Alaska - Alberta Railway Development Corporation ("A2A Rail"), which intended to build a new railway connecting northern Alberta to Alaska, was placed in interim receivership on July 12 on application by PwC, in its capacity as receiver of A2A Rail's main lender Bridging Finance. A2A Rail, along with two related numbered companies and shareholder Sean Frederick McCoshen, had previously filed NOIs on June 18 after PwC issued demands for the repayment of the approximately $212.9 million owed to Bridging. PwC has advised that it will not support any proposal put forward by the debtors and, given its concerns with respect to the improper use of advances under the loan, wants the assets of the debtors to be placed under the care and control of a court officer. MNP was appointed interim receiver of A2A Rail and bankruptcy trustee of the numbered companies, which, along with McCoshen, were deemed bankrupt on July 12. Farber is the trustee of McCoshen's bankrupt estate. Counsel is TGF and McLennan Ross for PwC, Lawson Lundell for MNP and MLT Aikins for Farber.
Alaska - Alberta Railway Development Corporation ("A2A Rail"), 7198362 Manitoba Ltd. and 12703131 Canada Ltd., which intended to build a new railway connecting northern Alberta to Alaska, each filed an NOI on June 18. The move comes after A2A Rail’s main lender, Bridging Finance, was placed in receivership by the Ontario Securities Commission on April 30. Earlier this month, PwC, the court appointed receiver of Bridging Finance, called a $149 million CDN loan made to A2A Rail by Bridging Finance, which spurred the NOI filings. While under creditor protection, the company intends to pursue a court supervised sale or refinancing.These proceedings come less than nine months after Donald Trump granted a presidential permit for the $18 billion (USD) railway project. MNP is the proposal trustee.
Randhawa Group of Companies ("RGC"), which runs a trucking, warehousing, and logistics business, was placed in receivership on June 7 on application by Swinderpal Singh Randhawa, who has been in a dispute with the respondent Rana Partap Singh Randhawa concerning the ownership, operation, and sale of RGC since 2018. KSV Advisory was appointed receiver. Counsel is Stikeman Elliott for the applicant and Cassels for the receiver.
People Express Transport Ltd., a Calgary, Alberta-based trucking and transportation company, was placed in receivership on April 22 on application by RBC, owed approximately $10.7 million. Back in February 2021, RBC had sought the appointment of a receiver over the company's property and assets. However, the application was adjourned in order to allow the parties to negotiate an arrangement under which the company was given time to find refinancing and RBC would have access to additional reporting and transparency into the company's business affairs. During this period, Alvarez & Marsal was appointed as private monitor (the "Monitor") in order to obtain and analyze a variety of information on the company's affairs. However, RBC alleges that the company failed to fully comply with the Monitor's diligence and documentation requests and, although it has had adequate time and opportunity to obtain alternate financing, it has not done so. In addition, RBC expressed its concern that the company was not acting in good faith and was diverting receivables out of RBC's control to accounts that the company holds with other banks. Alvarez & Marsal was appointed receiver. Counsel is McLeod Law for the company, Torys for the receiver and Cassels for the applicant.
Orbit Freight Ltd., a Mississauga, Ontario-based freight transport and warehousing company, was placed in receivership on March 11 on application by TD, owed approximately $1.8 million. Spergel (GRIP) was appointed receiver. Counsel is Harrison Pensa for the applicant and Aird & Berlis for the receiver.
Mr. Manjoo Logistics Ltd., a Hamilton, Ontario-based company, filed for bankruptcy on December 21, 2020, listing approximately $99.6 thousand in liabilities and $26.0 thousand in assets. Schwartz Levitsky Feldman is the bankruptcy trustee.
Kings Cargo Express Ltd. ("Kings Cargo") and Canada Cargo Lines Ltd., Winnipeg, Manitoba-based companies that provide long haul trucking delivery services across the US and Canada, were placed in receivership on October 5 on application by TD, owed approximately $2.2 million. The companies were frequently late on their requisite monthly reporting to TD and Kings Cargo regularly overdrew on its operating loan without providing adequate payments into the account to reduce the line. Due to this lack of transparency in reporting, TD argued that it had no visibility, knowledge, or control over the companies' accounts receivable, which are worth approximately $2.0 million (CAD) and $1.0 million (USD), and that the appointment of a receiver was required to prevent a further devaluation of TD's collateral. Deloitte was appointed receiver. Counsel is Dentons for the applicant, Taylor McCaffrey for the receiver and Hill Sokalski Walsh for the company.
ENTREC, an Acheson, Alberta-based heavy haul transportation and crane solutions provider, obtained production under the CCAA on May 15. Operating from 11 locations across Canada and the US, the company began facing challenges in 2019 due to a number of negative macro-economic factors, including pipeline constraints, discounts in the market price for oil produced in western Canada, rising carbon taxes and increased regulatory requirements. The recent COVID-19 global pandemic, a historic decrease in oil demand and the Russian-OPEC oil price war have also contributed to the company's challenges. Despite efforts to restructure its balance sheet, the company remains in default on its lending facilities. On May 14, Wells Fargo, as agent for the syndicate, issued demands for the approximately CAD $72.3 million and US $12.7 million owing to the syndicate, prompting the company to seek creditor protection. While under creditor protection, the company will explore a Court supervised formal sale and investment solicitation process or plan of arrangement. Alvarez & Marsal was appointed monitor. PwC is financial advisor for the lending syndicate. Canadian counsel is Miller Thomson for the company, Norton Rose Fulbright for the monitor, Bennett Jones for the lending syndicate, Ogilvie for the directors and officers and McLennan Ross for CWB,
One Ocean Expeditions Inc., a Squamish, British Columbia-based polar cruise company that charters small-ship travel to Antarctica, the Arctic, Atlantic Canada and other locations, filed an NOI on April 17, listing approximately $29.5 million in liabilities, including $1.5 million to Swoop Travel and $2.8 million to Export Development Canada. The current global pandemic has disrupted the company's ongoing efforts to restructure and reposition since the Russian government unexpectedly cancelled leases on two of its ships last year. PwC is the proposal trustee.
Air Georgian, Toronto, Ontario-based regional aircraft operator, filed an NOI on January 31. The company operated over 62,000 regional flights per year on behalf of Air Canada through a capacity purchase agreement. This contract, however was not renewed on January 31. While under creditor protection, the company will look to secure a new business relationship. KPMG is the proposal trustee. Counsel is GSNH for the company, Chaitons for proposal trustee and Dentons for the senior secured lender.