October 18, 2019
Aquila Fabrication and Equipment, a Red Deer, Alberta-based manufacturer of products for the upstream oil and gas industry, along with certain related companies, was placed in receivership on October 18 on application by Tom and Donna Trenerry. Significant and irreconcilable differences have arisen between the applicants, the 100% shareholders of Aquila, and Randal James Hofer, the applicants' son-in-law and an employee in the business responsible for its day-to-day operations. The applicants allege that Hofer is mismanaging the company, including issuing unjustified cheques to himself personally and arranging the company's affairs in a manner which precludes the applicants from having sufficient visibility into the activities and operations of the business. Hofer has allegedly refused to cooperate with the applicants' requests for information and documentation and, fearing that the company may not have sufficient liquidity to meet its obligations, the applicants sought the appointment of a receiver to protect the interests of the company and its creditors. KPMG was appointed receiver. Counsel is Cassels Brock for the applicants, MLT Aikins for the receiver and Warren Sinclair for Randal Hofer.