International Fitness Holdings Inc., International Fitness Holdings LP, and World Health North LP (collectively, the “Company”), which operates 21 fitness clubs, as well as spin and CrossFit studios, in Calgary and Edmonton, filed an NOI on April 23, 2021. As at March 31, 2021, the company owed approximately $72.9 million to its two main secured lenders, CIBC and Trifit Holdings (GP) Ltd. (the company's general partner). Subsequent to the Alberta Government’s decision to increase COVID-related restrictions, the Company closed all its clubs and laid off a significant number of employees in mid-March 2020 and implemented a number of strategies to attempt to safeguard the longer-term operations including negotiating rent deferrals with landlords and accessing the Canada Emergency Wage Subsidy and the Canada Emergency Commercial Rent Assistance and Canada Emergency Rent Subsidy programs. In September of 2020, the Company engaged MNP to lead a strategic process, including a sale of the Company’s assets. This culminated in an asset purchase agreement being entered into between the Company and an arm's-length purchaser that will be finalized while the Company is under creditor protection. KPMG was appointed as proposal trustee. Counsel is Osler for the proposal trustee.
2624827 Ontario Inc., a Brampton, Ontario-based company, had its property municipally known as 105 Main Street in Parkhill, Ontario (the "Mortgaged Property") placed under receivership on April 19 on application by C & K Mortgage Services Inc., owed approximately $2.1 million under a loan between the parties (the "Loan"). The Mortgaged Property consists of a .47 acre parcel upon which an Esso station with a small convenience store and vacant restaurant previously operated. Due to a fuel shortage and insufficient funds to replenish the fuel inventory, the gas station was eventually shut down. The Loan is currently in financial default and the applicant has not received any payments since January 12, 2021. Rosen Goldberg was appointed receiver. Dickinson Wright is counsel to the applicant.
Ontario Electronic Stewardship ("OES"), a not-for-profit organization that operates a regulated recycling program in Ontario, submitted a wind-up plan (the "Plan") for its Waste Electrical Equipment Program to the Resource Productivity and Recovery Authority in July 2019. As contemplated by the Plan, the board of directors of OES passed a resolution in February 2021 requiring OES to be wound up voluntarily under the provisions of the Corporations Act (Ontario). On April 1, Deloitte was appointed liquidator.
WG London Fitness Inc. et al., which operate a chain of 16 fitness centres from leased premises across southern Ontario under the “Crunch Fitness” banner (collectively, the "Respondents"), had Richter appointed as monitor over their assets and properties on March 4 on application by BMO, owed approximately $11.7 million. In late September 2020, BMO learned for the first time that the respondents owed at least $1.1 million in unremitted HST and employee source deductions. These arrears are in addition to the $1.4 million the Respondents owe to their landlords. Currently, the Respondents are unable to carry on business and pay their creditors without further support from BMO, which BMO is not prepared to provide. BMO's application to appoint a receiver was adjourned and Richter was appointed monitor. Counsel is Miller Thomson for BMO and Lerners for the Respondents.
Bryn Gwyrdd Holdings Inc. ("BGHI") and Mynyddoedd Holdings Inc. ("MHI"), Vancouver, British Columbia-based companies, were placed in liquidation on March 4. In December 2017, David Standish and John Milsom of KPMG UK were appointed receivers over 27 companies, including BGHI and MHI which held properties in Canada. MNP was appointed liquidator. Farris is counsel to the applicants.
Yoga Centre Toronto, a Toronto, Ontario-based not-for-profit yoga centre, filed for bankruptcy on December 23 after its revenue decreased significantly due to the COVID-19 pandemic and, consequently, the centre could not sustain payment of debts related to the financing of leasehold improvements at its studio and other debts. Albert Gelman Inc. is the bankruptcy trustee.
Cambridge Group Inc. (the "Group"), which is comprised of three boutique health clubs in downtown Toronto — the Cambridge Club, the Adelaide Club and the Toronto Athletic Club — obtained protection under the CCAA on December 11, listing approximately $7.0 million in liabilities, including $2.0 million to BNS. Since March, the three clubs have remained temporarily closed. Despite sweeping cost cutting measures, the elimination of a substantial portion of the Group's revenue for almost nine months has resulted in a financial strain that cannot continue on the current path. For the period from March to August, the Group's revenues were approximately 83% below projected revenues for that period. In addition to financial difficulties resulting from the COVID-19 pandemic, the Group is currently facing litigation and threats of litigation. It is forecasted that the Group will not have sufficient funds after January 4, 2020 and, as such, will not be able to make the term loan payment to BNS due in January. Grant Thornton was appointed Monitor. Counsel is Miller Thomson for the Group, Cassels Brock for the Monitor, and Harrison Pensa for BNS.
6773982 Canada Inc. and 6317081 Canada Inc. (collectively, the "Debtors"), which together own and operate Sunnyside Footsteps Parent Centre — a daycare facility in Ottawa, Ontario — were placed in receivership on November 30 on application by BNS. The Debtors owe approximately $845.0 thousand to Scotia Mortgage Corporation. After the daycare's operations ceased in March 2020 as a result of the COVID-19 related lockdowns, BNS attempted to enter into a forbearance agreement with the Debtors. However, the agreement was never signed. Moreover, the director left the country and listed the real property for sale. BNS, which was not certain the property was being maintained, later became aware that the property listing was being reduced to a point where the ability of the Debtors to repay their indebtedness may not have been possible. MNP was appointed receiver. Counsel is Harrison Pensa for the applicant and Soloway Wright for the receiver.
853405 Alberta Ltd., which operated a fitness centre under the name “Peak Physique Gym and Fitness Centre” in the Town of St. Paul, Alberta, was adjudged bankrupt on November 18, 2020, on joint application by ATB Financial (“ATB”) and Servus Credit Union Ltd. On March 29, 2019, ATB commenced foreclosure proceedings in the Court of Queen’s Bench of Alberta against the company for failure to pay the indebtedness owed to ATB. On December 6, 2019, real property and certain personal property owned by the company were sold in the foreclosure action and proceeds from the sale of the Lands were applied to ATB’s indebtedness. The company ceased operations in February 2020 as a result of the foreclosure action and sale of the company’s real and personal property. The Bowra Group Inc. was appointed trustee in bankruptcy.
1075397 Alberta Ltd., which owns certain real property in Alberta, had its property placed under receivership on October 27 on application by Panterra Mortgage & Financial Corporation ("Panterra"), owed approximately $3.6 million. In December 2014, the company granted a demand collateral mortgage to Paragon Capital Partners Ltd. which was later assigned to Panterra. Panterra alleges that a sale of the property will generate insufficient value to repay the indebtedness and it will suffer a shortfall from the enforcement of the company's mortgage. As such, the appointment of a receiver and manager over the property is required in order to protect Panterra's interests. MNP was appointed receiver and manager. Counsel is Burnet, Duckworth & Palmer for the applicant, DLA Piper for the company and MLT Aikins for the receiver.