Carriage Hills Vacation Owners Association (the "Association"), a not-for-profit corporation made up of approximately 9,000 interval owners who own an interest in Carriage Hills Resort — a timeshare resort located in Horseshoe Valley, Ontario — had an administrator appointed under s. 101 of the Courts of Justice Act over its assets and the land on which the resort operates. The Association, which incurred an operating deficit between 2015 and 2018, attributes its financial issues to various factors. The market for timeshares has declined in the last several years, and there are a number of unit holders who have abandoned their units and refuse to pay their share of the operating costs. At the same time, as the resort continues to age, the Association continues to incur increasing capital expenditures to maintain the property. These difficulties have been exacerbated by the COVID-19 pandemic as owners are not allowed to use their timeshare intervals until at least June. Due to its corporate structure as a non-share corporation, the Association does not have a viable way to remedy the underlying issues outside of a court-supervised restructuring. The Association intends to devise a process to address the delinquent owners and allow non-delinquent owners to "opt-out" and relinquish their interest in the resort. The resort's neighbouring "sister" resort, Carriage Ridge Resort — which has approximately 4,000 members — is in the same situation and its members' association, the Carriage Ridge Owners Association, has applied for identical relief in separate proceedings. The application hearing was attended by approximately 1,000 people via Zoom judicial video conference. BDO was appointed administrator. Counsel is TGF for the applicants, Aird & Berlis for the administrator and Blaney McMurtry for certain individuals.
Flighthub Group Inc., a Montreal, Quebec-based online travel agency powered by proprietary technology platforms, obtained protection under the CCAA on May 8. Since 2012, the Group has experienced significant growth and now has business relationships with more than 200 airline companies around the world. However, monthly revenues plummeted when the COVID-19 pandemic broke out and brought the travel industry to a standstill. In response to the rapid decline in revenue resulting from travel restrictions, the company implemented several cost-saving measures, including downsizing its Canadian and American workforces. Despite these efforts, the Group recorded a $8.0 million loss in March. In addition to these financial difficulties, the Group is also currently involved in several lawsuits and investigations regarding certain of its business practices, such as customer complaints over cancellation policies and fare increases. MNP was appointed monitor. Counsel is Stikeman Elliott for the Group and Dentons for the monitor.
SNFW Fitness B.C. Ltd., which operates 29 fitness facilities in British Columbia, filed an NOI on April 3, listing approximately $35.4 million in liabilities, including $32.0 to BMO. Founded in 2009 through a merger between Fitness World and Steve Nash Sports Club, the company's fitness facilities currently do business as "UFC Gym" and "Steve Nash Fitness World and Sport Club." On March 17, the company issued a notice to all of its members that due to the Province of BC limiting gatherings of 50 people to slow the spread of COVID-19, all facilities would be shut down effective immediately. Subsequently, the company terminated all of its staff except a handful of key personnel. The company's Board of Directors estimates that the company will require an equity injection of over $10.0 million to fund COVID-19 shutdown costs and operating losses to get a break-even level after COVID-19 restrictions are lifted. The company is now seeking court approval of a sale and investment solicitation process. The Bowra Group is the proposal trustee. Counsel is Lawson Lundell for the company and Dentons for BMO.
The Office de la protection du consommateur has appointed PwC as the administrator for claims filed with the Compensation Fund for Customers of Travel Agents ("CFCTA") in connection with the COVID-19 pandemic. Travellers who purchased tourism services such as accommodations, cruises, excursions, etc. from a travel agent licensed in Quebec are covered by the CFCTA's protection. The CFCTA may reimburse tourism services that have been paid for but not received. It may also be used to compensate customers who have had to extend their stay, in particular where their flight has been cancelled.
Bridge Attainable Housing Society, a Calgary, Alberta-based not-for-profit company, was placed in receivership on February 14 on application by the City of Calgary. By an agreement of purchase and sale ("PSA") with the City, the company agreed to purchase certain lands in Alberta for the purpose of developing an affordable residential housing project. Pursuant to this PSA, the parties agreed to enter into various loan and security agreements in favour of the City. The City alleges that the company did not perform a number of its obligations under these agreements. For example, the company failed to maintain in good standing its status as a not-for-profit organization, and failed to provide the City with audited financial statements for certain years. Given these ongoing issues, the City has lost confidence in the company's ability to oversee the housing project or protect the City's security. Grant Thornton was appointed receiver. Bennett Jones is counsel to the applicant.
9265988 Canada Corp., a Toronto, Ontario-based that owns the property municipally known as 201, 227 and 235 King Road, Richmond Hill, Ontario, was placed in receivership on February 12 on application by MarshallZehr Group, owed together with other lenders approximately $19.0 million. Dream Maker Developments, the property's developer, was planning to construct 178 stacked townhomes on the property to be known as "Yonge & King Urban Towns". Since the loan was advanced to the debtor in the summer of 2018, however, there has been little progress on the development. No construction has commenced, and the debtor is still in the process of obtaining site plan approval. The lenders have not received a payment since October 2019 and the debtor has provided no information to suggest that it will be in a position to repay the loan on its maturity date. KSV was appointed receiver. Counsel is Chaitons for the applicant and the receiver.
Tri-Ag Implements, a Wainwright, Alberta-based agriculture equipment supplier, filed an NOI on February 10, listing $15.4 million in liabilities, including $4.7 million to CNH Industrial Capital Canada, $3.7 million to Farm Credit Canada, $2.8 million to De Lage Landen and $2.7 million to Encompass Credit Union. A few days prior to the NOI filing, on February 6, an interim receivership order was granted over the assets subject to FCC's security. FCC provides the company with floor plan financing and became worried when it was discovered that at least five pieces of machinery had recently been sold without the sale proceeds being remitted to FCC. The Bowra Group is the proposal trustee. EY is the interim receiver. Counsel is Reynolds Mirth Richards & Farmer for the company and Sharek Logan & van Leenen for FCC.
Tough Mudder Events, the Canadian subsidiary of a US-based company, Tough Mudder, which organizes endurance events involving obstacle courses in the mud, filed an NOI on December 30. The US-based company has been ensnared in a shareholder dispute which has negatively affected its operations. On January 7, Valley Builders, Trademarc Associates, and David Watkins Homes - certain of the company's US creditors, which are owed in excess of $855.0 thousand - filed an involuntary petition for Chapter 11 bankruptcy in the US. The Canadian NOI was filed to stay creditors and allow the company to close an anticipated transaction for the non US-based businesses. Farber is the proposal trustee. TGF is counsel to the company.
2145744 Ontario Limited, owner of real property municipally known as 203 Indian Road South, Sarnia, Ontario, was placed in receivership on December 16 on application by Laurentian Bank, owed approximately $3.7 million. The property contains a Shell-branded retail gas station and a Burger King restaurant, owned by related companies. In September, CIBC obtained, on an ex-parte basis, a receivership order over this company and certain other related companies. Seeking to protect its own interests, Laurentian requested, and was granted, an order carving out this company from the other receivership proceedings. KSV was appointed receiver. Counsel is Chaitons for the applicant and DLA Piper for the receiver.
Boulder Creek Golf Course and Silverwing Golf Course, two related golf courses near Calgary, Alberta, were placed in receivership on December 12 on application by BMO. PwC was appointed receiver. Counsel is Gowling WLG for the applicant and Torys for the receiver.