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.
Unique Restoration Ltd., which was engaged in the business of building maintenance and restoration services for multi-unit residential, commercial, and industrial projects primarily in British Columbia and Ontario, filed an NOI on January 4, listing approximately $10 million in liabilities, including a combined amount of approximately $5 million owing to RBC and VGNA Holdings Inc. The company's insolvency was caused in part by a prime contractor's failure to pay the company's invoices on a large renovation project, a stop work order issued by Worksafe BC on the project and litigation brought by the prime contractor against the company related to same. On January 28. the company filed materials in connection with a stay extension motion returnable February 3. However, on February 3, RBC sought and was granted an order appointing Fuller Landau as receiver. Counsel is Aird & Berlis for RBC and Minden Gross for the receiver. Counsel to the company in the NOI proceedings was Rory McGovern PC. Crowe Soberman was the proposal trustee.
EzTix Event Ticketing Inc., a Vancouver, British Columbia-based company that provides ticketing solutions to event organizers around the world, filed an NOI on November 30 and a proposal to its creditors on December 29. The company lists approximately $1.1 million in liabilities. McEown and Associates is the proposal trustee.
Fossil Water Corporation, a Calgary, Alberta-based company that provides water treatment consulting services and supplies custom-built modular water treatment systems primarily for the oil and gas industry, was adjudged bankrupt on November 19 on application by RBC, owed approximately $585.5 thousand. The company has ceased to meet its liabilities as they become due as the indebtedness to RBC remains entirely unpaid and there appear to be multiple outstanding judgments registered against the company. Grant Thornton is the bankruptcy trustee. McMillan is counsel to the applicant.
Nauss Pluming & Heating Inc., a Sudbury, Ontario-based plumbing company, was placed in receivership on November 13 on application by CIBC, owed approximately $1.1 million. Last November, the parties entered into a settlement agreement pursuant to which the company consented to the appointment of MNP as receiver unless it fully repaid its indebtedness by January 10, 2020. The company failed to do so and counsel for the parties attended a hearing in January to appoint the receiver. However, the application was adjourned to permit a motion to be brought to enforce the alleged settlement action. However, various scheduling conflicts and COVID-19 shutdown measures had resulted in the motion being adjourned until further notice. MNP was appointed receiver. Gowling WLG is counsel to the applicant.
D’Amani Stucco Solutions Inc., a Saskatoon, Saskatchewan-based company that provides exterior stucco finishing for residential and commercial buildings, filed an NOI on August 13, listing approximately $1.9 million in liabilities, including $670.0 thousand to Adexmat Inc. The Bowra Group is the proposal trustee. W Law Group is counsel to the company.
Atlantica Content Studios Inc., a Markham, Ontario-based company that provides retail clients with creation, design, photography, and production of digital and traditional creative content, including online content and traditional print flyers, filed an NOI on April 24, listing $2.5 million in liabilities. The COVID-19 shutdown of non-essential services resulted in a dramatic decrease in weekly sale flyer production and distribution and a corresponding reduction in retail customer’s requirement for new and creative sales content. Accordingly, major retail customers cancelled their contracts with the company, causing it significant cash flow constraints and financial difficulties. BDO is the proposal trustee. Counsel is Keyser Mason Ball for the company.
Composites Innovation Centre Manitoba Inc., a Winnipeg, Manitoba-based not-for-profit engineering firm that provides design, analysis, testing, and fabrication services to the manufacturing industry, filed for bankruptcy on April 14, listing approximately $1.5 million in liabilities. When the company was first formed, it was backed by Boeing Canada and a group of some of Canada's largest agricultural equipment manufacturers. However, the company's efforts to develop the supply chain necessary to make its work sustainable consistently proved unfruitful. Eventually, the company lost a significant amount of its public sector operating and project funding from the provincial and federal governments. Deloitte is the bankruptcy trustee.
Rosebud Creek Financial and 957855 Alberta, two corporate partners of the Metro 360 General Partnership, filed NOIs on April 6, listing over $65.0 million in liabilities, in response to significant financial challenges that Metro 360 began to face many years ago but which have been accelerated in light of recent global developments. Metro 360 is a Canadian marketer of information and entertainment products, including magazines, books, newspapers, and AV media. The COVID-19 outbreak has led to over 350 of Metro 360's retail customers temporarily closing, with many others not accepting deliveries. Book and magazine sales have declined drastically during this period and, as a result, Metro 360's supply and distribution lines have been brought to a complete standstill. In response, the partners implemented an expedited sale of Metro 360's magazine and book wholesale distribution business. The court approved an asset purchase agreement between Metro 360 General Partnership and Great Pacific Enterprises ("Purchaser), in which the Purchaser will acquire all customer and title records, magazine racks at Metro 360 customer locations, and the goodwill of Metro 360 in respect of its Canadian customers. The Purchaser will also make offers of employment to a significant number of Metro 360's employees. KSV is the proposal trustee. Counsel is Goodmans for the company and Bennett Jones for the proposal trustee.
Splend, a Mississauga, Ontario-based company in the business of arranging vehicle leases for on-demand drivers (e.g. Uber drivers), was adjudged bankrupt on April 3, listing approximately $7.2 million in liabilities, including $6.3 million to Element Fleet Management. The company, which currently has in excess of 400 customers, has been negatively impacted by the onset of social distancing requirements and other consequences of the COVID-19 pandemic. Due to the sudden and material decrease in the company's revenues, it is unable to generate sufficient cash flows to service its debts. Deloitte is the bankruptcy trustee. Counsel is Dentons for the bankruptcy trustee and Blakes for Element.