March 17, 2022
The Winning Combination Inc., a Winnipeg, Manitoba-based manufacturer of protein powders and sport supplement products, was placed in receivership on March 17, on application by HSBC Bank Canada, owed approximately CAD $10.3 million and USD $145.3 thousand as at February 22. In early 2022, the company advised the Bank that two entities were interested in providing equity or debt financing, but no transaction materialized. On or about February 9, the company requested that the Bank extend credit to the company over and above the approved credit limit in order for the company to meet its payroll obligations and make raw material purchases. On or about February 14, the company disclosed to the Bank that it had unpaid source deduction and GST obligations to CRA in the amounts of approximately $1.4 million and $400,000, respectively, notwithstanding that the company had been signing compliance certificates confirming all amounts owing to CRA were paid and up to date. On February 25, the Bank extended $144,297.60 for the company's payroll obligations and approximately $54,000.00 to be applied towards the company's source deduction and GST obligations to CRA, over and above the company's approved credit limit. Nevertheless, the company remained unable to pay its payroll and tax obligations, and the Bank was not prepared to provide further financial assistance over and above the current credit limits. EY was appointed receiver. Counsel is Fasken Martineau and MLT Aikins for HSBC Bank Canada, McCarthy Tetrault and Pitblado for the company and Thompson Dorfman Sweatman for the receiver.
By Dina Milivojevic