Nimbus Water Systems Inc., along with several related companies (collectively, the "Nimbus Group"), were placed in receivership on August 23 on application by National Bank (the "Bank"), owed approximately $11.7 million. The Nimbus Group is a Canadian privately owned and operated group of companies located in North York, Ontario, that provides sales, installation, and service of water treatment systems for residential, commercial, and industrial clients across Canada. By letters dated October 2020, November 2020, and April 2021, the Bank advised the Nimbus Group of their obligations after they defaulted on various obligations to the Bank. In April, the Nimbus Group entered into a forbearance agreement whereby the Bank agreed to forbear from enforcing its rights and remedies until June 30. Pursuant to the terms of the forbearance agreement, the parties consented to the appointment of BDO as the Bank's consultant to review the operations and financial position of the Nimbus Group. Currently, the forbearance agreement is at an end and the Bank has been continuing to support the Nimbus Group in the face of ongoing defaults. BDO was appointed receiver. Counsel is TGF for the Bank, Capo Sgro for the Nimbus Group and Chaitons for JLHD Investments Inc., a PPSA registrant.
ADG Architectural Design Group Inc., a Markham, Ontario-based architectural firm specializing in design, building programming, and urban design, filed for bankruptcy on June 28, listing approximately $145.4 thousand in liabilities, including $34 thousand to CRA. The company attributes its financial difficulties primarily to operational inefficiencies coupled with financial stress related to the COVID-19 pandemic. MNP is the bankruptcy trustee.
Team Syntegrity Americas Inc., a Toronto, Ontario-based provider of business consultancy services, filed for bankruptcy on June 11, listing approximately $15.7 million in liabilities, including approximately $14.6 million to RTI International ("RTI"), a North Carolina-based leading non-profit research institute, and RTI Syntegrity ("RTIS"). In June 2016, the company was acquired by RTI, which subsequently incorporated RTIS to be the direct owner of 100% of the company's shares as part of the acquisition. Since this acquisition, RTI has funded the company's sustained losses. In May, however, RTI notified the company's board of directors that it would cease funding the company at the end of the month. KPMG is the bankruptcy trustee. Torys is counsel for KPMG.
Duck Mountain Environmental Ltd., a Kamsack, Saskatchewan based Hydrovac excavation and potable water/septic service company, filed an NOI on May 31, listing approximately $1.9 million in liabilities. The Bowra Group is the proposal trustee.
Yellow Arrow Oiltools Ltd., an Edmonton, Alberta-based company that provided engineering services in the manufacturing, design, and customization of drilling motors and downhole drilling equipment to the oil and gas industry, filed for bankruptcy on April 23, listing approximately $1.3 million in liabilities, including $373.7 thousand to BMO. The company attributes its financial difficulties and operational challenges to the downturn in the oil and gas economy and unexpected health issues of key personnel. The Bowra Group is the bankruptcy trustee.
1908736 Ontario Limited (fka Cole Engineering Group Ltd.) and CEG Partners Inc., two Markham, Ontario-based companies that provide specialized advisory, consulting, and engineering solutions, filed for bankruptcy on March 26. Cole Engineering Group Ltd. lists approximately $2.2 million in assets and $3.7 million in liabilities, including $2.4 million to Mohsen Mortada. CEG Partners Inc. lists approximately $2,231 in assets and $1.0 million in liabilities. Farber is the bankruptcy trustee.
Watershed Solutions Inc. (“WSI”), a British Columbia-based consulting firm, was placed in receivership on February 19 on application by Street Quality Entertainment Ltd. (“SQE”), owed approximately $5.9 million. Prior to COVID-19, WSI, which had offices in Victoria, Toronto, and New York, consisted of a co-working division and consulting division to its core business. However, the co-working division ceased operations prior to the receivership appointment due to various pandemic-related indoor working rules and protocols. Between 2015 and 2017, SQE made advances totaling $4.0 million to WSI under a loan agreement. Although SQE initially agreed to forbear on enforcement when the agreement came to term in 2018, it has recently concluded it is no longer prepared to continue to forbear on its enforcement and has demanded full repayment of WSI's indebtedness. However, WSI is unable to repay SQE as it is out of cash. It is the intention of the receiver to continue operations of the consulting division given that there are still existing contracts. SQE's hope is that the receiver will also run a SISP for WSI and that this process will generate some recovery under the loan agreement. Grant Thornton was appointed receiver. Counsel is DLA Piper for the applicant and Lawson Lundell for the receiver.
Services Clean d'Oeil Inc., a Saint-Augustin-de-Desmaures, Quebec-based cleaning services company for residential and commercial buildings, serving notably clients in the hotel industry, filed an assignment in bankruptcy on February 8, 2021. In 2019 and 2020, the company acquired material and equipment to develop an expertise in commercial laundry services to be offered to its clients in the hotel industry. The recent pandemic and downturn in the hotel industry forced the company to cease its operations at the beginning of 2021. PwC was appointed bankruptcy trustee. Counsel is McCarthy Tétrault for CIBC, the secured lender, and Langlois Avocats for the trustee.
Tradesmen Enterprises Limited Partnership ("TELP"), a Calgary, Alberta-based limited partnership that provides general mechanical contracting and pipeline construction, assembly, and maintenance throughout Western Canada — along with its general partner, Tradesmen Enterprises Inc. (together with TELP, "Tradesmen") — filed NOIs on February 1. Tradesmen lists approximately $47.7 million in liabilities and $52.5 in assets. Until January 11, 2021, Tradesmen's principal contract was for the construction of a water management project for Teck Coal Limited (the "Project"). The Project was massively over budget, with the final projected cost of completion being more than four times the original budget of $32.0 million. In the course of Tradesmen's work on the Project, Teck Coal Limited also consistently delayed payment, which had a negative impact on Tradesmen's cash flow and its ability to pay subcontractors. Teck Coal Limited, which currently owes Tradesmen approximately $50.0 million, purported to terminate the contract on January 11, 2021. As a result, Trademen's only alternative was to seek court protection by filing the NOIs. KSV Restructuring is the proposal trustee. Counsel is Bennett Jones for the proposal trustee, Lawson Lundell for Tradesmen, and BLG for BMO, the senior lender.
Allied Track Services Inc., a Grimsby, Ontario-based provider of railroad construction, maintenance, and signal services throughout Canada, filed an NOI on January 21. The principal purpose of the restructuring proceedings is to create a stabilized environment to allow the company to enter a transaction for the sale of its business and assets through a “stalking horse” sale and investor solicitation process. KSV Advisory is the proposal trustee. Counsel is Bennett Jones for the company, Blakes for the proposal trustee and Chaitons for the DIP lender.