Healthcare

12411300 Canada Inc., which operates two medical clinics located in Mississauga and Brampton, Ontario called Erin Mills Health & Wellness, was placed in receivership on July 22, on application by Triple-I Capital Partners Inc., owed approximately $6.9 million. The company has defaulted on various terms of the Triple-I loan, including by failing to repay the loan on the maturity date, allowing over $50,000 of tax arrears to accrue, and granting a subsequent $2 million charge on the real property from which it operated without Triple-I's prior consent. The company also appears to have abandoned the real property and ceased operations. Crowe Soberman was appointed receiver. Counsel is Scalzi Professional Corporation for Triple-I, Atkinson Law for the company and Miller Thomson for the receiver. By Dina Milivojevic

Southmount Healthcare Centre Inc. and certain affiliated companies (collectively, the "Debtors"), which together owned and operated seven medical office buildings and a parking lot across Ontario, were placed in receivership on June 29 on application by American General Life Insurance Company, Lexington Insurance Company and The Variable Annuity Life Insurance Company (collectively, the "Applicants"), owed approximately $68 million. In 2016, the Debtors owned three medical office buildings. The Applicants advanced a loan to the Debtors in the principal amount of $70 million to allow the Debtors to purchase four more medical office buildings and a parking lot and to refinance the three buildings that were already owned. The Debtors have failed to make a payment under the loan since December 2019, before the COVID-19 pandemic. KPMG was appointed receiver. Counsel is Blakes for the Applicants, Norton Rose for the receiver and Weisz Fell Kour for the legal owners of the properties.

Pulse RX Inc. and Family Pharmacy Clinic Inc., Woodbridge, Ontario-based companies which carry on business as a pharmacy focusing on servicing long term care and retirement residences, were placed in receivership on June 10 on application by 1951584 Ontario Inc. (dba Maxium Financial Services), owed approximately $1.4 million pursuant to a fixed rate promissory note between the companies and the applicant's predecessor in title, Desante Financial Services Inc. The companies have not made any payments to the applicant since June 2020. MNP was appointed receiver. Counsel is Wilson Vukelich for the applicant and Weisz Fell Kour for the receiver.

O2 Industries Inc., a Kitchener, Ontario-based company that designs and sells personal respirators for consumer, healthcare, and military/law enforcement markets, was placed in receivership on May 27. The company has experienced severe financial challenges as a result of declining sales, revenues, and substantial unsold inventory. The onset of the COVID-19 pandemic had created substantial demand for personal protective equipment ("PPE"), including masks and respirators. However, the company experienced a drastic decline in sales volumes as consumer demand for PPE peaked and the market became saturated with excess supply. Despite the bridge financing provided by lenders, the company has been unable to to execute on its business plan to attract additional capital from new investors or generate liquidity from the sale of product inventory. As part of the receivership proceedings, the receiver will solicit proposals for a sale of the company's business and assets. RSM Canada was appointed receiver. Goodmans in counsel for the applicant.