1465770 Alberta Ltd. o/a Westlake Husky, a Lloydminster, Alberta-based company that operates a gas station and convenience store, was placed in receivership on March 24 on application by RBC, owed approximately $1.2 million. EY was appointed receiver. Counsel is Dentons for RBC and DLA Piper for the receiver.
GS ER Canada Inc., a Calgary, Alberta-based energy exploration and production company, filed an NOI on March 11, owing approximately $4.3 million in unsecured liabilities to the BC Oil and Gas Commission. The company attributes its financial difficulties to a variety of factors, including: (1) significant reductions in oil and gas prices and commodity demand caused in part by the effects of the COVID-19 pandemic; (2) declining production rates due to a lack of capital investment; and (3) the inability to undertake certain repairs due to lack of funds. Since 2019, the company has attempted to restructure its financial affairs and made several attempts to sell the company. However, these efforts were unsuccessful, as previous potential purchasers failed to close the transaction. MNP, which was appointed proposal trustee, has engaged Sayer Energy Advisors to carry out a proposed SISP for the company's assets. Counsel is Stikeman Elliott for the company and Lawson Lundell for the proposal trustee.
Copetrex Oil & Gas Co. Ltd., a Calgary, Alberta-based oil and gas company, filed for bankruptcy on March 9, listing approximately $319.3 thousand in assets and $54.0 thousand in liabilities, including $38.2 thousand to Canadian Natural Resources. The company attributes its financial difficulties to various factors, including declining revenues and significant contractual liabilities on its properties. KPMG is the bankruptcy trustee.
Gain Energy Ltd., a Calgary, Alberta-based privately-owned company whose assets consist of producing oil and gas properties in Alberta, Saskatchewan, and British Columbia, filed a Division I Proposal (the "Proposal") on March 8. The company sold substantially all of its oil and gas assets and repaid its senior secured debt in September 2020. The Proposal applies to all affected creditors, whether or not any such affected creditor proves a claim against the company under the Proposal. KPMG is the proposal trustee.
Eaglesmed Group Inc. ("Eaglesmed") and Chris Musah Professional Corporation ("CMPC"), which operate a Calgary, Alberta-based health and wellness clinic, were placed in receivership on February 12 on application by BMO, owed approximately $1.1 million by Eaglesmed and $1.4 million by CMPC. Both Eaglesmed and CMPC are in default of their respective loan agreements and guarantees as they incurred excesses in borrowing on operating lines, failed to pay amounts owing to BMO, and failed to provide the required reporting. Deloitte was appointed receiver and manager. Counsel is Dentons for BMO, Cassels for the receiver, and Robertson for the companies.
Calgary Oil & Gas Syndicate Group Ltd., a Calgary, Alberta-based producer of natural gas and natural gas liquids, along with various other related entities (collectively, the "Group"), filed for protection under the CCAA on February 11, 2021, listing approximately $42.89 million in liabilities, including approximately $27 million to Crown Capital Partner Funding, LP. As a junior energy producer, the viability of the Group's business operations is highly dependent upon oil and gas commodity pricing. As such, the Group has been significantly impacted by challenging market conditions in the Canadian oil and gas industry, including the protracted depressed oil and gas pricing, as well as market volatility due to several factors such as the COVID-19 pandemic. BDO was appointed monitor. Counsel is BLG for the Group and MLT Aikins for Crown Capital Partner Funding, LP.
T-Rex Contracting Inc., a Leduc, Alberta-based construction company, along with various other related entities (collectively, the "T-Rex Entities"), were placed in receivership on February 4 on application by BMO, owed approximately $1.29 million. As a result of various events of default under the loan agreements entered into by the T-Rex Entities, BMO demanded repayment of its indebtedness. To date, the T-Rex Entities have refused or neglected to make any payments. Grant Thornton was appointed receiver. Counsel is Dentons for the applicant and Cassels for the receiver.
Tradesmen Enterprises Limited Partnership ("TELP"), a Calgary, Alberta-based limited partnership that provides general mechanical contracting and pipeline construction, assembly, and maintenance throughout Western Canada — along with its general partner, Tradesmen Enterprises Inc. (together with TELP, "Tradesmen") — filed NOIs on February 1. Tradesmen lists approximately $47.7 million in liabilities and $52.5 in assets. Until January 11, 2021, Tradesmen's principal contract was for the construction of a water management project for Teck Coal Limited (the "Project"). The Project was massively over budget, with the final projected cost of completion being more than four times the original budget of $32.0 million. In the course of Tradesmen's work on the Project, Teck Coal Limited also consistently delayed payment, which had a negative impact on Tradesmen's cash flow and its ability to pay subcontractors. Teck Coal Limited, which currently owes Tradesmen approximately $50.0 million, purported to terminate the contract on January 11, 2021. As a result, Trademen's only alternative was to seek court protection by filing the NOIs. KSV Restructuring is the proposal trustee. Counsel is Bennett Jones for the proposal trustee, Lawson Lundell for Tradesmen, and BLG for BMO, the senior lender.
Beaver Lake Resources Corporation, a Calgary, Alberta-based exploration and production company, filed for bankruptcy on January 28, listing approximately $889.8 thousand in liabilities and approximately $nil in realizable assets. Grant Thornton is the bankruptcy trustee.
Metro Paving and Roadbuilding Ltd., a Calgary, Alberta-based supplier of construction services, along with various other related entities (collectively, the "Metro Entities"), were placed in receivership on January 20 on application by BMO, owed approximately $7.2 million. As a result of various events of default under the loan agreements entered into by the Metro Entities, BMO demanded repayment of their indebtedness. To date, the Metro Entities have refused or neglected to make any payments. BDO was appointed receiver. Counsel is Torys for the applicant and Field Law for the Metro Entities.