Blutip Power Technologies, a Mississauga, Ontario-based technology company that provided fuel management solutions for operators of high-horsepower diesel engines, filed for bankruptcy on May 30. Richter is the bankruptcy trustee.
Wavefront Innovation Society, a Vancouver, British Columbia-based startup accelerator focused on mobile and IoT (Internet of Things) innovation, filed for bankruptcy on May 14, listing $2.1MM in liabilities, including $958.5M to the National Research Council of Canada and its Centres of Excellence for Commercialization and Research. While the company once presented itself as a key player in facilitating the creation of technological "smart cities", declining sources of revenue have contributed to its financial downturn. Grant Thornton is the bankruptcy trustee.
Control Mobile, a Vancouver, British Columbia-based technology company, was placed in receivership on April 12 on application by the McDonnell Group, owed approximately $508.6M. Founded in 2014 and backed by Vanedge Capital and BDC Capital, the company provides an analytics platform for online businesses to manage and analyze their online transaction data and quickly grew to over 25.0M customers. Despite its growth, the company recently ran into cash flow difficulties. In January 2018, the company accepted a secured promissory note from the McDonnell Group, but defaulted on the note soon after. Crowe MacKay was appointed receiver. Counsel is Fasken for the applicant and Farris for the company.
BuildDirect, a Vancouver, British Columbia-based technology company that has built and operates an online market platform for home improvement products in Canada and the U.S., filed for protection under the CCAA on October 31. Although the company's operations consistently generated significant revenue, it failed to achieve profitability and currently owes its lenders approximately $75.0MM. The immediate cause of the company's financial difficulties, however, was its failure to complete an equity financing in mid-October. During the proceedings, the company will receive $15.0MM in DIP financing from its interim lenders while it pursues a potential sale. The company's cash flow forecast shows that the company expects to use up to $8.5MM in cash in the next five weeks. PwC was appointed monitor. Alvarez & Marsal is financial advisor to the interim lenders. Counsel is Fasken Martineau for the company and BLG for the monitor.