Zargon Oil & Gas Ltd. (TSX:ZAR), a Calgary, Alberta-based oil and gas producer, filed an NOI on September 8, listing approximately $9.2 million in liabilities. Currently, the company is actively engaged in discussions with an arm’s length third party in connection with the company's potential restructuring. These discussions are focused on obtaining the additional financing necessary to provide the company with increased liquidity and its creditors with a better outcome than the alternatives currently available. MNP is the proposal trustee. Counsel is Burnet, Duckworth & Palmer for the company and McMillan for the proposal trustee.
Swizzlesticks Enterprises Inc., a Calgary, Alberta-based salon and spa, filed for bankruptcy on August 25, listing approximately $1.3 million in liabilities. PwC is the bankruptcy trustee.
Raptor Rig Ltd., a Calgary, Alberta-based drilling company specializing in the creation of automated drilling and coil tubing rigs, was placed in receivership on August 10 on application by Halliburton Global Affiliates Holdings, owed approximately $35.5 million. FTI Consulting was appointed receiver. Norton Rose Fulbright is counsel to the applicant.
Black Knight Inn, a Red Deer, Alberta-based hotel, lounge, and restaurant, was placed in receivership on August 7 on application by Servus Credit Union. MNP was appointed receiver. Miller Thomson is counsel to the applicant.
Crowfoot Land & Livestock Corporation, a Brooks, Alberta-based agricultural company in the business of growing crops and raising livestock, along with James Clark and Robin Clark (collectively, the "Defendants"), were placed in receivership on July 22 on application by RBC, owed approximately $2.6 million from the company and $2.4 million from James Clark and Robin Clark. The Defendants defaulted on their loan agreements and forbearance agreement with RBC after, amongst other things, failing to make numerous monthly payments under several credit facilities and failing to provide evidence of satisfactory financing from a third-party lender. These defaults, in addition to James Clark's allegedly fraudulent actions and matrimonial conflict between James Clark and Robin Clark, have led RBC to lose complete faith that the Defendants can repay the indebtedness owing by the company. In May and June, RBC was forced to seize certain of the company's assets in order to protect its security. MNP was appointed receiver. Counsel is Dentons for the applicant, MacLean Wiedemann Lawyers for James Clark, Stringam for Robin Clark, and Burnet, Duckworth & Palmer for the receiver.
Ostrander Hotels, which operate as HomeStay Inn & Suites and HomeStay Inn Express in Medicine Hat, Alberta, were placed in receivership on July 22 on application by Innovation Credit Union, respectively owed approximately $7.1 million and $5.2 million. Deloitte was appointed receiver. Counsel is Dentons for the applicant and Duckworth & Palmer for the company.
Cabot Energy Inc., a Calgary, Alberta-based company in the oil and gas field services industry, filed an NOI on June 30, listing approximately $47.7 million in liabilities. Grant Thornton is the proposal trustee.
Prostar Manufacturing, an Okotoks, Alberta-based manufacturer of automated well servicing equipment for the oil and gas industry, filed for bankruptcy on June 30, listing $94.6 million in liabilities, including $43.0 million to ATB Financial. The company began to experience financial difficulties as a result of the downturn in oil and natural gas pricing and its financial difficulties were exacerbated by the recent COVID-19 pandemic. Grant Thornton is the bankruptcy trustee.
Northern Silica Corporation, a Calgary, Alberta-based company operating an integrated silica mining and transport business, along with several related companies (collectively, the "NSC Companies"), obtained protection under the CCAA on June 30 on application by QMetco Limited and Taurus Resources No. 2. B.V. As of March, the companies have approximately $89.8 million in liabilities and $66.0 million in assets. The NSC Companies' silica mining takes place at mining facilities near BC ("Moberly Plant"), which can produce frac sand, and transport takes place at a facility in Alberta ("Penhold Facility"). Since early 2019, frac sand prices and demand have decreased. In addition to these market-wide issues, because the operations at the Moberly Plant have been uneconomic at this time, operations were shut down in late February. During the CCAA proceedings, the companies will be implementing a court-supervised sale and investment solicitation process. Vitreo Minerals Ltd. will be providing up to $3.0 million in DIP financing. Alvarez & Marsal was appointed monitor. Counsel is McMillan for the company, Cassels for the applicants, and Torys for the monitor.
Korite International, a Calgary, Alberta-based company that is one of the world's largest commercial producers of ammolite, an opal-like organic gemstone, obtained production under the CCAA on June 30. Two significant events over the last year have led to the company's current financial struggles: unrest in Hong Kong and more recently, the COVID-19 pandemic. A significant amount of sales are generated through trade shows in Hong Kong; however, these have been cancelled since last August due to violent protests and airport closures. The pandemic has resulted in a shut down of retail stores, the cruise industry, tourism and travel markets. In addition, due to their own financial constraints arising from the pandemic, major cruise lines and retailers have stopped paying their suppliers, which are Korite's wholesale customers. In light of the economic impact of the aforementioned factors and the uncertainty as to when circumstances may improve, the company determined that it could not sustain itself and must pursue restructuring alternatives. BDO was appointed monitor. Counsel is Bennett Jones for the company and Burnet, Duckworth & Palmer for the monitor.