March 18, 2021
Drexler Construction Limited ("Drexler"), Folmur Construction (2004) Ltd. ("Folmur"), and Down Under Pipe and Cable Locating Ltd. ("Down Under"), three construction companies, filed NOIs on March 18. Drexler and Down Under, which operate from premises in Rockwood, Ontario, respectively list approximately $8.3 million and $2.1 million in liabilities. Folmur, which operates from leased premises in Guelph, Ontario, lists approximately $3.2 million in liabilities. The companies are all indebted to RBC, each as a borrower under a number of credit facilities and as a guarantor of the other two companies' obligations to RBC. The COVID-19 crisis has had a general adverse impact on the companies' costs and their ability to complete various municipal jobs. The companies also suffered two unusual and isolated financial setbacks in 2020, being (1) a loss on a job due to an estimator's error and (2) a CRA interest charge. Before filing the NOIs, the companies were in discussions with RBC about possible arrangements to forbear on the demands. However, the parties were unable to come to a mutually agreeable arrangement. During these proceedings, the companies will be receiving up to $1.5 million in DIP financing from Corwin Mortgage Capital Inc. Albert Gelman is the proposal trustee. Counsel is GSNH for the companies, Macdonald Sager Manis for the proposal trustee, and Aird & Berlis for RBC.