PrimeCARE Health Clinics, Alberta-based healthcare providers with medical clinics in Calgary, Grand Prairie, and Carstairs, were placed in receivership on January 14 on application by ATB Financial, owed approximately $7.4 million. ATB had advanced funds to the companies pursuant to various commitment letters. The companies committed several defaults under these letters, and since May 2019, ATB has been negotiating with them to enter a forbearance agreement. However, the parties were unable to agree to the agreement prior to the clinics ceasing operations, and subsequent events led ATB to conclude that it was not prepared to provide further funding to the companies to continue the operation of their clinics. ATB was advised by the companies that they had removed $2.0 million from the business to be invested in real estate ventures, including a quadplex in Calgary and a failed development in Nigeria. When ATB asked for the details of these transactions to be provided as part of the proposed forbearance agreement, the companies failed to do so. These transactions caused ATB serious concern and were one of the primary causes of the companies' liquidity issues. EY was appointed receiver. MLT Aikins is counsel to the applicant.
Sudbury Regional Hearing Services, a privately-owned corporation that owns and operates hearing clinics in northern Ontario, and which was amalgamated with Bruserfactory (collectively, the "Debtor"), was placed in receivership on January 7 on application by Sivantos, a supplier and lender owed approximately $3.0 million. The Debtor, which did not provide Sivantos with advanced notice of its amalgamation, is in default of its obligations to Sivantos under their loan agreement. BDO was appointed receiver. Weaver, Simmons is counsel to the applicant.
Rando Drugs, owner of four pharmacies in Southwestern Ontario, was placed in receivership on December 4 on application by ECN Financial, owed approximately $4.1 million. Operating under a forbearance agreement since July 2019, the company had until the end of the year to refinance its debts or sell the pharmacies and pay out ECN. but it has not been able to do either. In late November, ECN learned that the landlord had purported to terminate the lease for one of the company's Windsor locations, effective December 31, 2019. The company did not disclose this to ECN for over two months. Having lost faith in the company, which had breached several covenants of the forbearance agreement, ECN moved for a receiver to be appointed to run an open and transparent sales process for the pharmacies. KSV was appointed receiver. Counsel is Miller Thomson for the applicant, Jerome Stanleigh for the company and GSNH for the receiver.
Purdue Pharma LP, a Stamford, Connecticut-based pharmaceutical company, obtained a Canadian recognition order of its US Chapter 11 proceedings on September 19. The company's most prominent product is its opioid pain medication, OxyContin. The company has been named in more than 2,600 lawsuits filed throughout the US state and federal court systems. The lawsuits allege that the company acted improperly in the marketing and sale of OxyContin and is responsible for fueling an opioid addiction crisis in the United States. In Canada, Purdue is also subject to over 10 class-action lawsuits. The company has sought bankruptcy protection in an attempt to find a global resolution of the existing claims against it. The company is proposing a settlement that involves, among other things, a $3.0 billion contribution from the company's shareholders and the transfer of the company's business and assets into a trust for the benefit of claimants and the US public. EY was appointed information officer. Canadian counsel is Stikeman Elliott for Purdue, Torys for the information officer, BLG for certain affiliated Purdue Canadian entities and Paliare Roland for the Sackler families.
Crystal Clear Vision, a Toronto, Ontario-based laser eye surgery clinic, filed for bankruptcy on March 29, listing $1.3MM in liabilities, including $885.2M to its US-based parent company, NVision Laser Eye Centres. The company had seen a decline in sales over the past few years, and its parent company advised in early March that it was no longer willing to fund the losses. Fuller Landau is the bankruptcy trustee.
605673 British Columbia Ltd., doing business as A&J First Aid, a Chetwynd, British Columbia-based supplier of mobile first aid treatment centres and occupational first aid attendants for the construction industry, was deemed bankrupt on March 13 on application by TD, owed approximately $516.4M. The company had not been operational since late January 2019, and in February 2019, Expert Bailiffs, at the direction of CRA, seized 20 of the company's vehicles in respect of outstanding amounts owing to CRA. PwC is the bankruptcy trustee.
A&Q Sons Management, Canadian One Home Health Care, and Q & Sons Management (collectively, the "Debtors"), which own and operate Fairfield Manor West Retirement Home and Fairfield Manor East Retirement Home — two retirement homes located in Kingston, Ontario — were placed in receivership on February 22 on application by Centurion Mortgage Capital. The Debtors currently list approximately $4.0MM in secured liabilities. In the spring and summer of 2018, following inspections of the retirement homes, the Retirement Home Regulatory Authority issued orders against the Debtors to revoke their operating licences. Additionally, around September 2018, the Kingston fire department issued evacuation orders at both facilities due to ongoing health and safety concerns. The Debtors subsequently defaulted in their mortgage loan obligations. BDO was appointed receiver. Counsel is Robins Appleby for the receiver and Chaitons for the applicant.
Avara Boucherville Pharmaceutical Services, a Boucherville, Quebec-based international pharmaceutical services company that delivers world-class contract manufacturing and technical services to the pharmaceutical industry, was placed in receivership on February 18 on application by Sandoz Canada, another pharmaceutical company. EY was appointed receiver. Miller Thomson is counsel to the applicant.
Coredent Partnership, an Edmonton, Alberta-based privately-held company comprised of five licensed dental clinics, was placed in interim receivership on December 21 on application by ATB Financial, owed approximately $6.6MM. The company also owes $2.7MM to its other creditors. PwC was appointed interim receiver. Counsel is Blakes for the applicant and Miller Thomson for the receiver.
Atlas Healthcare (Richmond Hill), a group of entities working to develop a six-story medical office building in Richmond Hill, Ontario, was placed in receivership on December 3 on application by Romspen, owed approximately $81.0MM. The project is behind schedule and over budget by approximately $39.0MM. The debtors' attempt to obtain creditor protection under the CCAA was denied in favour of the receivership. EY was appointed receiver. Counsel is Dickinson Wright for Romspen and Blaney for the receiver.