Kate Energy Holdings Inc., a Calgary, Alberta-based power producer, was placed in receivership on July 13 on application by Campus Energy Partners LP ("Campus"), owed approximately $10.8 million. In 2019, the company and Campus entered into 1) an LNG Supply Agreement whereby the company agreed to purchase liquified natural gas from Campus, and 2) an equipment lease agreement whereby the company agreed to lease a trailer from Campus. However, the company failed to comply with the express terms of the supply agreement and equipment lease agreement when it did not make payments to Campus when due. Hudson & Company (GRIP) Insolvency Trustees was appointed receiver. Counsel is Torys for Campus and Dentons for the receiver.
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.
International Fitness Holdings Inc., International Fitness Holdings LP, and World Health North LP, which operated 21 fitness clubs and CrossFit studios in Calgary and Edmonton, were deemed bankrupt on July 8. The companies had previously filed NOIs to, among other things, effect the sale of their assets to Ayrfit West Inc. and certain related parties, as purchasers, following a strategic process run by MNP. The sale closed on June 18 and the companies were deemed bankrupt on July 8 after the extension period expired and no proposal was filed. KPMG is the bankruptcy trustee. Counsel is Osler for KPMG and BLG for the purchaser.
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.
Roxdale Gardens Ltd., a Calgary, Alberta-based real estate company, was placed in receivership on June 24 on application by a group of applicants (collectively, the "Preferred Shareholders"), including Cantech Oilfield Equipment Ltd. and King Chi Hung. The Preferred Shareholders invested approximately $3.4 million in the company. These investment funds were collateralized by way of a $10 million mortgage registered against two parcels of land in Leduc County, Alberta (the "Lands"). The Lands were to be the site of a luxury residential real estate development scheme called the "Roxdale Gardens Project". The Preferred Shareholders allege that they have been oppressed through the actions of the company and claim, among other things, that the company's former directors withheld dividend payments owing to the Preferred Shareholders and failed to use the investment funds to develop the Lands. FTI was appointed receiver. Fasken is counsel to the Preferred Shareholders.
1436126 Alberta Ltd. o/a Morinville Plaza & Suites, which owns a mixed-use commercial and residential building located in Morinville, Alberta, was placed in receivership on June 22 on application by Peace Hills Trust Company ("Peace Hills"), owed approximately $1.4 million pursuant to a term loan extended by Peace Hills to the company. The Bowra Group was appointed receiver. Parlee McLaws is counsel to Peace Hills.
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.
Solis Foods Corporation Inc. ("Solis"), Vivian Group Inc. ("Vivian Group") and 1610830 Alberta Ltd. ("161Co"), three related companies, filed an NOI on June 8, listing approximately $19.0 million in secured debt and $5.1 million in unsecured trade debt. Together, the companies facilitate a business enterprise in which Solis manufactures and packages snack foods for the food service and retail grocery industries, including producing national branded and private-label snack foods. Vivian Group is a holding company responsible for real estate and 161Co is a holding company solely responsible for certain Alberta real estate (and equipment) that was the home of a now-closed production facility. After Solis ran into liquidity issues in 2018, David Andrew Vivian ("Andrew") sold 50% of his interest in Vivian Group to Super Pufft Snacks Corp. ("Snacks"). In addition to providing working capital to the companies, Snacks would provide production expertise to help improve Solis' profitability. However, profitability did not improve in 2019 as certain key customers were lost and Solis reported $1.2 million in losses. With the onset of COVID-19 related shutdowns in 2020, the companies' financial situation further deteriorated as many restaurants and food services business closed. In light of the financial challenges facing the business, Snacks determined it is no longer prepared to fund the companies' working capital needs. Sun Pac Holdings Ltd. will be providing interim financing during these proceedings. EY is the proposal trustee. Counsel is Loopstra Nixon for the companies, DLA Piper for the proposal trustee, Aird & Berlis for Sun Pac Holdings Ltd. and Snacks, and GSNH and Hager Law for Andrew.
Queen Mary Park Place Ltd., which owned and operated a commercial strip mall located in central Edmonton, Alberta, was placed in receivership on May 26 on application by CMLS Financial Ltd., owed approximately $2.9 million. The Bowra Group Inc. was appointed receiver. BLG is counsel to the applicant.
P7 Construction Ltd. ("P7 Construction") and 1619904 Alberta Ltd. ("161 Alberta") were placed in receivership on May 21 on application by BDC, owed approximately $7.0 million. In February 2015, BDC approved a loan to P7 Construction in connection with its development of a Holiday Inn Express & Suites in Bonnyville, Alberta. 161 Alberta, which operates the hotel, guaranteed payment of the loan. P7 Construction has been in default of the loan since March 24, 2020, and in November 2020, BDC and its counsel demanded payment. BDO was appointed receiver. McLennan Ross is counsel to the applicant.