North American Steel Erectors Inc.

North American Steel Erectors Inc., a Cochrane, Alberta-based company that provides steel erector contracting and other services to large construction projects, was placed in bankruptcy on July 29 on application by BNS, owed approximately $1.8 million. The company also owes $2.4 million to Roynat Inc. and $1.2 million to the CRA. At the time of the bankruptcy, the company had three open contracts - one in Alberta and two in Ontario. It attributes its financial difficulties to a project for the supply of steel on a 9th Avenue bridge project in Calgary which is currently the subject of litigation. MNP is the bankruptcy trustee and has determined that there is no economic benefit to complete any of the three open contracts. Counsel is McMillan for BNS, Ramsay Legal Counsel for the company, Thompson Dorman Sweatman for Exact Detailing Ltd and Caron & Partners for the bankruptcy trustee.

Kate Energy Holdings Inc.

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”)

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.

International Fitness Holdings Inc., International Fitness Holdings LP, and World Health North LP

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)

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.

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

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.

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.

Natural Health Services Ltd.

Natural Health Services Ltd., which operated medical clinics that specialized in dispensing cannabinoids across Alberta, Saskatchewan, Manitoba, and Ontario, filed for bankruptcy on August 6. KPMG is the bankruptcy trustee. Counsel is Dentons for the company and Torys for the trustee.