DEL Equipment, a Newmarket, Ontario-based truck body builder and truck equipment upfitter, filed for protection under the CCAA on October 22. Operating nation-wide from six manufacturing and distribution locations, the company is currently facing a liquidity crisis and is in significant arrears to many of its suppliers. In June 2017, Gin-Cor Industries, a company that operates in the same field, acquired a 40% equity stake in DEL and assumed management control of the company. The majority of the anticipated business synergies failed to materialize, however, and in July 2018 the transaction was terminated and control of the business reverted back to DEL's previous sole shareholder. Despite this, the company's operational challenges have continued, and DEL is now more than $8.0 million in arrears to its supplier base, many of whom have begun to compress payment terms. Adding to this, the company has become embroiled in a payment dispute; a customer inadvertently remitted approximately $874.1 thousand to Gin-Cor instead of DEL and Gin-Cor is now refusing to return the funds. While under creditor protection, the company will seek to resolve the payment dispute. It also will attempt to complete a going-concern sale of the business or a restructuring transaction. MNP was appointed monitor. Counsel is Goodmans for the company and GSNH for the monitor.
Jack Cooper Ventures, a Kennesaw, Georgia-based auto hauler that recently filed for Chapter 11 bankruptcy protection, obtained an initial recognition order in Canada on August 9. Founded in 1928, the company has grown to be the largest provider of finished vehicle logistics in North America, but in recent years it has experienced significant declines in revenue as a result of overall declines in the automotive industry, as well as a loss of market share to lower cost, non-unionized competitors. In Canada, the company has approximately 181 employees. The company is putting forward a restructuring plan that will see its lenders cancel more than $300 million of debt as part of a transaction to purchase all or substantially all of the company's assets. Alvarez & Marsal was appointed information officer. Canadian counsel is Osler for the company, Stikeman Elliott for the information officer, Goodmans for the DIP ABL lender, Bennett Jones for the DIP Term Loan Agent and Cassels Brock for Cerberus.
Northview Collision, a Sutton West, Ontario-based auto repair shop, was placed in receivership on February 21 on application by RBC. msi Spergel was appointed receiver. Lerners is counsel to the applicant.
Campagna, a Boucherville, Quebec-based automotive company renowned for its revolutionary three-wheel side by side vehicles, filed an NOI on August 3, listing $7.6MM in liabilities, including $2.2MM to National Bank. Campagna's founder is former Formula 1 racer, Daniel Campagna, who devoted more than eight years to create the company's first vehicle, the T-Rex, which was introduced at the 1994 edition of the Montreal Auto Show. PwC was appointed proposal trustee.
Luxury and Sports Cars, a Woodbridge, Ontario-based used luxury car dealer, was placed in interim receivership on July 4 on application by RBC, owed approximately $450.3M. On June 4, RBC engaged msi Spergel (ICIN) as a consultant to review the company's financial and operational performance, and to evaluate RBC's security position. When msi Spergel (ICIN) attended at the company's premises to carry out its mandate, it discovered that substantially all of the used cars that form the company's inventory had been removed from the premises, effectively defeating the enforcement of RBC's rights under its security. msi Spergel (ICIN) was appointed interim receiver. Counsel is Aird & Berlis for RBC, Harrison Pensa for the interim receiver and Soble, Rickards & Associates for the company.
Crossline Auto Group, an Edmonton, Alberta-based used car dealer, was placed in receivership on May 18 on application by ATB Financial. PwC was appointed receiver. Dentons is counsel to the applicant.