Bolt Offsite, a Calgary, Albert-based designer and developer of modular building construction projects, was placed in receivership on March 12 on application by RBC, owed approximately $1.8 million. Since October 2019, RBC has continued to informally forbear from taking any enforcement steps while the company searched for replacement financing, but these efforts have been unsuccessful. KPMG was appointed receiver. Counsel is Osler for the receiver and Torys for RBC.
9227-1584 Quebec Inc., and 9336-9262 Quebec Inc., two related companies that are developing Square Candiac, a complex and multifaceted mixed-used construction and development project on approximately 45 acres of land on the south shore of Montreal, Quebec, obtained protection under the CCAA on November 22. While some aspects of the project have been completed, the companies have no immediate liquidity and progress on the project has stalled. A shareholder dispute led to the appointment of KPMG as administrative agent and manager of the companies. Upon its appointment, KPMG determined that the companies were insolvent and required interim financing and a stay of proceedings to effect a restructuring or a continuation of the company's operations and made an application for creditor protection on the companies' behalf. KPMG is monitor and has been granted additional powers to manage the project. Counsel is Blakes for the monitor, Dentons for one of the project's co-owners, Langlois for the other co-owner, Jolicoeur Lacasse for BDC and BLG for Gerpro Construction.
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.