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.