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.
Divestco (TSX:DVT), a Calgary, Alberta-based energy geoscience services company that provides a comprehensive and integrated portfolio of data software and services to the oil and gas industry, filed for protection under the CCAA on March 4, listing approximately $20.9MM in liabilities. The company has been significantly impacted by the ongoing financial downturn affecting the oil and gas industry in Canada. This decrease in revenue, coupled with legacy administrative overheads, has placed significant stress on the company's cash flow. As a result, the company has needed to raise significant amounts of capital to fund the business losses, placing the company at a competitive disadvantage. The holders of secured loans that had been funding the company to continue its operations are no longer willing to provide further funding without a restructuring. Through these CCAA proceedings, the company expects to secure commitments for up to an aggregate amount of $1.5MM in DIP financing from certain of its directors, officers and existing shareholders. Grant Thornton was appointed monitor. Field Law is counsel to the company.
Pro Glass Services, a Mississauga, Ontario-based window and glass repair company, filed for bankruptcy on February 7, listing $953.2MM in liabilities, including $417.0M to CRA. msi Spergel is the bankruptcy trustee.
Sandpaul Investments, a Thunder Bay, Ontario-based property management company, was placed in receivership on January 21 on application by RBC. BDO was appointed receiver. Dentons is counsel to the applicant.