Biomod Concepts, a Sainte-Julie, Quebec-based biotechnology company, filed a proposal on October 17. Founded in 2009, the company is involved in the research and development of an innovative delivery system of active ingredients for the beauty and health industries. Facing a liquidity crisis earlier in the year, the company temporarily ceased operations and filed an NOI on April 8. A sale process yielded no bids for the business or its assets, but the company's principal shareholder has structured a transaction that will see the company's core business and technology transferred to a new entity. The company's primary secured creditors, Investissement Québec (IQ) and Quantius Innovation Income Fund LP, together owed approximately $6.3 million, have consented to the transaction, and IQ will be a preferred shareholder of the company under the new structure. The purchaser has also advanced $300.0 thousand to fund a proposal, which translates to a distribution of 22 cents on the dollar for unsecured creditors. Richter is the proposal trustee. Counsel is Gowling WLG for the company and BLG for Quantius.
OpenHydro Technology Canada, a Dartmouth, Nova Scotia-based company and wholly-owned Canadian subsidiary of OpenHydro Group of Ireland, which is controlled by French-based Naval Energies, converted its BIA proposal proceedings to CCAA proceedings on November 7. The group of companies specializes in developing marine-based renewable energy solutions, including harnessing tidal energy to create electric power. OpenHydro was managing the Cape Sharp Tidal Venture (CSTV), a tidal energy project located off Nova Scotia in the Minas Basin, an inlet of the Bay of Fundy. The CSTV is a joint venture of which OpenHydro’s parent company is the majority shareholder. OpenHydro’s operating capital was cut off when its parent company, OpenHydro Group, filed for liquidation in Ireland. One of the company’s main assets is the Scotia Tide, a barge used in the installation, recovery and testing of CSTV’s tidal turbines. The barge, which was built in 2016 at an approximate cost of $30.0MM, is subject to numerous marine claims filed in the Federal Court. The company plans to initiate a sales process for the Scotia Tide barge as well as attempt to recover various financial assets in hopes of satisfying the claims of its creditors. OpenHydro owes approximately $6.0MM to a variety of Atlantic Canadian marine service contractors that helped in the installation of a turbine in July, but never received payment. The Supreme Court of Nova Scotia approved a $500.0M DIP facility and charging order; however, the CCAA Initial Order did not exempt the marine claims from being advanced in the Federal Court. OpenHydro is meeting with its counsel to prepare a motion to the Federal Court to have the CCAA stay of proceedings recognized by the Federal Court. Grant Thornton was appointed monitor. Cox & Palmer is counsel to the company.