Ingenious Packaging, a Scarborough, Ontario-based company that provides customized label solutions for every market, was placed in receivership on July 24 on application by BMO. The company is currently in default and its financial situation continues to deteriorate; as such, it can no longer afford to operate its business. Since March 2018, the company and its financial advisor, Mesirow Financial, have worked to address the company's significant challenges and implement a transaction to maximize value. The court was satisfied that the company's pre-receivership sale process had already resulted in the highest possible offer for the business and held that there was no need to run a further sales process, approving a sale transaction on the same day as the receivership order. Deloitte was appointed receiver. Counsel is BLG for the applicant and Goodmans for the receiver.
Concept Electric, a Calgary, Alberta-based full service electrical contractor delivering project management and ongoing service and maintenance across Western Canada, was placed in receivership on July 16 on application by HSBC, owed approximately $14.0MM. The company has exhausted all potential sources of funds that may have allowed for its continued operation. As a result of being unable to procure additional funds, the company has advised that it is insolvent and incapable of continuing further business operations. Grant Thornton was appointed receiver. Bishop & McKenzie is counsel to the applicant.
Burry's Shipyard, a Clarenville, Newfoundland and Labrador-based provider of services in machining, fabrication, maintenance and ship repairs, filed an NOI on July 10, listing $4.9MM in liabilities, including $1.7MM to Norcon Marine Services and $1.1MM to BDC. Deloitte is the proposal trustee.
Surface Heat Treat & Coatings, a Hamilton, Ontario-based specialty heat treater and applier of wear resistant coatings to metals for use in the automative, nuclear, oil, mining and agricultural industries, filed an NOI on June 15, listing $1.5MM in liabilities, with majority of that amount owing to BDC. The company's long-term financial pressures have been exacerbated by the serious health problems suffered by the principal, director and sole shareholder of the company, John Abrahamse, over the last three years. Without an effective and consistent management of day-to-day operations, the company's liquidity position deteriorated significantly during this period. The court has approved a stalking horse marketing and sales process for the company's assets. The company has already received a binding offer from Rampart Steel Treat Treating (the "Stalking Horse Purchaser") for substantially all of its assets. The offer from the Stalking Horse Purchaser will stand as a stalking horse offer against which all other offers received during the sale process will be evaluated. A. Farber & Partners is the proposal trustee. Counsel is Torkin Manes for the company, Aird & Berlis for the proposal trustee, Miller Thomson for BDC and Frederikse Law for the Stalking Horse Purchaser.
Syrion Corporation, a Toronto, Ontario-based research and development company, had its property municipally known as 61 Balmoral Avenue,Toronto, Ontario placed in receivership on June 14 on application by Owemanco Mortgage Holding Corporation, owed approximately $2.2MM. In 2017, Ontario Wealth Management Corporation, a related entity to Owemanco, agreed to fund a construction loan to the company for a three-story single-family dwelling. The loan has been in financial default since May 2018, and the company is unable to continue construction on the property or sell the property as is. Rosen Goldberg was appointed receiver. Counsel is GSNH for the applicant and DJD Law and Morganti & Co. for the company.
PE Consulting, a Richmond, British Columbia-based company whose primary asset is land having the civic address 2791 Highview Place West Vancouver, British Columbia, was placed in receivership on June 8 on application by G. Powroznik Group, in its capacity as trustee of the bankrupt estate of Jizhe (Mary) Yang, the sole director and shareholder of PE Consulting. In November 2015, Yang and her husband, Samuel Zhu, were together found liable for over $20.0MM USD for fraud conducted against Zhu's former employer, Prima Technology (details HERE). G. Powroznik Group was appointed receiver. Counsel is Burns Fitzpatrick for the applicant.
Best Option Staffing Solutions (also known as B.O.S.S.), a Brampton, Ontario-based full service staffing agency providing staffing solutions to the transportation, manufacturing and warehousing sectors, filed an NOI on April 27, listing $2.0MM in liabilities. The company had retained the services of a purportedly licensed accountant to do its accounting, including statutory filings with CRA. In the summer of 2017, CRA requested and completed an audit as a result of what appeared to be unusually high Input Tax Credits ("ITCs") reported on the company's HST filings. The audit resulted in an increase in HST payable of approximately $2.0MM for the period of January 2014 to March 2017. It is alleged that the accountant manipulated the sales and ITCs on the HST returns filed with CRA, artificially reducing the company's liability compared to what it was presented. Surplus funds were believed to have been kept by the accountant. BDO is the proposal trustee. Speigel Nichols Fox is counsel to the company.
Gemini Corporation (TSXV: GKX), a Calgary, Alberta-based professional services firm that provides multi-disciplined engineering, field and environmental services for energy and industrial facilities, was placed in receivership on April 19 on application by ATB Financial. FTI Consulting was appointed receiver. Counsel is Burnet, Duckworth & Palmer for the applicant and DLA Piper for the company.
Royer Developments 2015, an Edmonton, Alberta-based company specializing in excavation, site preparation and site remediation, filed an NOI on March 19, listing $3.6MM in liabilities, including $1.4MM to CRA. MNP is the proposal trustee.
Whitemud Mechanical, an Edmonton, Alberta-based mechanical contractor, filed for bankruptcy on March 19, listing $2.1MM in liabilities. MNP is the bankruptcy trustee.