian operating affiliate of the North American business of AVAD, a wholesale distributor of a variety of electronic equipment and accessories, was placed in receivership on March 17 on application by MidCap Funding IV Trust ("Midcap"). The company owes approximately $498.0 thousand under a Credit Agreement between MidCap (as agent), certain lenders, and the company and its affiliates. As a result of various events of default under the Credit Agreement, the security granted by the company under the Credit Agreement has become immediately enforceable and the obligations owing under the Credit Agreement by the company are due and payable. The company's material tangible assets in Canada consist of an inventory of electronic products and accessories located at leased warehouse facilities in Mississauga, Ontario and Calgary, Alberta. MNP was appointed receiver. Norton Rose Fulbright is counsel to the applicant.
Mamatas Real Estate Holdings Unlimited Liability Company, a Vancouver, British Columbia-based company that owns property at 3920 North Talbot Road and 5175 Ure Street, Tecumseh, Ontario (collectively, the "Real Property"), was placed in receivership on March 11 on application by BDC, owed approximately $4.8 million. Toolplas Systems Inc. ("TSI"), an affiliated company, operates from the Real Property pursuant to a lease with the company. In February, TD - a secured creditor of TSI - demanded repayment of certain indebtedness owing by TSI. In March, BDC issued a demand for payment from the company of its indebtedness. Fuller Landau was appointed receiver. Counsel is Chaitons for the applicant, Dickinson Wright for the company, and Miller Thomson for TD.
Orbit Freight Ltd., a Mississauga, Ontario-based freight transport and warehousing company, was placed in receivership on March 11 on application by TD, owed approximately $1.8 million. Spergel (GRIP) was appointed receiver. Counsel is Harrison Pensa for the applicant and Aird & Berlis for the receiver.
Toolplas Systems Inc., and Tool Processing Solutions Inc. (o/a TPS Global) (collectively the "Company"), two Oldcastle, Ontario-based manufacturing companies, were placed in receivership on March 3 on application by TD, owed approximately $18.1 million. The Company also owes approximately $5.9 million to BDC and a further $6.9 million to its unsecured creditors. Deloitte was appointed receiver and manager. Miller Thomson is counsel to the applicant.