Belkin Holdings and certain other related companies were placed in receivership on August 2 on application by BMO, owed approximately $8.1 million. The companies' primary asset is a 6 story apartment building in Winnipeg, Manitoba referred to as Kelly Towers. The companies' management failed to respond in a timely fashion or at all to requests for financial and other information, and with its financial benchmarks deteriorating, RBC demanded repayment from the companies. MNP was appointed receiver. Bennett Jones is counsel for the applicant.
R.D.E. Ventures, a Spruce Grove, Alberta-based equipment rental company, was placed in receivership on August 16 on application by National Bank, owed approximately $11.0 million. In March 2019, the then CFO of the company contacted National Bank requesting additional time to provide audited financial statements. By late April, the statements had not yet been provided, despite repeated assurances from the CFO that the statements were a day or two away from being delivered. In May, 2019, National Bank elevated the request for statements to the president of the company, who investigated and discovered that auditors had not even been hired. Concerned with this news, as well as the deteriorating financial position and defaults of the company, National Bank issued a demand for repayment on July 9, which triggered an NOI filing by the company. Further discoveries of funds being diverted to another financial institution, as well as a lack of a feasible restructuring proposal or plan, led National Bank to request that the proposal proceedings be terminated. FTI was appointed receiver. Counsel is McCarthy Tétrault for the applicant and Ogilvie for the company.
Imperial Excavating, a Holyrood, Newfoundland-based excavation company, filed for bankruptcy on August 16. Deloitte is the bankruptcy trustee.
2547357 Ontario Inc., owner of the property municipally known as 365 Bayly Street West, Ajax, Ontario, was placed in receivership on August 7 on application by a group of secured creditors owed approximately $2.6 million. The company's property is a vacant piece of land on which the debtor had planned to build a car dealership. The debtor subsequently failed to make interest payments on the loan due to its bank account being frozen. When counsel for the applicants proposed a consensual arrangement to sell the property through CBRE, it learned that the debtor had already signed an exclusive listing agreement with another brokerage. Concerned that it would be cumbersome, if not impossible to achieve a sale of the property on a consensual basis, the applicants moved to have a court-supervised officer appointed to properly market and sell the property. Rosen Goldberg is the receiver. Counsel is Dickinson Wright for the applicants.
Bant Printocut Limited, a Markham, Ontario based provider of print finishing services, filed for bankruptcy on July 31, listing liabilities of $515.0M. James Williams & Associates was appointed bankruptcy trustee.
Le tour des champions de Montréal, a Montreal, Quebec-based company that was organizing an equestrian show jumping event planned for September 2019 in Montreal, Quebec, filed for bankruptcy on July 30, listing $1.6MM in liabilities, including $785.0M to Dutch-based Global Champions Tour B.V. Founded in 2005, the Longines Global Champions Tour is an annual show jumping series that brings together the top show jumpers in the world to compete in prestigious locations such as Paris, Monaco, Shanghai and Rome. Montreal was slated to be a destination for the first time in 2019, but event organizers announced on July 23 that they were cancelling the event, claiming that they could not meet on a timely basis the winning conditions to ensure the success of the event. PwC is the bankruptcy trustee.
Sunrise Acquisition (Bond Head), the owner of the property municipally known as 2875 Highway 27, Bond Head, Ontario, was placed in receivership on July 23 on application by a group of private lenders owed approximately $4.7 million under a second mortgage. The company purchased the property for $11.7 million in June 2016 with the intentions of developing it into 119 single family homes. The purchase was partially financed by a $7.6 million vendor-take-back mortgage. In June 2019, the applicants learned that the VTB loan had not been repaid when it came due and the VTB lender would be initiating mortgage enforcement proceedings against the company. An appraisal conducted by the applicants indicated that the VTB lender would be paid out in full from a sale but the applicants' second mortgage, and the subsequent mortgages, were at risk. The applicants therefore elected to have a receiver appointed to protect and realize upon their mortgage. Rosen Goldberg email was appointed receiver. Counsel is Corsianos Law for the applicants and N.H. Winter Law for the company.
Susie Parovel and Gino Porco had their property municipally known as 1050 Shoreview Drive, Innisfil, Ontario placed in receivership on July 8 on application by a group of lenders owed approximately $1.9MM under a second mortgage loan. A first mortgage to Equitable Trust had been in default for many months, and the applicants had been forced to make payments on this mortgage to avoid Equitable from selling the property. In April 2019, a $200.0M third mortgage was registered against the property in favour of Anthony Abballe, without prior notice to or consent of the applicants. A month later, the applicants learned that the property had been transferred to a numbered company related to Abballe under what is alleged to be very suspicious circumstances. That company then listed the property for sale. Of the view that the debtors could not be trusted, the applicants moved for a receiver to be appointed to sell the property under court supervision. Rosen Goldberg was appointed receiver. Dickinson Wright is counsel for the applicants.
Xela Enterprises, a Toronto, Ontario-based holding company with a wide range of commercial ventures in Canada, the United States and South and Central America, was placed in receivership on July 5 on application by Margarita Castillo. The receivership order is the culmination of Castillo's attempts to obtain relief from alleged oppression by her late father, Juan Arturo Gutierrez, and brother, Juan Guillermo Gutierrez. Castillo was awarded a judgment of over $5.0MM in 2015 for allegedly being pushed out of the family business but has been thwarted at every turn in her attempts to collect the remaining $3.5MM owed to her. Xela has repeatedly refused to answer questions about the operations of its subsidiaries, though there is no dispute that it indirectly owns shares in what is considered one of Central America's largest poultry producers. These shares are estimated to be worth millions of dollars, but the business is ensnared in litigation with other family members in Guatemala (the "Cousins"). The receivership order was granted over a competing CCAA application by Xela, which argued that it was insolvent as a result of, among other things, the Cousins' withholding of hundreds of millions of dollars of dividends from the poultry business. KSV was appointed receiver. Counsel is Bennett Jones for the applicant, Groia & Company for the company and Aird & Berlis for the receiver.
6910 HWY7 Inc., a company which owns the real property known as 6910 and 6950 Hwy No. 7 East in Markham, Ontario, was placed in receivership on June 4 on application by Am-Stat Corporation, owed approximately $24.4MM. The property consist of two vacant parcels of land adjacent to the Markham Stouffville Hospital. The land is intended as the site of a future residential and commercial development. Rosen Goldberg was appointed receiver and is tasked with realizing on the property through a formal marketing and sale process. Counsel is Dickinson Wright for the applicant and Teplitsky, Colson LLP for the company.