Icon Stone & Tile, a Calgary, Alberta-based stone fabrication and installation business, filed for bankruptcy on September 3, listing approximately $2.8 million in liabilities, including $1.6 million to HSBC. Grant Thornton was appointed bankruptcy trustee.
Machine Works Industrial, a Fort Saskatchewan, Alberta-based contractor specializing in welding and steel fabrication, was placed in receivership on August 13 on application by RBC, owed approximately $2.0 million. Deloitte was appointed receiver. Counsel is Burnet, Duckworth & Palmer for the applicant and Duncan Craig for the receiver.
Schendel Mechanical Contracting, an Edmonton, Alberta-based mechanical contractor, was placed in receivership on July 19 on application by ATB Financial, owed approximately $18.1MM. One of Alberta's largest construction companies, the company had been successful for decades but hit a rough patch in late 2018 when work on one of its major projects, the Grande Prairie Regional Hospital, was halted by the Province of Alberta. The work stoppage affected Schendel's profitability, eventually causing it to default on amounts owing to ATB. In March 2019, ATB issued demand letters and notices of intention to enforce security. In response, the company filed an NOI and has been working hard to find a lifeline that would allow it to continue in business. On July 10, it filed a proposal to ATB and its other creditors. ATB immediately moved for an order deeming the proposal to be refused and an order appointing a receiver. ATB's position was that it had a veto over the proposal by the solo nature of its secured claim and it intended to vote against the proposal, based on a host of factors, including its perception that it would fare better in a bankruptcy or receivership than under the proposal. The orders were granted and PwC was appointed receiver. Counsel is McCarthy Tétrault for the applicant, Bennett Jones for the company, Miller Thomson for the receiver and MLT Aikins for the proposal trustee, Grant Thornton.
VistaCare Communications, a Bedford, Nova Scotia-based telecommunication infrastructure service provider, filed an NOI on June 19. Employing approximately 350 full time employees, the company experienced exponential growth between 2015 and 2018, with revenue growing from $24.0MM to $50.6MM. In 2018, it was discovered that the company's financial results had not been properly recorded which resulted in an adjusted revenue value which was lower than expected, while the company's cost base remained high. The company responded by immediately replacing certain management positions and working to implement operational improvements, but the company's financial position has remained a challenge. The company's loan with BMO is currently $6.0MM out of margin and the company has made the decision that a formal restructuring is required. Grant Thornton is the proposal trustee. Counsel is Stewart McKelvey for the company and Cox & Palmer for BMO,
Cross Country Installation & Service, a Toronto, Ontario-based equipment installation and project management company, which provides its installation services to communities all across Canada, filed for bankruptcy on May 8. PwC is the bankruptcy trustee.
Groupe Paquette Mécanique du Bâtiment Inc., a Laval, Quebec-based mechanical contractor, had its assets placed in receivership on May 6 on separate applications by Caisse Desjardins, owed approximately $7.0MM and Fiera, owed approximately $3.2MM. MNP was appointed receiver over the company's equipment, tools and rolling stock and BLT Lapointe was appointed receiver over the remaining assets. Counsel is Dentons for Fiera, Gowlings WLG for Caisse Desjardins and Miller Thomson for the company.
Innova Global, a Calgary, Alberta-based provider of noise control and waste recovery system solutions for industrial sites worldwide, was placed in receivership on April 1 on application by ATB, owed together with a syndicate of other lenders approximately $74.2MM. In February 2019, the company advised ATB that it anticipated defaulting on its credit agreement because it was unable to make a required repayment of $2.5MM due on February 29. Despite several extensions and extensive negotiations, the parties have been unable to find a collaborative solution to address the liquidity challenges. When TriWest Capital Partners, the company's indirect private equity sponsor, advised in March that it was unwilling to either invest capital into the business or purchase all or a portion of the lenders' security, ATB demanded repayment of the debt. PwC was appointed receiver. Counsel is McCarthy Tétrault for the applicant and Stikeman Elliott for the company.
Soliman & Associates Law Corporation dba Lonsdale Law, a North Vancouver, British Columbia based law firm, filed an NOI on March 25, listing 658.5M in liabilities, including $332.5M to TD and $185.7M to CRA. Bowra Group is the proposal trustee.
Schendel Mechanical Contracting, an Edmonton, Alberta-based mechanical contractor, filed an NOI on March 22, listing $37.2MM in liabilities, including $18.1MM to ATB. The company has accused the provincial government of owing them $26.0MM for work done on the Grande Prairie Regional Hospital, a $760.0MM project that Schendel has been working on for almost 6 years and that has been plagued with problems. Grant Thornton is the proposal trustee.
Kel's Electrical Contracting, an Edmonton, Alberta-based full-service electrical company, filed for bankruptcy on March 21, listing approximately $663.3MM in liabilities, including $244.0M to Eecol Electric. Bowra Group is the bankruptcy trustee.