May 1, 2018
Innovative Steam Technologies, a Cambridge, Ontario-based supplier of heat recovery steam generators that capture and use steam for electricity production and enhanced oil recovery, was placed in receivership on May 1 on application by HSBC, owed approximately $13.1MM (CAD) and $3.0MM (USD). Back in 2015, Aecon Group (TSX:ARE) sold the company, which was a wholly-owned subsidiary, to Fulcrum Capital Partners for approximately $35.0MM. Based on current financial information provided to HSBC, the prospect of the company achieving positive cash flow is bleak: for three months, the company suffered a loss of around $1.7MM, and it reported a deficit of assets to liabilities of $11.2MM. Furthermore, its inability to contract new long-term projects from major customers and obtain further financial support from its shareholders has been commercially catastrophic for the company. Deloitte was appointed receiver. Counsel is Dentons for the applicant and Aird & Berlis for the company and Fulcrum.