Chisel AI, a Toronto, Ontario-based technology company developing a commercial insurance workflow management platform, filed an assignment in bankruptcy on April 19. The company was seeking investment financing to strategically grow its business and had identified investors and signed a term sheet. However, the lead investor experienced several delays in closing its round. In order to mitigate its risk, the company engaged in conversations with several potential strategic acquirors. After exploring these possibilities and with no confirmation of its ability to close on the financing and no definitive offers for acquisition, Chisel decided to cease operations to conserve cash. MNP is the bankruptcy trustee. Loopstra Nixon is counsel for the bankruptcy trustee. By Dina Milivojevic
Sungard Availability Services (Canada) Ltd. and 11 US-based affiliated companies had their Chapter 11 proceedings recognized under the CCAA on April 13. For approximately 40 years, the companies have established and maintained resilient and recoverable IT environments for myriad businesses, including financial institutions, healthcare, manufacturing, logistics, transportation and general services. Headquartered in Wayne, Pennsylvania, the companies employ approximately 585 employees in the US and Canada. Operational liabilities, including long-term fixed lease costs, have weighed on the companies’ performance and ability to implement its business plan. The companies’ efforts have been further strained by the COVID-19 pandemic, faster than expected declines in demand for legacy products and increased competition for the companies’ more current, cloud-based products. In the weeks leading up to the filing and with the assistance of their advisors, the companies engaged in negotiations with an ad hoc group of term loan lenders over the terms of the restructuring. A&M is the information officer. Counsel is Cassels for the companies, Bennett Jones for A&M as information officer, Norton Rose for certain prepetition lenders; Miller Thomson for PNC Bank; DLA Piper for Landmark Infrastructure Partners; Camelino Galessiere for Orlando Corporation; and Faskens for Digital Toronto Nominee, Inc. By Dina Milivojevic
Effenco Development Inc., a Montréal, Québec-based autotech company, filed an assignment in bankruptcy on April 6, listing assets of approximately $6.6 million and liabilities of approximately $17.5 million, including approximately $3.3 million to Banque de développement du Canada (Québec), approximately $2.4 million to Investissement Québec and approximately $1.1 million to BMO Financial Group. The company's key technology is an electric hybrid Active Stop-Start system that improves energy efficiency on heavy trucks as well as reduce their greenhouse gas emissions by 30%. The company's management attributes its financial difficulties to significant development costs, operational difficulties and insufficient sales, which led to a liquidity problem. Ultimately, management was unable to secure the necessary funding to continue the company's operations. MNP is the bankruptcy trustee. By Dina Milivojevic
Behr Technologies Inc., an Ontario-based technology company, filed an NOI on December 3. The company’s business is focused on a disruptive wireless connectivity software platform that is power-built for massive-scale, industrial and commercial “internet of things” networks. In early 2021, it became clear that projected sales and orders would not be achieved and that the company had no finished commercial product to sell. In addition, the hardware necessary to deliver a complete solution to customers was taking much longer to come on stream due, in part, to the COVID-19 pandemic. The majority of the company’s existing security holders have declined to make further equity investments in the company, leaving it unable to meet its obligations as they come due. Farber is the proposal trustee. Counsel is Aird & Berlis for the company, Miller Thomson for the proposal trustee and Wildeboer Dellelce for 13486826 Canada Inc.
Virtual Power Systems-Canada, Inc., a Toronto, Ontario based technology company, filed an assignment in bankruptcy on October 21, listing approximately $4 million in liabilities, including approximately $3 million owing to its US parent company. The company was the hardware engineering and manufacturing subsidiary of its US parent company, which operates in the digital infrastructure space. The company never generated any revenues and the parent company decided to exit the space. EY is the bankruptcy trustee. Counsel is Stikeman Elliott for the company.
Halo Metrics Inc., a Richmond, British Columbia-based reseller of technology, products, and services for retail security and merchandising operating out of leased premises in Mississauga, Ontario, filed an assignment in bankruptcy on October 8, 2021, listing assets of approximately $1.4 million and liabilities of approximately $2.9 million. The Bowra Group is the bankruptcy trustee.
Bidvine Inc., a Guelph, Ontario-based software development services company that is wholly-owned by a UK company, Bidvine Limited, filed an assignment in bankruptcy on October 6, due to the UK division being placed into administration. Founded in 2014, the company's premise was to make “hiring local, trusted service professionals ridiculously simple”. Liabilities are listed at approximately $100,000. BDO is the bankruptcy trustee.
Telemus Systems Inc., a Kanata, Ontario-based company that specializes in the design, development, and manufacturing of Intelligence, Surveillance and Reconnaissance (ISR) and counter measure systems and suites for operational support in the international market, filed for bankruptcy on August 24, listing approximately $638.6 thousand in liabilities, including $120.9 thousand to CM Computer and $330.1 thousand to various employees. KPMG is the bankruptcy trustee.
Studio Elastique Inc./Elastic Games Inc., a Montreal, Quebec-based game development company, filed for bankruptcy on August 2, listing approximately $1.6 million in liabilities, including $664.8 thousand to RBC and $236 thousand to BDC. Raymond Chabot is the bankruptcy trustee.
Olds Institute for Community & Regional Development and Olds Fibre Ltd. (o/a O-NET), two related Olds, Alberta-based telecommunication companies, were placed in receivership on June 25 on application by the Town of Olds (the "Town"), owed approximately $14 million pursuant to two loans extended by the Town so that the companies could install a high-speed fibre optic cable through the Town. BDO was appointed receiver. Brownlee is counsel to the Town.