Energold Drilling, a Vancouver, British Columbia-based drilling contractor, obtained protection under the CCAA on September 13. Operating in 25 countries, the company's revenues have been adversely impacted by the deterioration of the markets it serves - in particular, the general downturn in mining that commenced in or around 2012 and the subsequent general downturn in oil and gas that commenced in or around 2014. While conditions in the mining sector have shown some signs of improving in recent years, neither the mining or energy sectors have recovered to their previously robust levels of activity. The company's restructuring plan includes reducing its debt load, cutting costs in its corporate office, selling non-core assets and refocusing attention to its remaining operating units. FTI was appointed monitor. EY was appointed financial advisor to the company. Portage Point Partners was appointed CRO. Counsel is BLG for the company, Cassels Brock for the monitor, Gowling WLG for EDC, Clark Wilson for Extract Advisors LLC as administrative agent to the secured noteholders, McCarthy Tétrault for RBC and Stikeman Elliott for the DIP lender.
Skywell Homes, an Ottawa, Ontario-based home builder, was placed in receivership on August 8, on application by Cardar Investments, owed approximately $2.7 million. The company had already filed for bankruptcy on October 9, 2018. Prior to bankruptcy, the company was in the process of applying for a land severance application in respect of two single dwelling homes. The severance application was needed in order for the properties to be sold separately. In order to ensure the application was not impacted and in order to maximize value for a potential disposition of the two properties separately, Cardar waited until the severance application was granted in July before proceeding with the receivership application. PwC was appointed receiver. Counsel is Brauti Thorning for the applicant and Blakes for the receiver.
Voice Construction, an Edmonton, Alberta-based civil construction company, was placed in receivership on June 25 on application by Maynbridge Capital, owed approximately $35.9MM. Maynbridge, which took an assignment of the company's loan from a syndicate of lenders in January 2019, has been working with the company on the terms of a transaction that would address the company's immediate liquidity needs and improve its capital structure. Although negotiations continued to progress, by mid-June 2019 the company's liquidity position deteriorated to the point that an injection of capital was required in the immediate term. The company instead took steps to wind down its business operations, terminating staff and advising customers of the wind-down of its business. Fearing that the company's equipment would be exposed to potential possessory liens of trade contractors, Maynbridge sought the appointment of a receiver to preserve and realize on the assets in an orderly manner. Alvarez & Marsal was appointed receiver. Counsel is BLG for the applicant, Osler for the company and Miller Thomson for the receiver.
United Construction Company, an Acheson, Alberta-based general contractor, was placed in receivership on June 21 on application by Trisura Guarantee Insurance Company, owed approximately $2.7MM. Trisura, the company's surety on projects throughout Alberta, has been called upon to make payments to subcontractors, suppliers and labourers on various bonded projects. The company filed an NOI on June 6, with EY acting as proposal trustee, in response to Trisura's formal demand for repayment on May 29, but the stay has been lifted and a receivership order granted in favour of Trisura. Grant Thornton was appointed receiver. Counsel is Field Law for the applicant, McMillan for the receiver, Sharek & Co for the company and Dentons for TD.
Homes By Design, a company developing and constructing a 3 storey, 26 unit residential condominium complex with underground parking in Perth, Ontario, was placed in receivership on June 20, on application by HarbourEdge Mortgage Investment Corporation, owed approximately $28.8MM. The company was unable to repay its loans to HarbourEdge and the Court appointed Fuller Landau as receiver for the purpose of developing and carrying out a marketing and sales process for the property. Counsel is Victor Vandergust Professional Corporation for the applicant and Minden Gross for the receiver.
Station Point Developments, a company developing and constructing a 112 unit rental residential apartment in Edmonton, Alberta, was placed in receivership on June 17 on application by Kingsett, owed approximately $11.9MM. Construction of the project commenced in 2016 but has been plagued by a host of problems including being behind schedule, cost overruns, builders' liens being registered against the property and a litigious dispute between the developer and its general contractor, Fortis LGS Structures. The company was unable to repay its loan to KingSett when it matured in February 2019 and KingSett is unwilling to fund the estimated $6.9MM that is required to complete the project without the appointment of a trustee who has the ability to obtain construction advances from KingSett on a secured and first priority basis. KSV was appointed receiver. Counsel is McCarthy Tétrault for the applicant and Bennett Jones for the receiver.
Terra Nova Construction, a Calgary, Alberta-based construction company, was placed in receivership on May 17 on application by RBC, owed approximately $5.5MM. In addition to its failure to comply with its financial reporting requirements and its failure to advise the bank of any unfavourable change in its financial position, RBC suspected that the company had opened up another bank account for its day-to-day banking with a different financial institution, in breach of its loan agreement. Grant Thornton was appointed receiver. Counsel is McMillan for the applicant and Parlee McLaws for the company.
Heavy North Construction, an Edmonton, Alberta-based civil construction company, was placed in receivership on April 16 on application by 1056420 Alberta Ltd., owed approximately $2.4MM. KPMG was appointed receiver. Counsel is Bennett Jones for the applicant, Blakes for ATB and Osler for the receiver.
Devlin Construction, an Alberta, Edmonton-based construction company, was placed in receivership on April 9 on application by ATB, owed approximately $5.6MM. The company ran into financial difficulties with the downturn of the oil and gas industry as the number of jobs and margins on those jobs decreased. In February, the company filed an NOI in an attempt to restructure its affairs, seeking primarily to sell redundant assets and obtain interim financing. The company's request for a second extension of time to file a proposal was not supported by ATB or the Bowra Group, its proposal trustee, who reported that efforts to formulate a proposal were not progressing in an efficient and timely manner primarily because of the company's directors lack of cooperation and inability to work together. The court did not grant the extension and subsequently appointed PwC as receiver of the company. Counsel is Blakes for ATB and Emery Jamieson for the company.
Unison Construction Management, a Vancouver, British Columbia-based construction company, filed for bankruptcy on April 5. listing $9.2MM in liabilities, including $739.1M to BMO. The company's portfolio of commercial design-build projects include MNP's Vancouver offices at 1021 West Hastings Street. Grant Thornton is the bankruptcy trustee.