November 12, 2019
The Installation Group, a Sudbury, Ontario-based installer of telecommunications systems with an exclusive contract with Bell Canada for installation services across Northern Ontario, Northern Quebec, Manitoba and Saskatchewan, was placed in receivership on November 12 on application by BNS, owed approximately $599.0 thousand. Seeking growth, the company expanded its operations in or around 2016 to include the installation of satellite/internet services with new partners in rural areas. The expansion proved unsuccessful and by early 2018 the company had exhausted all of its financial resources. Shortly thereafter, management discovered that proper financial records were not being maintained by the company's internal accountant and payroll source deductions and sales tax had not been remitted since March 2017, resulting in an amount owing to CRA of approximately $1.7 million. A BIA proposal was filed by the company in December 2018 which necessitated the company obtaining a capital injection to, among other things, pay out BNS and pay off CRA's deemed trust claim within 6 months. None of the lenders approached were willing to finance the company, but one offered to purchase the company's assets as a going concern. The sale will be completed through a receivership. BDO is the proposal trustee and receiver. Counsel is Lipman, Zener & Waxman for the applicant, Chaitons for the BDO, Minden Gross for Firepower Capital and BLG for Bell Canada.