SafetyTek Software Ltd., a Saskatoon, Saskatchewan-based company that provides digital workplace safety management software to manage subcontractors, filed an NOI on May 13, listing approximately $2.2 million in liabilities, including $1 million to Conexus Venture Capital Fund. EY is the proposal trustee. DLA Piper is counsel for the company.
Brant Telephone Inc., a Burlington, Ontario-based telecommunications interconnect company, filed an NOI on December 11, 2020 and a proposal to its creditors on January 6, 2021. The company was founded in the 1980s and grew into an integrator of Unified Communications and Contact Centre solutions concentrating in Avaya premise-based systems. The company lists approximately $2.1 million in liabilities. Albert Gelman is the proposal trustee. Counsel is WeirFoulds for the proposal trustee and Keyser Mason Ball for the company.
Juch-Tech, a Hamilton, Ontario-based company that provides satellite broadcast and internet transmission and uplink services, was placed in receivership on December 9 on application by New Skies Satellites B.V. ("New Skies"), owed approximately $10.4 million (USD) under a Master Services Agreement. A portion of the company's indebtedness is secured by a General Security Agreement. The company has defaulted on various obligations to New Skies, including failing to pay outstanding service fees and engaging in a pattern of improper conduct, such as unauthorized use of New Skies' satellites. Over the past few months, the company has completely ignored numerous demand notices and requests for information made by New Skies. In addition, New Skies has discovered that the company appears to have moved assets that are subject to the General Security Agreement to a property owned by a related company, possibly to frustrate efforts by New Skies to enforce its security interest. KSV was appointed Receiver. Counsel is Osler for the applicant and Norton Rose Fulbright for the Receiver
reDock Inc., an Ottawa, Ontario-based startup that created an AI-powered proposal search engine, filed for bankruptcy on October 23, listing approximately $2.8 million in liabilities. Raymond Chabot is the bankruptcy trustee.
Greenfire Oil and Gas Ltd. and Greenfire Hangingstone Operating Corporation, Calgary, Alberta-based energy technology companies focused on the development of in-situ oil sands projects, filed NOIs on October 8, respectively listing $8.3 million and $17.8 million in liabilities. Starting in the first quarter of 2020, the sole marketer of the bitumen produced at the companies' facility failed to make payment on over 300,000 barrels of bitumen that the companies had produced. This resulted in a severe working capital and liquidity shortage, leading to the termination of all employees in May 2020. In addition, the companies' strategic process has been complicated by the public health emergency caused by COVID-19. Alvarez & Marsal is the proposal trustee. Counsel is Burnet, Duckworth & Palmer for the companies, McMillan for the proposal trustee and Blakes for secured lender, Summit Partners.
Urthecast Corp. (TSX:UR), a Vancouver, British Columbia-based Big Data services company specializing in satellite imaging, data services, and geo-analytics, obtained protection under the CCAA on September 4, listing approximately $151.3 million in liabilities and $126.6 million in assets. The company is well-known for operating two cameras on the Russian segment of the International Space Station. Historically, the company has been able to manage its required ongoing financing by obtaining secured bridge financing from its current group of secured creditors. Lately, however, the company has needed extensive funding to execute on projects still in development. In addition, the company's regular financing requirements have been negatively impacted by the COVID-19 pandemic, which has affected sales, the collection of receivables, and delayed the company in achieving payment milestones in connection with engineering and services contracts. EY was appointed monitor. Bennett Jones is counsel to the company.
Wire IE (Canada) Inc., a Mississauga, Ontario-based company in the business of building and managing data and telecommunications networks for underserved markets, filed an NOI on July 17, listing approximately $55.0 million in liabilities, including $9.7 million to Crown Capital. Currently, the company is overleveraged and cannot support the existing secured and unsecured debt. In an attempt to maintain its business as a going concern, the company has negotiated a Stalking Horse Agreement with a purchase price of approximately $9.5 million. Farber is the proposal trustee. Counsel is Chaitons for the company, Aird & Berlis for the proposal trustee, and Cassels for Crown Capital.
Frontline Broadband, a Toronto, Ontario-based telecommunications company, was placed in receivership on July 6 on application by Neli Financial, owed approximately $5.9 million. The company has three main lines of business: the provision of managed IT solutions to corporate clients; the provision of residential broadband internet and television services to residential customers across Canada delivered under the name Rally; and wholesale services, including television services for bedside terminals in hospitals. The company has suffered significant losses in recent years. In default of its loan agreements, the company brought in two independent consultants to advise on restructuring alternatives and both concluded that the company was overleveraged. The company engaged in forbearance discussions and exchanged proposals for restructuring the company's business, but no agreement could be reached. Farber was appointed receiver. Counsel is Chaitons for the applicant and Weisz Fell Kour for the company.
Peraso Technologies Inc., a Toronto, Ontario-based semiconductor company specializing in the development of integrated circuits and chipsets for the new generation of wireless technology, obtained protection under the CCAA on June 3, listing approximately $6.7 million in liabilities to Roadmap Capital and $1.0 million to Polar Multi-Strategy Master Fund. The company is currently facing significant liquidity issues due to, among other things, multiple legal proceedings brought against it in Canada and the US by its largest customer, Ubiquiti Inc. As a result of these proceedings, the company was unable to sell its products to customers other than Ubiquiti, potential purchasers were deterred from acquiring the company, and the company could not obtain viable financing. The COVID-19 pandemic has further exacerbated the company's efforts to obtain financing or engage in a strategic transaction as the financial markets have become significantly more risk-averse. The company anticipates that it will run out of cash by late June, at which point it will be forced to cease operations. EY was appointed monitor. Canadian counsel is TGF for the monitor, Stikeman Elliott for the company, and Aird & Berlis for Ubiquiti Networks Canada Inc.
Tribalscale Inc., a Toronto, Ontario-based technology company that provides customized enterprise software services to Canadian and American companies, filed an NOI on May 19, listing approximately $5.8 million in liabilities, including $2.5 million to 1924191 Ontario Inc. The company experienced early success when it started its business in 2015. However, it attributes its current financial difficulties primarily to a slowdown in receipt of new contracts in 2019 and a delay in collections from certain existing customers due to disputes, coupled with high operating and payroll expenses. The COVID-19 pandemic further reduced the spending power of the company's existing and prospective customers. Prior to filing the NOI, the company had made certain operational changes as part of a restructuring to address its liquidity challenges., including reducing its employee headcount. In addition, between the summer of 2019 and spring of 2020, the company was in discussions with various potential purchasers which culminated in a potential deal to sell its going concern business. Due to COVID-19, however, the potential purchaser opted not to close the transaction. MNP is the proposal trustee. Counsel is Weisz Fell Kour for the company, BLG for the proposal trustee, and GSNH for 192 Ontario.