August 29, 2018
Oxford Advanced Imaging, a Toronto, Ontario-based company that provides medical diagnostic services, including MRI and CT testing, and which owns and operates two medical diagnostic imaging clinics, had its assets and business placed under an order for sale on August 29 on application by TD, owed approximately $10.9MM. The company, which was formed by a group of four radiologists, originally acquired the business from Life Labs. Shortly after the acquisition, the company began to suffer from severe and irreconcilable disagreements among shareholding groups and board members. In particular, there was a strong discord between the company's president, Dr. Jae Kim, and the other three radiologists. The company had made a number of cash advances to related entities that did not share the same ownership as the company but in which Dr. Kim held significant equity interests. Although Dr. Kim asserted that there were good business reasons for those advances, the other doctors did not accept his claim. By the summer of 2017, the company owed approximately $1.4MM to these related corporations, which subsequently affected the company's liquidity. With the cooperation of TD, the company attempted to commence an informal winding-up of its business operations by offering them up for sale. Although the lengthy sales process eventually resulted in an Agreement of Purchase of Sale dated April 2018, a specific condition was not met; as a result, the Agreement could not be completed and was terminated by the seller. The company's business is threatened unless it is able to promptly re-market its business and complete a sale. There is public interest in keeping the clinics open and operating during the sales process as they provide 40% or more of the Ontario public's access to MRI services outside of hospital operations. KPMG was appointed sales officer. Counsel is Aird & Berlis for TD, Wilson Vukelich for the company, Foglers for three radiologists (Dr. Gordon Cheung, Dr. Davinder Gill, Dr. Deep Chatha) and Dentons for KPMG.