Corsameccanica Inc., which operated a premium Italian motorcycle shop from premises located in Concord, Ontario, filed an assignment in bankruptcy on September 6. Corsameccanica was a dealer of Ducati and Piaggio (Aprilia/Moto Guzzi/Vespa) motorcycles and provided sales, service, and apparel. The company declared $476,655.85 in total liabilities at the time of its bankruptcy. Krieger & Company is the bankruptcy trustee. By Dina Milivojevic
2737524 Ontario Inc. o/a Estrada Automotive, a Markham, Ontario-based automotive modification workshop, filed an assignment in bankruptcy on June 27, listing approximately $320,000 in liabilities. The business volume was much lower than the anticipated level for the past several months and there were negligible clients during the extended period of COVID-19 restrictions. The company continued to incur fixed costs and, with no visibility towards the revival of business, the company filed an assignment in bankruptcy. Goldhar & Associates is the bankruptcy trustee By Dina Milivojevic
Terra Nova Mechanical Ltd., an Edmonton, Alberta-based automotive repair shop, was placed in receivership on May 19, on application by BMO, owed approximately $200,000. The company also owes approximately $1.2 million to the Business Development Bank of Canada. BDO was appointed receiver. Counsel is Dentons for BMO. By Dina Milivojevic
12413906 Canada Inc. o/a AJ Concept Auto Modifications, a Thornhill, Ontario based automotive parts and accessory modification workshop, filed an assignment in bankruptcy on April 27, listing approximately $340,000 in liabilities. The business volume during the COVID-19 pandemic was much lower than the anticipated level and there were negligible clients during the extended period of restrictions. The company continued to incur fixed costs and, with no visibility towards the revival of business, it filed an assignment in bankruptcy. Goldhar & Associates is the bankruptcy trustee. By Dina Milivojevic
Curbie Cars Inc. and 2311382 Alberta Ltd. each filed an assignment in bankruptcy on January 20, 2022, listing collective liabilities of $7.5 million, including $3.2 million to Prairies Economic Development Canada and $2.65 to SaskWorks Venture Fund Inc. The companies operated a start-up online car dealership. After not being able to obtain the required volume to become profitable, the companies decided to wind-up the operations. Grant Thornton is the bankruptcy trustee. Counsel is MLT Aikins for SaskWorks Venture Fund Inc. and Dentons for the bankruptcy trustee. By Dina Milivojevic
Akinvest — XPT Inc. ("Akinvest"), a Toronto, Ontario-based company, was placed in receivership and liquidation on November 24 on application by Dwight Grovum and Grovum Equities. Akinvest was formed in 2009 through the amalgamation of Akinvest and XPT Forwarding, two companies that operated in an international auto brokerage that facilitated online purchases, sales and deliveries of used and salvage vehicles from North American automobile auctions to dealers located outside of North America. The assets of Akinvest were sold shortly after the amalgamation and virtually no business activity was carried on thereafter. The company’s sole remaining asset was cash of approximately $9.9 million (USD). Akinvest’s shareholders (Andrei Kouznetsov 70% and Dwight Grovum 30%) agreed to wind up the company and distribute the cash to its shareholders on a pro-rata basis. Despite these intentions, it is alleged that Kouznetsov has refused over several years to distribute the assets, leading Grovum to seek the appointment of a receiver to effect the wind down. Zeifmans was appointed Receiver and Liquidator. Counsel is Fogler for Grovum and Bouchelev Law for Kouznetsov.
Hematite Group, a tier 1 supplier of automotive component parts with facilities in Brantford and Guelph, Ontario, obtained protection under the CCAA on September 18, listing approximately $59.3 million in liabilities, including $14.5 million to TD and $2.6 million to BDC. The COVID-19 pandemic and the resulting government-mandated shutdowns have had a significant adverse impact on the company's financial position. From March to May, the company's gross sales were approximately 70% below expectations and it experienced a significant and unexpected operating loss. During these CCAA proceedings, Woodbridge Foam Corporation ("Woodbridge") will be providing up to $6.0 million in interim financing. KPMG was appointed monitor. Counsel is McCarthy Tétrault for the Group, Gowling WLG for the monitor, Bennett Jones for Woodbridge, and Dentons for TD.
Kanwal Inc., a Magog, Quebec-based automotive sealing supplier with almost 30 years of experience, filed an NOI on July 30, listing approximately $19.2 million in liabilities, including $4.3 million to BMO and $9.1 million to First West Capital Loan. While the company has been negatively impacted by the COVID-19 pandemic, moving forward, it will be creating a more consolidated corporate structure and refinancing globally as part of its restructuring efforts. PwC is the proposal trustee. Sinclair Range is the Chief Restructuring Officer.
Nissan of Muskoka, a Bracebridge, Ontario-based car dealership, was placed in receivership on July 9 on application by Nissan Canada. Farber was appointed receiver. Counsel is McMillan for the applicant and Loopstra Nixon for the receiver.
AVG (OEAM), a Scarborough, Ontario-based automotive accessories operation, was placed into receivership on February 21 on application by RBC, owed approximately $9.8 million. The company, which was founded in 1985 as a distribution, engineering, and development partner for North American automotive OEMs, principally produced accessory parts for Nissan and Toyota. In August 2019, RBC and the company entered into a forbearance agreement after the company defaulted on its credit agreement with RBC. In September 2019, the company sought an extension of the forbearance period set out in the agreement after possible alternate financing fell through and the company could not meet the terms of the agreement. In order to consider the requested extension, RBC engaged BDO to prepare a report on the company's affairs. The BDO report disclosed that 85% of the company's listed accounts receivable were fabricated and certain accounts receivable were uncollectible. BDO was also appointed receiver. Counsel is Aird & Berlis for the applicant and Harrison Pensa for the receiver.