Enjoy Technology Canada Ltd.

Enjoy Technology Canada Ltd., a Vaughan, Ontario-based company engaged in the business of providing same-day delivery and set-up of mobile devices through a strategic partnership with Rogers Communications, made an assignment in bankruptcy on July 8, listing approximately $2 million in liabilities, including approximately $660,000 to Rogers. The company is a wholly-owned subsidiary of Enjoy Technology, Inc. ("Enjoy US"), a US technology-powered platform listed on the NASDAQ stock exchange under the ticker symbol “ENJY", which obtained Chapter 11 protection on June 30. Enjoy struggled to achieve profitability both in Canada and the US due to staffing shortages, supply chain issues and difficulty in securing additional liquidity after Enjoy US went public via a special purpose acquisition vehicle in 2021. Deloitte is the bankruptcy trustee. Counsel is Osler for the company and Aird & Berlis for the bankruptcy trustee. By Dina Milivojevic

LSI Logistix Canada Inc. and certain related entities

LSI Logistix Canada Inc. and certain related entities, which operated a trucking and logistics company based in Ontario that serviced customers across Canada and the northeastern US, were placed in receivership on June 20, on application by HSBC Bank Canada, owed approximately $2 million. In August 2021, the parties entered into a forbearance agreement which was subsequently extended on a number of occasions and ultimately expired on April 29, 2022. During the forbearance period, the companies engaged in a process of winding down their business operations in an orderly fashion, including through the sale of significant assets, and utilized certain of the proceeds to repay a portion of the debt to the Bank. The companies had advised the Bank that the wind-down would culminate with bankruptcies of each of the companies, but the bankruptcies were never carried out. BDO was appointed receiver. Counsel is TGF for the Bank. By Dina Milivojevic

Alaska – Alberta Railway Development Corporation (“A2A Rail”)

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 (Editor's note: last week we mistakenly wrote that A2A Rail was also deemed bankrupt - it was not, but rather had its proposal proceedings extended). 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.

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.

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”),

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.

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.

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.

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.

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.