May 14, 2021

Filing Type:

Company Counsel: Navigator Law

Trustee: Farber

Applicant: Canadian Western Bank ("CWB")

Applicant Counsel: MLT Aikins



Forthryte Services Inc., a Fort McMurray, Alberta-based waste disposal and garbage removal company, was placed in receivership on May 14 on application by Canadian Western Bank ("CWB"), owed approximately $540 thousand. Pursuant to a loan agreement and various amendments to the agreement, CWB extended various loan segments to the company and Carmelo Daprocida, one of the company's directors. To secure their obligations to CWB, the company and Daprocida entered into separate general security agreements with CWB. CWB now alleges that the company and Daprocida are in default of the loan agreement for, among other reasons, failing to make required principal and interest payments. On May 5, CWB's legal counsel issued a demand letter to the company and Daprocida for payment of all amounts outstanding to CWB. The parties consented and waived the 10-day notice period under the BIA, thereby allowing CWB to immediately enforce its security. Farber was appointed receiver. Counsel is MLT Aikins for the receiver and Navigator Law for the company and Daprocida