L'Univers du Modulaire Inc., a Sherbrooke, Quebec-based general contractor filed an NOI on July 12, listing approximately $6.7 million in liabilities, including $3.9 million to the Business Development Bank of Canada. Among other services, the company provides general contracting services in connection with the construction of modular houses and complexes. MNP is the proposal trustee.
Bel-Habitat Inc. and Bel-Habitat 2 Inc., Laval, Quebec-based construction companies, filed for bankruptcy on June 28, respectively listing $26.0 million and $14.7 million in liabilities. Bel-Habitat Inc. owes $1.5 million to the Bank of Canada and Bel-Habitat 2 Inc. owes $5 million to Gestion Yves Carbonneau et fils Inc. and $5 million to Stratégie S.I.M.A Inc. Raymond Chabot is the bankruptcy trustee.
0751380 B.C. Ltd. dba Sunshine Contracting, a Terrace, BC-based construction company, was placed in receivership on June 22 on application by TD, owed approximately $185 thousand. The company lists $168.1 thousand in assets. BDO was appointed receiver. Harper Grey is counsel to the applicant.
P7 Construction Ltd. ("P7 Construction") and 1619904 Alberta Ltd. ("161 Alberta") were placed in receivership on May 21 on application by BDC, owed approximately $7.0 million. In February 2015, BDC approved a loan to P7 Construction in connection with its development of a Holiday Inn Express & Suites in Bonnyville, Alberta. 161 Alberta, which operates the hotel, guaranteed payment of the loan. P7 Construction has been in default of the loan since March 24, 2020, and in November 2020, BDC and its counsel demanded payment. BDO was appointed receiver. McLennan Ross is counsel to the applicant.
Model Panel Manufacturing Ltd., an Edmonton, Alberta-based construction company, was adjudged bankrupt on May 7 on application by TNT MPM Holdings Inc. EY is the bankruptcy trustee. Miller Thomson is counsel to the applicant.
Drexler Construction Limited ("Drexler"), Folmur Construction (2004) Ltd. ("Folmur"), and Down Under Pipe and Cable Locating Ltd. ("Down Under"), three construction companies, filed NOIs on March 18. Drexler and Down Under, which operate from premises in Rockwood, Ontario, respectively list approximately $8.3 million and $2.1 million in liabilities. Folmur, which operates from leased premises in Guelph, Ontario, lists approximately $3.2 million in liabilities. The companies are all indebted to RBC, each as a borrower under a number of credit facilities and as a guarantor of the other two companies' obligations to RBC. The COVID-19 crisis has had a general adverse impact on the companies' costs and their ability to complete various municipal jobs. The companies also suffered two unusual and isolated financial setbacks in 2020, being (1) a loss on a job due to an estimator's error and (2) a CRA interest charge. Before filing the NOIs, the companies were in discussions with RBC about possible arrangements to forbear on the demands. However, the parties were unable to come to a mutually agreeable arrangement. During these proceedings, the companies will be receiving up to $1.5 million in DIP financing from Corwin Mortgage Capital Inc. Albert Gelman is the proposal trustee. Counsel is GSNH for the companies, Macdonald Sager Manis for the proposal trustee, and Aird & Berlis for RBC.
T-Rex Contracting Inc., a Leduc, Alberta-based construction company, along with various other related entities (collectively, the "T-Rex Entities"), were placed in receivership on February 4 on application by BMO, owed approximately $1.29 million. As a result of various events of default under the loan agreements entered into by the T-Rex Entities, BMO demanded repayment of its indebtedness. To date, the T-Rex Entities have refused or neglected to make any payments. Grant Thornton was appointed receiver. Counsel is Dentons for the applicant and Cassels for the receiver.
Metro Paving and Roadbuilding Ltd., a Calgary, Alberta-based supplier of construction services, along with various other related entities (collectively, the "Metro Entities"), were placed in receivership on January 20 on application by BMO, owed approximately $7.2 million. As a result of various events of default under the loan agreements entered into by the Metro Entities, BMO demanded repayment of their indebtedness. To date, the Metro Entities have refused or neglected to make any payments. BDO was appointed receiver. Counsel is Torys for the applicant and Field Law for the Metro Entities.
2423402 Ontario Inc., a special purpose entity that is wholly owned by Bondfield Construction Company Limited, was assigned into bankruptcy by its court-appointed receiver, Alvarez & Marsal, which was certified on December 3, 2020. The company was previously placed in receivership on December 6, 2018 on application by BMO, as administrative agent for a syndicate of lenders owed approximately $122.2MM. The company had no significant assets other than the contracts for the development, construction and completion of the Cambridge Memorial Hospital, a $187.0MM, fixed price project. The company did not perform the construction itself but rather contracted the work back to Bondfield. Counsel is McCarthy Tétrault for BMO, Blakes for the receiver, and Osler for Bondfield.
2423402 Ontario Inc., a special purpose entity that is wholly owned by Bondfield Construction ("Bondfield"), filed for bankruptcy on December 3, 2020, listing approximately $15.1 million in liabilities, including $13.3 million owing to the sole secured creditor, Zurich Insurance Company Ltd. ("Zurich"). The company had one asset, which was a receivable of $7.5 million under a court-approved settlement arising from its contracts for the development, construction, and completion of the Cambridge Memorial Hospital — a $187.0 million fixed price project. The debtor did not perform the construction itself, but rather contracted the work back to Bondfield. When Bondfield entered into prior CCAA proceedings, the debtor was first placed in receivership for the sole purpose of calling on the insurance company bonds in order to complete the project. Ira Smith Trustee & Receiver is the bankruptcy trustee. Counsel is BLG for Zurich and the estate solicitor is Aird & Berlis.