Universal Mechanical Ltd. (“UniMech”), Movin’ Air Heating & Air Conditioning Ltd. (“Movin’ Air”), and Agincourt Limited (collectively, the “Companies”) each filed an NOI on September 6, 2022. UniMech and Movin’ Air respectively operated as mechanical and HVAC contractors in Calgary, Alberta. The Companies collectively listed $9.7 million in liabilities, including approximately $3.3 million to RBC. Due to project delivery delays, customer payments have been withheld or delayed, which resulted in liquidity pressures and the decision to file the NOI. Grant Thornton is the proposal trustee. DLA Piper is counsel for the Companies and Burnet, Duckworth & Palmer is counsel for the proposal trustee. By Dina Milivojevic
Merritt FuelCo Limited Partnership, Nicola Valley FuelCo Inc., Merritt Operations Services Limited Partnership, Nicola Valley Operations Services Inc., Fort St. James FuelCo Limited Partnership, Prince George FuelCo Inc., Fort St. James Operations Services Limited Partnership and Prince George Operations Services Inc., which were incorporated to provide fuel and services to an electricity generation project located in Fort St. James, British Columbia, were each adjudged bankrupt on June 7, on application by Veolia ES Canada Inc., a creditor and related party to the companies, owed approximately $7 million. In recent years, the project ran into significant issues, including: (i) construction delays and defects, which resulted in higher and unplanned expenses; (ii) major forest fires in British Columbia, which disrupted the biomass fuel supply in the area and increased Canadian softwood lumber tariffs; and (iii) the closure of several sawmills within the vicinity of the project site and the unavailability of fuel in the market. Deloitte is the bankruptcy trustee. Counsel is Stikeman Elliott for Veolia ES Canada Inc By Dina Milivojevic
Modern Acrylic Systems Ltd., a Winnipeg, Manitoba-based company whose primary business was providing exterior insulation and finishing services, was placed in receivership on May 18, on application by TD Bank, owed approximately $300,000 on a secured basis. The company had previously assigned itself into bankruptcy on April 25 and LC Taylor & Co. was appointed bankruptcy trustee. The bankruptcy trustee declined to act as agent for TD Bank in respect of the preservation and collection of the company's accounts receivable. Grant Thornton was appointed receiver. Counsel is MLT Aikins for TD Bank and Taylor McCaffrey for the receiver. By Dina Milivojevic
Clearford Water Systems Inc. (TSXV:CLI), an Ottawa, Ontario-based provider of unified water management solutions for the design, deployment, finance and operation of water infrastructure systems, filed an NOI on April 28. KSV is the proposal trustee. Perley-Robertson, Hill & McDougall for the company; DLA Piper for Morebath/Lexus (a secured creditor); and Aird & Berlis for the proposal trustee. By Dina Milivojevic
Tazarmc Inc., a Trenton, Ontario-based steel fabricator and service provider to multi-disciplined industrial and commercial construction projects throughout Canada and the United States, filed an NOI on April 20, listing approximately $4 million in liabilities, including approximately $1.3 million to Vulcraft Canada. KPMG is the proposal trustee. Counsel is Dickinson Wright for the company and KRB Law for National Bank. By Dina Milivojevic
Blugo Enterprise Inc. was placed in receivership on April 1, on application by Business Development Bank of Canada, owed approximately $1.1 million, together with applicable principal arrears, interest and other obligations as at December 6. Blugo is the owner of real property located at 46 Mimico Avenue, Toronto, Ontario, and Mr. Siddiqui is the principal of Blugo. He opposed the receivership on the basis that he had entered into an agreement to sell the property to a numbered company. Justice Cavanagh granted the receivership order, noting that the agreement was conditional and that the closing could be delayed by either party. BDO was appointed receiver. Counsel is Aird & Berlis for BDC. By Dina Milivojevic
Cirvis Consulting Inc., a Toronto, Ontario-based provider of business and management consulting services for the travel, tourism and hospitality industry, made an assignment in bankruptcy on March 3, listing approximately $800,000 in liabilities, including $600,000 to Desch North America Inc. The company was shut down at the outset of the pandemic, along with most of the travel industry, and it tried to pivot to sell specialty air filters. It built up an inventory of the air filters; however, sales were significantly lower than expected, and it took the Company almost two years to sell 10% of the initial inventory purchased. MNP is the bankruptcy trustee. By Dina Milivojevic
S & C Construction Consultants & Rentals Inc., a Lasalle, Ontario-based company which was in the business of providing new and rehabilitated lighting, hydro and communications infrastructure to both the private and public sectors, filed an assignment in bankruptcy on December 14, listing approximately $2.8 million in liabilities. Spergel (GRIP) was appointed trustee.
Quantum Power Services Inc., a full service electrical company operating in Edmonton, Alberta, filed an assignment in bankruptcy on December 13, 2021, listing approximately $70,000 in liabilities. The Bowra Group is the bankruptcy trustee.
Trident Processes Inc., an Abbotsford, BC-based provider of sludge treatment, resource recovery and wastewater treatment solutions, had a receiver appointed on October 28, on application by Export Development Canada, owed US$2.6 million. Trident has two subsidiaries in the US and has active operations in both Canada and the US. Pursuant to a forbearance agreement entered into on March 11, 2021, EDC agreed to forbear from enforcing its debt until May 14, 2021. During the forbearance period, an independent business review was conducted and identified potential improper payments being made to the company’s shareholders. Since the forbearance agreement expired in May 2021, Trident has not made any payment, reporting or other communications to EDC. In September 2021, the lawyer who maintains Trident's corporate records indicated that one of Trident's subsidiaries in the US was sold. PwC was appointed receiver. Counsel is Gowling (WLG) for EDC and Nathanson, Schachter & Thompson LLP for the receiver.