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.
Express Gold Refining Ltd., a Toronto, Ontario-based company in the gold refining business, obtained protection under the CCAA on October 15. This CCAA proceeding is not intended to be an operational restructuring. Rather, CCAA relief is required because of certain GST/HST commodity tax disputes, including CRA reassessments issued to the company which are in excess of $189.0 million, as well as CRA's refusal to pay the company's input tax credits ("ITC") since August 2018. CRA's diligence in approving and paying the company's claims for large amounts of ITCs is integral to the company's business. In November 2018, CRA expanded an ongoing audit to cover a 29-month period and announced that it would not only withhold any August 2018 ITCs, but also any future ITCs until the completion of the audit. It is unclear whether there are legal grounds to withhold payment of such off-audit ITCs. In May 2020, CRA issued a proposal stating its intention to reassess the company for the 29-month period, as it believed the company was engaged in a type of tax refund fraud called a "carousel scheme". Although the reassessments are currently being challenged in the Tax Court of Canada, they are still enforceable and the company cannot pay the $189 million penalty. Deloitte was appointed monitor. GSNH is general counsel and Baker & McKenzie is tax counsel for the company. Dentons is counsel to the monitor.
Family Fitness Inc., which operates four fitness centres in Regina, Saskatchewan under the business name "Evolution Fitness Gym", was placed in receivership on October 13 on application by BTA Real Estate Group Inc. ("BTA"), owed approximately $1.0 million in rent arrears. In August 2017, the company defaulted on its rent obligations owing to BTA, and has continued to be in arrears since that date. BTA alleges that the company has engaged in a systematic pattern of non-payment and non-performance of its obligations. Alvarez & Marsal was appointed receiver. Counsel is W Law Group for the applicant and Torys for the receiver.
Viva Financial Inc., Simply Comfort Inc., Consumers Choice Comfort Services Inc., and Ontario Consumers Home Services Inc., ("OCHS"), four related companies in the HVAC and filtration systems industry, filed for bankruptcy on October 1, respectively listing $572.3 thousand, $644.5 thousand, $1.5 million, and $1.6 million in liabilities. In September 2019, the Canadian Radio-television and Telecommunications Commission imposed a monetary penalty of $194.3 thousand on OCHS for making telemarketing calls outside permitted hours and to consumers whose telephone numbers were registered on a national "Do Not Call" list. OCHS was deemed to have committed 1.1 million violations of the Unsolicited Telecommunications Rules. Dodick Landau is the proposal trustee. Weisz Fell Kour is counsel to the proposal trustee.
RJ Burlington Inc., a Burlington, Ontario-based indoor trampoline park and franchisee of Rockin' Jump International, filed for bankruptcy on September 3, listing approximately $2.5 million in liabilities. Albert Gelman is the bankruptcy trustee.
Swizzlesticks Enterprises Inc., a Calgary, Alberta-based salon and spa, filed for bankruptcy on August 25, listing approximately $1.3 million in liabilities. PwC is the bankruptcy trustee.
William Peak Co-Operative Homes, a social housing property located at 1990 Whites Road, Pickering, Ontario, was placed in receivership pursuant to the Housing Services Act on July 22 on application by the Regional Municipality of Durham. An auditor's management letter issued in January 2020 noted significant deficiencies in the internal controls of the co-op's finances, including those related to conflicts of interest, financial statement accuracy, housing charges arrears and control over credit cards. In response, the municipality, as the designated service manager, appointed Deloitte as interim receiver in February 2020. Deloitte reported several areas of concern, including payments to parties related to board members, payments to contractors where payments were not commercially reasonable, credit card purchases using the co-op's card that did not appear to reflect legitimate expenses and potential misappropriation of housing charge payments. In June, the Region determined that a court-appointed receivership was required to finish stabilizing the co-op's operations and locate and train new members to become the co-op's new board of directors. Deloitte is the receiver. Blaney McMurtry is counsel for the receiver.
1001 Broadview Avenue Inc., a company that owns a pre-construction proposed 10-storey mixed use condominium development located in Toronto, Ontario, was placed in receivership on July 21 on application by Centurion Mortgage Capital Corporation ("Centurion"), owed approximately $8.1 million. The purpose of Centurion's loan was to refinance an existing mortgage to provide the company time to complete the zoning amendment and site approval required for the proposed development. To date, the development has stalled and the company has not yet commenced construction or gone to market to sell any units. BDO was appointed receiver. Counsel is Robins Appleby for the applicant and Adair Goldblatt Bieber for the company.
Upwood Park & Salvador Del Mundo Co-operative Homes, a social housing property located at 298 Queens Drive, North York, Ontario, was placed in interim receivership pursuant to the Housing Services Act on July 16. BDO was appointed interim receiver by the City of Toronto and is tasked with stabilizing the operations of the co-op.
Fitz's Mobile Welding Inc., a Harbour Grace, Newfoundland and Labrador-based company that provides welding and fabrication services, was deemed bankrupt on July 15 after creditors rejected its proposal. The company listed approximately $2.5 million in liabilities, including $230.4 thousand to CRA.