D Films Corporation, a Toronto, Ontario-based independent Canadian film distribution company, was placed in privately appointed receivership on August 9 by Bank Leumi USA, owed approximately $3 million. The company focused on the acquisition and distribution of long-term exclusive rights of both motion picture and television content and made strategic investments with major global film producers including NBCUniversal and Miramax Films. The company had been experiencing losses and cash flow problems for some time, and with no further funds available to be injected from any source, Bank Leumi USA lost confidence in management. Ira Smith Trustee & Receiver was appointed receiver. Counsel is Goodmans for the secured creditor.
MF Live Inc., a Saskatchewan-based company organizing the Roxodus Music Fest, filed for bankruptcy on July 12, listing $18.3MM in liabilities, including $11.2MM to Taurus Site Services and $5.0MM to Eventbrite. The company was organizing a four-day concert to be held from July 11 to 14 on a 420-acre space near Wasaga Beach, Ontario. Featured groups slated to perform at the event included Aerosmith, Kid Rock, Nickelback and Lynyrd Skynyrd, among others. Just days prior to the festival, however, the company announced that it was cancelling the event, citing tremendous rainy weather that impacted its ability to adequately prepare the venue for the event. It has also come to light that the company is under investigation from the local conservation authority for allegedly destroying protected forest and wetlands in preparation for the festival. Grant Thornton is the bankruptcy trustee. BT Legal is counsel for the company.
Bearspaw Country Club, the operator of a private golf and country club In Calgary, Alberta, was placed in receivership on May 16 on application by TD, owed approximately $10.4MM. The company had already ceased operations on May 1 and had let go of all employees except for five staff and one contractor who were kept on for the purpose of securing and preserving the golf course. PwC was appointed receiver. Counsel is McCarthy Tétrault for the applicant and Burnett Duckworth & Palmer for the company.
Toonbox Entertainment, a Toronto, Ontario-based animation studio, filed a proposal on April 29. Established in 2008, the company has produced award-winning movies and television shows such as The Nut Job and The Nut Job 2. The Nut Job 2, which was produced through a wholly-owned subsidiary of Toonbox, was eligible to claim certain provincial and federal refundable tax credits for the production of the film. These tax credits were used by the production company to secure funding from the Pacific Mercantile Bank, with Toonbox acting as a guarantor of the facility. When the production company failed to remit to Pacific Mercantile the approximately $7.5MM it received on account of the tax credits, the lender brought an application for the appointment of an interim receiver. BDO was appointed interim receiver on April 18. The company subsequently filed a proposal on April 29, with BDO acting as proposal trustee. Under the terms of the proposal, the assets of the company will vest in the trustee, who will conduct a sale process for the assets. Counsel is Bennett & Company for Toonbox, Cassels Brock for Pacific Mercantile and Zener & Waxman for the proposal trustee.
Sound City Music Entertainment (operating as RPM Distribution), Canada's leading independent vinyl distributor based in Concord, Ontario, filed for bankruptcy on January 25, listing $8.9MM in liabilities, including $5.4MM to Universal Music Canada and $2.0MM to Sony Music Canada. Farber is the bankruptcy trustee.
Outaouais Rock, the company that operated the annual Montebello Rockfest in Montebello, Quebec, filed an NOI on June 21. The music festival was founded in 2005 by a then 17-year-old local resident who grew tired of having to travel to bigger cities to attend concerts and events. The festival grew each year and in recent years has featured international acts such as Korn, Alexisonfire and Stone Temple Pilots, drawing over 200,000 people to the small village. The 2018 event just wrapped up on June 16, but the company does not have sufficient funds to fully repay workers, including artists and technicians. KPMG was appointed proposal trustee.