Motovan, a Montreal, Quebec-based distributor of powersports parts and accessories, obtained protection under the CCAA on December 2. An industry leader for over 30 years, the company expanded outside of Canada in 2015 through the acquisition of US-based Motorcycle Tires & Accessories LLC (MTA). The acquisition has not been successful though. The US company has generated negative EBITDA since its purchase, and the shift in management's focus from the Canadian operations to the integration of MTA negatively impacted Canadian revenues as well. Despite attempts to cut costs and enhance various aspects of its operations, the company remains in breach of its fixed charge coverage ratio with its operating lender, BMO, and it does not have the liquidity to purchase the levels of inventory necessary to support its operations. The company intends to run a sales and investment solicitation process in consultation with its stakeholders while under creditor protection. KPMG is the monitor. Counsel is BCF for the company and Norton Rose Fulbright for the monitor.
Cartise, a Montreal, Quebec-based distributor of women's fashion and apparel, was placed in receivership on October 24 on application by HSBC, owed approximately $1.3 million. Operating for over 40 years, the company sold to various boutiques and other retailers across Canada and the United States. EY was appointed receiver. Davies is counsel for the applicant.
B&W Heat Treating Canada, a Kitchener, Ontario-based supplier of heat-treating services for customers with aluminum, steel, alloy or metal parts that require heat treatment, was placed in receivership on September 27 on application by Cerberus Business Financial, owed together with certain other lenders approximately US $3.0 million. Until several years ago, the largest and most profitable part of the company's business was processing engine blocks for its main customer, which represented approximately 37% of the company's revenue. In 2015/2016, the customer transferred its business to Mexico, away from the company. As a result of the loss of business, the company has suffered operating losses for several years. Despite attempts to scale back costs, the company was unable to return to profitability and made the decision to sell the business and its assets. A sale process has led to a proposed transaction with Hilco, which will be completed through the receivership. Farber was appointed receiver. Counsel is McMillan for the applicant and Chaitons for the company.
Ican Tile Distributors and Ican Contracting, two related Burnaby, British Columbia-based companies that operated as a wholesale tile distributor and contractor specializing in tile, granite and marble installation for multi-residential and commercial projects, were adjudged bankrupt on application by RBC on July 9. The bankruptcy orders were stayed and did not become effective until September 9, 2019, when the stay of proceedings was lifted and KPMG was appointed trustee. Poulsen & Company is counsel for the applicant.
Flexcavators Canada, a Calgary, Alberta-based distributor of innovative excavation equipment and accessories, filed for bankruptcy on June 17, listing $487.0M in liabilities, including $115.6M to BDC. Grant Thornton is the bankruptcy trustee.
Amax Health, a St-Catherines, Ontario-based distributor of medical and dental supplies, was placed in receivership on June 4 on application by CIBC. RSM was appointed receiver. Scarfone Hawkins is counsel for the applicant.
Scholary Book Services, a Toronto, Ontario-based book distributor, filed for bankruptcy on April 18, listing $241.3M in liabilities. Founded in 1980, the company was the exclusive Canadian distributor for over 40 US and UK university presses, providing full-service sales, marketing and order fulfillment in Canada for its publishers. SLF is the bankruptcy trustee.
B.W. Rig Supply, a Nisku, Alberta-based provider of oilfield, industrial, construction and tank supplies, filed an NOI on February 8, owing $58.5M to Canadian Pump & Packaging. Deloitte is the proposal trustee.
Eztia Furnishings, an Edmonton, Alberta-based importer and distributor of household furnishings, was placed in receivership on December 12 on application by HSBC. Bowra Group was appointed receiver. Dentons is counsel to the applicant.
Royal Canadian Bedrock, a Toronto, Ontario-based supplier of stone products for custom homes, high rise condominiums, hotels and commercial buildings, was placed in receivership on December 6 on application by HSBC, owed approximately $2.0MM. Counsel is TGF for the applicant, Cassels Brock for the debtor and GSNH for the receiver.