Our summaries of recent Canadian insolvency filings.
October 14, 2021
Norman Prior Nodwell, who operates a mixed farming operation near Biggar, Saskatchewan, had an interim receiver appointed over all of his livestock, forage and feed on October 14, on application by BMO, owed approximately $2.2 million. On September 29, the Animal Protection Services Branch of the Government of Saskatchewan issued a Corrective Action Order against Mr. Nodwell, requiring him to provide his livestock with supplemental feed to improve the livestock's body condition and to humanely euthanize or provide veterinary care to distressed animals. On October 6, an agent of BMO inspected the farm and discovered that the bison are in poor condition, Mr. Nodwell had recently euthanized a number of bison, Mr. Nodwell does not maintain an inventory of his cattle and bison, Mr. Nodwell's bison are unmarked and unidentifiable and Mr. Nodwell's pastures are in extremely poor condition. Deloitte was appointed interim receiver. Counsel is MLT Aikins for BMO and Cuelenaere LLP for Mr. Nodwell.
October 12, 2021
Axess Pickering Ltd., the owner of real property located at 1525 Pickering Parkway in Pickering, Ontario (the "Property"), had a receiver appointed over all of its assets on October 12, on application by C & K Mortgage Services Inc. (carrying on business as Rescom) and 975393 Ontario Inc., the company's senior secured creditors. The Property is a vacant 1.273 acre parcel which is being developed for construction of 336 units, in two residential condominium towers and approximately 26,000 square feet of office/restaurant space. On September 1, there was a default in the payment of interest under the charge on the Property, and no payments have been received since that date. Alvarez & Marsal was appointed receiver. Counsel is Dickinson Wright for the applicants.
October 12, 2021
Mahal Venture Capital Inc. ("Mahal") and Golden Miles Food Corporation ("Golden Miles"), Brantford, Ontario-based companies, had a receiver appointed over their assets owned or used in connection with a flour mill located on 155 Adams Blvd., Brantford, Ontario (the “Real Property”). The application was brought by Skymark Finance Corporation, owed approximately $29 million. Mahal is the registered owner of the Real Property and, once completed, Golden Miles was to operate the flour mill located at the Real Property. KSV was appointed receiver. Counsel is Chaitons for Skymark Finance Corporation, Kirwin Partners for the companies and Blakes for the receiver.
October 7, 2021
Medifocus Inc. (TSX-V:MFS), a Maryland, US-based biotechnology company incorporated under the Ontario Business Corporations Act, obtained protection under the CCAA on October 7. The company holds a portfolio of medical products used in treating cancerous and benign tumors and enlarged prostates. Due to the COVID-19 pandemic, many of the routine treatments which require Prolieve - one of the company's central products - have been delayed. As a result of decreased demand for Prolieve, as well as COVID-related supply chain disruptions, Medifocus has halted the sales of Prolieve since May 2021. On September 4, 2020, the Ontario Securities Commission issued a cease trade order against the company for failure to file certain periodic disclosures. The company filed an NOI on September 8. It then had its NOI proceeds continued under the CCAA to maximize the value of its business while it runs a SISP. Spergel (GRIP) was appointed monitor. Counsel is Weisz Fell Kour for the company and Aird & Berlis for the monitor.
October 6, 2021
Bidvine Inc., a Guelph, Ontario-based software development services company that is wholly-owned by a UK company, Bidvine Limited, filed an assignment in bankruptcy on October 6, due to the UK division being placed into administration. Founded in 2014, the company's premise was to make “hiring local, trusted service professionals ridiculously simple”. Liabilities are listed at approximately $100,000. BDO is the bankruptcy trustee.
September 28, 2021
McEwan Enterprises Inc., a Toronto, Ontario-based premier hospitality company, obtained protection under the CCAA on September 28, listing over $10 million in liabilities. The company's business is comprised of six high-end restaurant locations (including Bymark, Fabbrica and ONE Restaurant), three gourmet grocery locations, a catering business and an events business, A key part of the company's restructuring plan and the CCAA proceedings is to effectuate a going concern transaction of the company's business, including the sale and transfer of substantially all of its assets and liabilities, to a new entity formed by the company's current shareholders, Fairfax Financial Holdings Limited and McEwan Holdco Inc. A&M was appointed monitor. Counsel is Goodmans for the company and Bennett Jones for the monitor.
September 27, 2021
Alcan Fluid Disposal Ltd., a Prince George, British Columbia-based oil and gas company which operated two wells for the purpose of wastewater disposal, filed an assignment in bankruptcy on September 27, listing over $2 million in debts, including approximately $130,000 for estimated reclamation costs. The company has not been an operating entity for approximately 10 years before the filing. MNP is the bankruptcy trustee.
September 21, 2021
Trinity Centres Cambridge, a single-purpose organization formed to acquire and manage real property located at 15 Wellington Street in Cambridge, Ontario, had a receiver appointed over its property on September 21, on application by Coldpoint Holdings Ltd., owed approximately $1.8 million. The company is jointly controlled by River City Christian Reformed Church, which is the primary tenant of the real property, and Trinity Centres Foundation. Deloitte was appointed receiver. Counsel is TGF for Coldpoint, Weintraub Erskine Huang for River City Christian Reformed Church, Aird & Berlis for Graham Singh and Trinity Centres Foundation, Teplitsky Colson for Peter Elgersma and Crawley McEwan Brush for the company.
September 17, 2021
Premium Liquid Labs Inc., a Burnaby, British Columbia-based manufacturer of electronic cigarette liquids under the Premium Labs was placed into bankruptcy on September 17, on application by EsmokerCanada Inc., owed approximately $2.6 million. BDO is the bankruptcy trustee. Harper Grey is counsel for the applicant.
September 16, 2021
10000050 Manitoba Ltd., the owner of a Bombardier Challenger 604 (the "Aircraft"), had a receiver appointed over the Aircraft on September 16 on application by PNC Equipment Finance, a Division of PNC Bank Canada Branch ("PNC"). To finance the acquisition of the Aircraft, the company borrowed US$3.36 million pursuant to an Aircraft Loan Agreement which was secured by the Aircraft. The company has been in continuous default under the Aircraft Loan Agreement since June 1, 2021, including because of the commencement of proposal proceedings by the company's sole shareholder, Sean McCoshen. As of July 9, the outstanding indebtedness under the Aircraft Loan Agreement was approximately US$3.05 million. Immediately following the granting of the Receivership Order, an Approval and Vesting Order was issued approving the sale of the Aircraft to Sunwest Aviation Ltd. Farber was appointed receiver. Counsel is Blakes for PNC and MLT Aikins for the receiver.