February 28, 2020
Kew Media Group (TSX:KEW), a Toronto, Ontario-based group that develops, produces, and distributes multi-genre audiovisual content worldwide, was placed in receivership, along with two of its subsidiaries, on February 28 on application by Truist Bank in its capacity as the agent for a syndicate of lenders comprising Truist, BMO, and TD (collectively, the "Lenders"). The production company, which was behind shows such as Dance Moms and The Inventor, owes the Lenders approximately $113.8 million. In November 2019, the company announced that its CFO, Geoff Webb, had supplied the Lenders with reports containing inaccurate information regarding working capital. As a result, the company defaulted on its $110.0 million credit facility. In January, the company further announced that its auditor, Grant Thornton, had withdrawn various audit reports as it could not rely on representations made by Mr. Webb. Shortly after, the Ontario Securities Commission issued a temporary cease order of the company's shares. Although TD Securities has been running a sales process for the company, it is apparent from the offers received that the Lenders will still suffer a significant shortfall on the company's debt. FTI was appointed receiver. Counsel is Dentons for the applicant, Goodmans for the group, Torys for the receiver, and Miller Thomson for BMO.