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.
Dean Myers Chevrolet, a North York, Ontario-based car dealer, was placed in receivership on February 12 on application by RBC, owed approximately $9.2 million. An audit conducted by RBC in January 2020 revealed that the company had been selling vehicles without remitting the required repayments to RBC from the sale proceeds as required under its floor plan financing agreement. As of February, the amount of funds improperly withheld from RBC is estimated to be $2.7 million. Deloitte was appointed receiver. Counsel is Aird & Berlis for the applicant and Loopstra Nixon for the company.
Sle-Co Plastics, a St. Thomas, Ontario-based Tier 2 automotive parts supplier operating from real property in St. Thomas, was placed in receivership on January 9 on the motion of RBC, owed CAD $5.6 million and USD $2.3 million. Sle-Co Properties, which owns the St. Thomas property, owes RBC $3.5 million. During 2018, the company consolidated three production locations in London, Ontario into the one St. Thomas property. Cost overruns in preparing this new facility, re-location costs, operational issues on start-up, and the conclusion of a major contract all negatively impacted the company's financial position. In September 2019, Sle-Co Properties entered into an agreement of purchase and sale for the sale of the St. Thomas property to a third party, to be leased back to the company on certain conditions. The agreement eventually lapsed and the two companies were unable to obtain re-financing. On November 5, the company filed an NOI and BDO was appointed proposal trustee. The companies attempted to restructure their affairs through the sale of all or a portion of their assets, including the St. Thomas property. Based on the outcome of this sales process, the company determined it would not be able to file a viable proposal. Accordingly, the company will be deemed bankrupt after January 18, and a receiver will be required to complete the sales process initiated by the company. BDO was appointed receiver. Counsel is Harrison Pensa for RBC, Advocates for the companies, and Aird & Berlis for the receiver.
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.