August 23, 2021
Nimbus Water Systems Inc., along with several related companies (collectively, the "Nimbus Group"), were placed in receivership on August 23 on application by National Bank (the "Bank"), owed approximately $11.7 million. The Nimbus Group is a Canadian privately owned and operated group of companies located in North York, Ontario, that provides sales, installation, and service of water treatment systems for residential, commercial, and industrial clients across Canada. By letters dated October 2020, November 2020, and April 2021, the Bank advised the Nimbus Group of their obligations after they defaulted on various obligations to the Bank. In April, the Nimbus Group entered into a forbearance agreement whereby the Bank agreed to forbear from enforcing its rights and remedies until June 30. Pursuant to the terms of the forbearance agreement, the parties consented to the appointment of BDO as the Bank's consultant to review the operations and financial position of the Nimbus Group. Currently, the forbearance agreement is at an end and the Bank has been continuing to support the Nimbus Group in the face of ongoing defaults. BDO was appointed receiver. Counsel is TGF for the Bank, Capo Sgro for the Nimbus Group and Chaitons for JLHD Investments Inc., a PPSA registrant.