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.
A1 Landscaping Inc., a residential landscaping company based in Kitchener, Ontario, filed for bankruptcy on September 10, listing approximately $40,000 in liabilities. The company struggled with low sales due to the pandemic and as a result of an injury to the owner. The company had no employees. It ceased operations around March, 2020. MNP is the bankruptcy trustee.
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.
Shamrock Valley Enterprises Ltd. (“Shamrock”), an Elk Point, Alberta-based provider of services in the form of general earthworks, oil and gas infrastructure, grading, road building, and fluid hauling, had a receiver appointed over its assets on application by Canadian Western Bank, owed approximately $3.9 million. The Receivership Order was granted on July 30, but stayed by the Court of Queen’s Bench of Alberta until August 27, 2021, when a further Order was granted lifting the stay. The Bowra Group Inc. was appointed receiver. Counsel is McLellan Ross for Canadian Western Bank.
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.