International Fitness Holdings Inc., International Fitness Holdings LP, and World Health North LP, which operated 21 fitness clubs and CrossFit studios in Calgary and Edmonton, were deemed bankrupt on July 8. The companies had previously filed NOIs to, among other things, effect the sale of their assets to Ayrfit West Inc. and certain related parties, as purchasers, following a strategic process run by MNP. The sale closed on June 18 and the companies were deemed bankrupt on July 8 after the extension period expired and no proposal was filed. KPMG is the bankruptcy trustee. Counsel is Osler for KPMG and BLG for the purchaser.
Nautilus Plus Inc., a Longueuil, Quebec-based company which operates a leading chain of corporately-owned fitness centres in Quebec, filed an NOI on June 14, listing approximately $42 million in liabilities, including approximately $28.4 million to BMO and $8.3 million to the Caisse de dépôt. Raymond Chabot is the proposal trustee.
The Estate of Paul Zigomanis (the "Estate") was placed into bankruptcy on June 10 by Farber, the estate trustee during litigation, for the general benefit of creditors. In April 2015, Paul Zigomanis was killed as a result of an explosion that destroyed the home in which he was living. The estate is insolvent and the bankruptcy filing was initiated in order to conduct a claims process and facilitate a distribution to creditors. Farber is the bankruptcy trustee.
Queen Mary Park Place Ltd., which owned and operated a commercial strip mall located in central Edmonton, Alberta, was placed in receivership on May 26 on application by CMLS Financial Ltd., owed approximately $2.9 million. The Bowra Group Inc. was appointed receiver. BLG is counsel to the applicant.
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.