August 16, 2019
R.D.E. Ventures, a Spruce Grove, Alberta-based equipment rental company, was placed in receivership on August 16 on application by National Bank, owed approximately $11.0 million. In March 2019, the then CFO of the company contacted National Bank requesting additional time to provide audited financial statements. By late April, the statements had not yet been provided, despite repeated assurances from the CFO that the statements were a day or two away from being delivered. In May, 2019, National Bank elevated the request for statements to the president of the company, who investigated and discovered that auditors had not even been hired. Concerned with this news, as well as the deteriorating financial position and defaults of the company, National Bank issued a demand for repayment on July 9, which triggered an NOI filing by the company. Further discoveries of funds being diverted to another financial institution, as well as a lack of a feasible restructuring proposal or plan, led National Bank to request that the proposal proceedings be terminated. FTI was appointed receiver. Counsel is McCarthy Tétrault for the applicant and Ogilvie for the company.