February 27, 2018
BionX Canada, an Aurora, Ontario-based company that designs, manufactures and sells electronic propulsion systems for bicycles, was placed in receivership on February 27 on application by Stronach Consulting, owed approximately $21.9MM. In February 2018, as the company's financial situation was deteriorating, General Motors - who was a primary customer - notified the company that it was considering commencing a claim for $5.3MM (USD) for alleged breaches of their purchase contract. In addition to these existing financial difficulties, the company failed to find a purchaser of its shares or assets. Stronach was subsequently unwilling to provide further funding to the business outside of a receivership proceeding to market. During the proceedings, it will provide funding of approximately $1.3MM to administer the receivership and execute the proposed sales process. Grant Thornton was appointed receiver. Counsel is Stikeman Elliott for the applicant, Cassels Brock for the company, Speigel Nichols Fox for GM and Brauti Thorning Zibarras for the receiver.