May 8, 2019

Filing Type:

Trustee: Deloitte

Applicant: HSBC

Applicant Counsel: Fasken

Industry:

Province:

Mometal Structures, a Varennes, Quebec-based manufacturer and installer of non-conventional steel structures, was placed in receivership on May 8 on application by HSBC, owed approximately $7.8MM. In early April 2019, the company was placed in HSBC's loan management unit after a 13-week cash flow forecast indicated a $5.6MM deterioration in the company's margin position over a 10-week period. A revised forecast was provided by the company in April that showed no deterioration in the bank's position. This forecast, however, was predicated on the receipt of $11.0MM from EllisDon, the company's largest customer, as advances on future projects. By the end of April, these receipts did not materialize and the company did not have sufficient liquidity to continue operations. Deloitte was appointed receiver. Fasken is counsel for the applicant.