RGN-National Business Centers and other debtors-in-possession (collectively, the "Chapter 11 Debtors") obtained protection under the CCAA on August 31. The Chapter 11 Debtors are subsidiaries of Regus Corporation, which together with its affiliates (collectively, "IWG"), offer a network of on-demand office and co-working spaces in over 1,000 locations in the US and Canada. The Chapter 11 Debtors currently owe approximately $433.0 million to Regus Corporation. IWG, which operates 137 centres in Canada, has been severely impacted by the COVID-19 pandemic. The principal purpose of the CCAA proceedings is to prevent certain Canadian leases from being terminated while the company and Chapter 11 Debtors develop a plan to restructure the global business of Regus Corporation and its affiliates. KSV was appointed monitor. Canadian counsel is Stikeman Elliott for the company and Bennett Jones for the monitor.
RGN-National Business Centers was declared a foreign representative of itself and six other debtors-in-possession (collectively, the "Chapter 11 Debtors") under the CCAA on August 24. The Chapter 11 Debtors are subsidiaries of Regus Corporation, which together with its affiliates (collectively, "IWG"), offer a network of on-demand office and co-working spaces in over 1,000 locations in the US and Canada. The Chapter 11 Debtors currently owe approximately $433.0 million to Regus Corporation. IWG, which operates 137 centres in Canada, has been severely impacted by the COVID-19 pandemic. The occupancy rates at its office spaces are significantly reduced and certain clients have had difficulty making payments under their occupancy agreements. To mitigate the effects of the pandemic, IWG has taken various cash flow and liquidity measures, including the deferral of rent payments and engagement with landlords to negotiate forbearances. If these Chapter 11 restructuring efforts prove unsuccessful, the company will have to wind down the operation of applicable centres. KSV was appointed information officer. Canadian counsel is Stikeman Elliott for the company and Bennett Jones for the information officer.
TA Hotel Management Limited Partnership, which owns Vancouver's Trump International Hotel, filed for bankruptcy on August 17, listing approximately $4.9 million in liabilities, including $3.2 million to Maxfine International Limited. Grant Thornton is the bankruptcy trustee.
Black Knight Inn, a Red Deer, Alberta-based hotel, lounge, and restaurant, was placed in receivership on August 7 on application by Servus Credit Union. MNP was appointed receiver. Miller Thomson is counsel to the applicant.
Ostrander Hotels, which operate as HomeStay Inn & Suites and HomeStay Inn Express in Medicine Hat, Alberta, were placed in receivership on July 22 on application by Innovation Credit Union, respectively owed approximately $7.1 million and $5.2 million. Deloitte was appointed receiver. Counsel is Dentons for the applicant and Duckworth & Palmer for the company.
Newgen Restaurant Services Inc. (formerly operating as Tucker’s Marketplace and Smith Bros. Steakhouse Tavern), a Toronto, Ontario-based business with a chain of three buffet restaurants, filed for bankruptcy on June 26. In its notice to customers, the company advised that there is not a profitable path forward with the business in light of the COVID-19 pandemic and uncertainty over reopening. RSM Canada is the bankruptcy trustee.
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.