Redrock Camps Inc., a Calgary, Alberta-based company that provides temporary accommodation sites for companies in the energy, infrastructure, and firefighting sectors to house employees working in rural locations — along with its subsidiaries — obtained protection under the CCAA on May 13 on application by Invico Diversified Income LP ("IDILP") and Invico Trade Capital LP, owed approximately $18.9 million. The company, which lists over $26.7 million in total liabilities, is currently facing a liquidity shortfall and has defaulted on its obligations to the applicants, other creditors, and several of its suppliers. Most concerning, Skinner Bros Transport Ltd., the transportation company responsible for food delivery to the service camps, has threatened to cease transporting food to the camps until it receives payment. Without CCAA protection, a shutdown of operations is inevitable. IDILP will be providing up to $2.5 million in interim financing during these CCAA proceedings. BDO was appointed monitor. Counsel is Gowling WLG for the applicants, MLT Aikins for the monitor, and Osler for the companies.
Encore Vineyards Ltd., the last of a group of wineries built under the full stewardship of the late Harry McWatters, best known as the founder of Sumac Ridge Estate Winery and See Ya Later Ranch, and the founding chairman of VQA Canada, BC Hospitality Foundation, and BC Wine Institute, filed a proposal on May 7, listing approximately $18.0 million in liabilities, including $5.0 million owed to BMO. In July 2018, the company opened the TIME Winery & Kitchen in Penticton, British Columbia, with a 15,000 square foot facility offering a tasting bar, a lounge, and an outdoor patio for customers. In recent years, the company has not been profitable, with losses attributable to significant delays and cost overruns in the construction of its premises, large carrying costs on debt and higher than expected marketing costs, as well as factors outside of the company's control such as the Alberta wine boycott and forest fires impacting tourism. The company has completed a sales process and a transaction is contemplated in the proposal whereby a purchaser will pay $5.8 million for the assets of the company upon court approval of the proposal. BDO is the proposal trustee. Counsel is Fulton & Company for the company and Lawson Lundell for BMO.
Foodora Inc., the Canadian subsidiary of Delivery Hero SE and an online food-delivery service company that has operations in Ontario, Quebec, Alberta and British Columbia, filed an NOI on April 27, listing approximately $4.7 million in liabilities, with the vast majority of money owed to restaurants. The company, which intends to continue to operate until May 11, is working on a proposal to make to its employees and other creditors. Earlier this year, the Ontario Labour Relations Board ruled that Foodora couriers were dependent contractors and had the right to form a union. Grant Thornton is the proposal trustee. Blakes is general counsel for the company and Dentons is counsel for the company relating to employment matters.
Marché Restaurants, which owns a marketplace-style restaurant inside Brookfield Place and the Mövenpick Café in downtown Toronto, Ontario, filed an NOI on April 16, listing $1.1 million in liabilities, including $163.8 thousand to LCBO. The company is expected to close its Toronto restaurants at the end of May, and will be refocusing on its airport and hospitality business in Europe. BDO Canada is the proposal trustee. Baker McKenzie is counsel for the company.
BTB Property Holdings and certain other related companies that together own and operate a Ricky's Family Restaurant and Econo Lodge hotel in Brooks, Alberta, were placed in receivership on April 9 on application by Cecile Cuku, owed approximately $1.8 million. The Bowra Group was appointed receiver. Parlee McLaws is counsel to the applicant.
Clover Leaf Seafoods, a Markham, Ontario-based seafood supplier, obtained protection under the CCAA on November 22. The company is the Canadian affiliate of U.S.-based Bumble Bee, one of North America's best-known consumer shelf-stable seafood companies which commenced Chapter 11 proceedings on November 21. While Clover Leaf's business is cash flow positive and profitable, the balance sheet of the Bumble Bee Group as a whole has suffered under various financial pressures and litigation to which Bumble Bee U.S. is subject. In 2017, the company pleaded guilty to price fixing and was fined US $25.0 million. Civil litigation was also launched against the company by major grocery chains such as Walmart and Kroger. While under creditor protection, the group will launch a stalking horse sales process for the business. Alvarez & Marsal is the monitor. Canadian counsel is Bennett Jones for the company, Osler for the monitor, Blakes for the ABL Agent and ABL DIP Agent, Davies for the stalking horse purchaser, Goodmans for the Term Agent and DIP Term Agent and Torys for the company's private equity sponsor, Lion Capital.
Applefest Lodge, a retirement residence in Brighton, Ontario, was placed in receivership on October 4 on application by Pace Savings & Credit Union, owed approximately $6.4 million. Originally opened in 1984, the residence was expanded in 2010 by opening a new wing with an additional 31 suites, resulting in a total of 67 suites. The expansion, however, created financial difficulty for the company due to construction delays, expensive financing and low occupancy and Stephen Bardo, the residence's sole officer and director, turned to Bill Dillane, a personal friend and private investor for funds to cover the shortfall. In July 2019, Bardo passed away. He had no will, and there was no mechanism in the residence's articles of incorporation to replace him as officer or director. With no other signing officer for the company, Dillane continued to fund expenses personally and then reimburse himself using pre-signed cheques provided by Bardo prior to his death. While an essential arrangement, it is not sustainable, and Pace therefore sought the appointment of a receiver who could borrow money while managing and preparing the residence for a sale. Grant Thornton was appointed receiver. Counsel is Harrison Pensa for the applicant and Aird & Berlis for the receiver.
Swift Hotels Group, a company's whose primary asset is a Days Inn hotel in Swift Current, Saskatchewan, was placed in interim receivership on September 20 on application by Innovation Credit Union, owed approximately $10.4 million. Deloitte was appointed interim receiver. Counsel is Olive Waller Zinkhan & Waller for the applicant, MLT Aikins for the interim receiver and Burnet Duckworth & Palmer for the company.
Alaskan Water Seafood, a Brampton, Ontario-based seafood supplier was placed in receivership on June 24 on application by RBC, owed approximately $1.0MM. In March 2019, the accounts of the company were transferred to RBC's special loans group because its risk profile had deteriorated. RBC expressed concerns about, among other things, improprieties with respect to the completion of borrowing base certificates and late reporting. The company acknowledged its financial difficulties, which it attributed to rising competition, but its attempts to refinance its business and/or attract an equity partner have been unsuccessful and recent information provided to RBC has increased the bank's concerns about the deteriorating financial position of the company. Grant Thornton was appointed receiver. Counsel Minden Gross for the applicant and KMB Law for the company.
Octopus Holdings, a Calgary, Alberta-based company that owns 40 units of a partnership owning a hotel and resort on the Island of St. Lucia in the West Indies, was placed in receivership on June 13 on application by the partnership's general partner, East Winds Resorts Ltd. Various of the partners, including Octopus Holdings, have been in litigation since 2014 relating to the operation of the resort, which has a history of incurring operational losses. In November 2018, the general partner took an assignment of a loan to Octopus Holdings' from BNS which was in default. In May 2019, it demanded repayment of the $5.0MM owing. The amount has not been repaid, and the general partner is now seeking to acquire the units through a stalking horse sales process. Hardie & Kelly was appointed receiver. Counsel is DLA Piper for the company and Parlee for the receiver.