Dundas Retirement Place Inc., Maple Retirement Homes Inc., and 1059244 Ontario Inc., which each own and operate a retirement residence in Hamilton, Ontario, were placed in receivership on December 23 on application by Buduchnist Credit Union Limited ("BCU"), owed approximately $10.1 million in total. Each of the companies defaulted on its obligations to BCU and the defaults continue. Although the companies appear to have sufficient funds to make payments to BCU, payments are not being made and BCU has no visibility into what the funds are being used for. MNP was appointed receiver. Counsel is Keyser Mason Ball for the applicant and Brown Law for the companies.
Metropolitan Ice Cream Inc., a North York, Ontario-based family-owned company that made ice cream and ices, was placed in receivership on November 17. The Company’s products were available at various local grocery stores including Metro, Loblaws, Pusateri's, Highland Farms, Whole Foods, and Kitchen Table. Dodick Landau was appointed receiver.
Dine Under the Stars, a North Vancouver, British Columbia-based event management company that organized unique pop-up dinner events hosted at outdoor venues, filed for bankruptcy on November 10, listing approximately $ 1.7 million in liabilities. The company was preparing for its spring event season in mid-March 2020 when the COVID-19 pandemic caused all but essential services to shut down across North America. Almost immediately after shutdown measures were announced in March, customers began demanding refunds. Although the company has approximately $325.0 thousand in cash, it does not have sufficient cash to refund all of its customers the entire amount of their tickets, given that a significant portion of the revenues had already been invested in venue deposits, catering deposits, and advertising which likely cannot be recouped. MNP is the bankruptcy trustee.
King Street Restaurant Group, a Toronto, Ontario-based hospitality group, obtained protection under the CCAA on November 6. Prior to the onset of the COVID-19 pandemic, the Group operated eight restaurants under the following brands: Jacobs & Co, Buca, Bar Buca, La Banane, CXBO and Jamie’s Italian. Management has advised that the Companies’ financial difficulties and insolvency are attributable to two factors: (1) the significant impact of the COVID-19 pandemic and government restrictions on the Group’s business, contributing to a 98% decrease in year over year sales for the period from April to September 2020; and (2) the Jamie’s Italian locations at Yorkdale Mall and Square One Shopping Centre had insufficient revenues to make the restaurants profitable given their high fixed operating and start-up costs. The primary purpose of the CCAA proceedings is threefold: (1) to allow the Companies to operate their takeout and delivery business in order to maintain the value of their brands and preserve their various liquor licenses; (2) to stabilize the business operations to enable the Group to develop a strategy for the reopening of locations when possible; and (3) to develop and oversee an orderly restructuring of the business, including through the development and implementation of a SISP. MNP was appointed monitor. Counsel is Miller Thomson for the monitor, Gowling WLG (Canada) for the companies and Bennett Jones for secured lender and DIP lender Third Eye Capital.
Hacienda Sarria, a Kitchener, Ontario-based wedding venue, made an assignment in bankruptcy on October 21, listing approximately $1.2 million in liabilities. The company cited the ongoing COVID-19 situation and continuously changing government restrictions as the reasons for the bankruptcy. There are 155 unsecured creditors listed on the notice of bankruptcy. They include businesses and schools that paid deposits for proms, but the vast majority of the company's creditors are couples who paid deposits for their weddings. BDO is the bankruptcy trustee.
Dubh Linn Gate Partners (Vancouver) Company, a Vancouver, British Columbia-based company that owns a popular pub, filed for bankruptcy on October 20, listing approximately $1.7 million in assets and $2.6 million in liabilities. EY is the bankruptcy trustee
Butternut Manor Uxbridge Inc., the owner of Butternut Manor, an Uxbridge, Ontario-based retirement home, had a sales officer appointed over its assets and business on October 20 on application by Parmantid Inc., Smiling Pond Inc. and Carol Coleman-Trotter. The company is owned by The Butternut Partnership, which is in turn owned by Parmantid Inc. (51%) and 2180366 Ontario Limited (49%). The application involves a partnership dispute in which 2180366 Ontario Limited is alleged to have, among other things, caused the company to default on its first mortgage and arranged a second mortgage with an alleged fraudster. Deloitte, the sales officer, is authorized to distribute the proceeds of any sale of the retirement home to First National Financial GP Corporation, which is the first ranking secured creditor, owed $6.8 million on the first mortgage. Counsel is Paris & Company for the applicants, Blaney McMurtry for First National, Levy Zavet for 2180366 Ontario Limited and Gowling WLG for the sales officer.
Coulee Craft Brewing Corp., a Lethbridge, Alberta-based craft brewery company with a 16,000 sq. ft. brewing facility including a full-sized brewpub, was placed in receivership on October 13 on application by BMO, owed approximately $887.9 thousand. In a decision made by former management in December 2019, the company's brewing production ceased and all of its employees were terminated. Subsequently, the brewery business, including inventory and the company's goodwill, was listed for sale and the new management pursued leads on potential purchasers or investors. However, due to the COVID-19 pandemic, the company was unable to secure a firm offer before BMO's receivership application was scheduled. Grant Thornton was appointed receiver. Counsel is Cassels for the applicant and Miles Davison for the company.
1140402 Ontario Inc., operating as Emerald Lodge, was placed in receivership on September 25 on application by Alterna Savings and Credit Union Limited ("Alterna"). Emerald Lodge owns and operates a residential home/facility in Hamilton, Ontario that offers personal care and assisted living for adults, people with disabilities, and those with limited incomes. Grant Thornton was appointed receiver. Counsel is BLG for Alterna and Bennett Jones for the receiver.
2505243 Ontario Limited, a Vaughan, Ontario-based company that is part of a broader group of companies which operates in the hospitality business (the "Group"), filed an NOI on September 24 in response to the filing of an application for a bankruptcy order by Princes Gates GP Inc. and Princes Gates Hotel Limited Partnership (collectively, "PGH"). The company, listing approximately $8.2 million in liabilities, previously provided food, beverage, and catering services at the Hotel X Toronto, which is operated by PGH. Since the deadline for the company to file a proposal expires on October 24, the company requested a deadline extension to allow it to pursue its litigation claim against PGH and seek to realize upon any other assets. Peter and Paul's Gifts Limited, a related party and member of the Group, has agreed to provide funding to the company for its proposed extension period. KSV Advisory is the proposal trustee. Norton Rose Fulbright is counsel to the company.