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.
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.
Waterway Houseboats, a Sicamous, British Columbia-based houseboat vacation business, was placed in receivership on June 11 on application by CIBC. A 2012 flood caused significant damage to the company's waterfront property and forced it to borrow heavily to repair its marina and upgrade its fleet. Two months after the flood, the company sued the province, the local district and neighbouring landowners. The case went to trial earlier this year and on April 16, the court issued its judgment. Although successful, the quantum of damages awarded was far less than what was needed and expected by the company. Alvarez & Marsal was appointed receiver. Counsel is Blakes for the applicant and Gowling WLG for the receiver.
Inara, an Edmonton, Alberta-based company which owns and operates a Quality Inn Hotel in Whitecourt, Alberta, was placed in receivership on May 3 on application by ATB Financial, owed approximately $1.1MM. The 81 room hotel was opened in 1956. In addition to the $1.1MM owed to ATB, Inara also owes the Town of Whitecourt approximately $452.6M in unpaid property taxes, penalties and interest. Hardy & Kelly was appointed receiver. Dentons is counsel for the applicant.
2504121 Ontario Inc., doing business as The Anne Boleyn, a British-style pub in Toronto, Ontario, filed for bankruptcy on April 18, listing $980.9M in liabilities. The pub had only been open since August 2017. BDO is the bankruptcy trustee.
Harry Chung Enterprises Inc., a Toronto, Ontario-based company that operated an Aroma Espresso Bar franchise from premises located at 1864 Queen Street East, Toronto, filed for bankruptcy on April 9. Spergel (GRIP) is the bankruptcy trustee.
RNG Restaurants, which operates a Boston Pizza from premises located at 16A Leslie Street, Toronto, Ontario, filed for bankruptcy on February 14, listing $1.9MM in liabilities, including $908.3M to RBC. msi Spergel is the bankruptcy trustee.
Pizza Salvatore, a Thetford Mines, Quebec-based pizza restaurant franchise with more than 12 restaurants in operation in Quebec, filed for bankruptcy on January 17, listing $761.0M in liabilities. Raymond Chabot is the bankruptcy trustee.
2104488 Ontario, which operates a Boston Pizza at 100-5170 Yonge Street, Toronto, filed for bankruptcy on January 14, listing $1.7MM liabilities, including $900.0M to BNS. msi Spergel (ICIN) is the bankruptcy trustee.