Greencore Composites, a Sarnia, Ontario-based manufacturer of natural fiber reinforced thermoplastic materials, was placed in receivership on April 16, listing approximately $1.2MM in liabilities. Growthworks Commercialization Fund, Wayne Meddever and Ian Inch appointed Dodick Landau as private receiver.
Taylor Steel and Stainless, a Boucherville, Quebec-based company that specializes in welding and metal manufacturing, filed for bankruptcy on April 10, listing $227.4M in liabilities, including $103.7M to Revenue Quebec. MNP is the bankruptcy trustee.
HB Solar Canada, a Concord, Ontario-based supplier of photovoltaic/solar energy array mounting systems and related equipment, filed an NOI on April 10, listing $2.9MM in liabilities, including $800.0M to RBC. By 2016, the company had reached the number one position in the Ontario market for solar rooftop racking. However, a confluence of factors eventually led to its insolvency. First, the local market for solar rooftop systems contracted by approximately 80% when changes were made to the Feed-In Tariff Program, which was launched in 2009 to encourage and promote greater use of renewable energy sources. Second, the company faced increased competition, thus forcing it to reduce prices and earn lower margins. Finally, it experienced a rise in bad debt write-offs and an accompanying reduction in available net working capital. Although the company has increased its efforts to attract additional capital from lenders and investors, no one is willing to invest further if there is no formal restructuring. As a result of these issues, the company now faces a liquidity crisis and is unable to maintain its obligations to creditors. Dodick Landau is the proposal trustee. Pallett Valo is counsel to the company.
HCT Metal Manufacturing, a Calgary, Alberta-based company, was placed in receivership on April 4 on application by Canadian Western Bank. EY was appointed receiver. Counsel is Faskens for the applicant and Walsh Law for the company.
BionX Canada, an Aurora, Ontario-based company that designs, manufactures and sells electronic propulsion systems for bicycles, was placed in receivership on February 27 on application by Stronach Consulting, owed approximately $21.9MM. In February 2018, as the company's financial situation was deteriorating, General Motors - who was a primary customer - notified the company that it was considering commencing a claim for $5.3MM (USD) for alleged breaches of their purchase contract. In addition to these existing financial difficulties, the company failed to find a purchaser of its shares or assets. Stronach was subsequently unwilling to provide further funding to the business outside of a receivership proceeding to market. During the proceedings, it will provide funding of approximately $1.3MM to administer the receivership and execute the proposed sales process. Grant Thornton was appointed receiver. Counsel is Stikeman Elliott for the applicant, Cassels Brock for the company, Speigel Nichols Fox for GM and Brauti Thorning Zibarras for the receiver.
Western Precast Group, a Spruce Grove, Alberta-based company that designs and builds precast concrete products, was placed in receivership on February 7 on application by ATB Financial, owed approximately $5.1MM. Grant Thornton was appointed receiver. McCarthy Tétrault is counsel to the applicant.