915245 AB Ltd. O/A Prairie Tech Oilfield Service

915245 AB Ltd. O/A Prairie Tech Oilfield Service, an Elk Point, Alberta-based oilfield transportation provider, filed an NOI on February 25. The company lists various liabilities, including various yet unvalued secured claims and dozens of unsecured claims, including approximately $1.26 million to the Cornerstone Co-operative. Deloitte is the proposal trustee. Counsel is DLA Piper for the company. By Dina Milivojevic

Abbey Resources Corp.

Abbey Resources Corp., a Calgary, Alberta-based owner and operator of over 2,000 shallow gas wells in Swift Current, Saskatchewan, was placed in receivership on February 28, on application by various municipalities with taxes owing and the Government of Saskatchewan, as represented by the Minister of Energy and Resources (the “Ministry”). The company was previously granted CCAA protection on August 13, 2021. On December 6, 2021, a risk assessment report was provided to the Ministry raising significant deficiencies with respect to certain wells, and the Ministry issued an order suspending the licences of all high and very high-risk pipelines and requiring the company to cease operations of these pipelines by shutting them in. MNP was appointed receiver. Counsel is DLA Piper for the company, McDougall Gauley for the receiver, Robertson Stromberg for the Minister, Miller Thomson for the Rural Municipality of Lacadena No. 28, Kanuka Thuringer for the Rural Municipality of Miry Creek No. 229 and MLT Aikins for Carry the Kettle Nakoda Nation Band No. 76. By Dina Milivojevic

Signature Mushrooms Ltd. and Alliance Mushrooms Ltd

Signature Mushrooms Ltd. and Alliance Mushrooms Ltd., two related companies that operated a mushroom farm out of Ardrossan, Alberta, filed assignments in bankruptcy on February 9, listing $3.4 million and $1.3 million in liabilities, respectively. BMO is owed $1.3 million. The Bowra Group is the bankruptcy trustee. By Dina Milivojevic

Cura-Can Health Corp. and its wholly-owned subsidiary, The Clinic Network Canada Inc.

Cura-Can Health Corp. and its wholly-owned subsidiary, The Clinic Network Canada Inc., were placed in receivership on February 7 on application by Avonlea-Drewery Holdings Inc., owed approximately $16.4 million. The companies hold investments in medical cannabis clinics operating in Alberta, Saskatchewan, Manitoba, and Ontario, and currently have no active operations. KPMG was appointed receiver. Counsel is Dentons for the companies, Aird & Berlis for the applicant and Cassels for the receiver. By Dina Milivojevic

Vertex Downhole Ltd.

Vertex Downhole Ltd., a Calgary, Alberta-based integrated oil and gas service company, filed an NOI on February 4. The company primarily designs, develops, sells and rents drilling and other downhole tools for use in the oil and gas exploration industry. It has three wholly-owned US subsidiaries and employs 28 individuals in Canada and seven individuals in the US. The COVID-19 pandemic and the resulting global decline in oil and gas prices and exploration activities and disruptions in the supply chain resulted in increased liquidity risk to the company, challenged its ability to enter into customer contracts in a timely manner and negatively impacted the company’s business and operational results. On January 26, HSBC, the company’s largest secured creditor, issued a demand under section 244 of the BIA. As the company was unable to negotiate an agreement with HSBC prior to the expiry of the 10-day notice period, it determined that an NOI filing was necessary to restructure the business. On March 4, the company was granted permission to conduct a SISP. Grant Thornton was initially the proposal trustee, but was replaced by MNP to build consensus between the company and HSBC by giving effect to HSBC’s desire that MNP act as proposal trustee. Counsel is Burnet, Duckworth & Palmer for the company, Faskens for HSBC, Cassels for Grant Thornton, and Dentons for MNP. By Dina Milivojevic

Big Bear Energy Rentals Ltd.

Big Bear Energy Rentals Ltd., a Sylvan Lake, Alberta-based service company operating in the Western Canada oil & gas and civil engineering industries, along with certain other related companies including Barricade Environmental Ltd. with operations in Wyoming, North Dakota and Texas, was placed in interim receivership on January 21 on application by Canadian Western Bank ("CWB"), owed approximately $10.3 million. Business Development Bank of Canada (“BDC”) is also owed approximately $9 million with respect to an equipment loan. Upon its appointment, the interim receiver found what it described as an accounting department plagued with departures and leaves. The company's accounting manager had recently taken a medical stress leave which, according to an email uncovered by the interim receiver, was due to “the directive by upper management of the manipulation of the Big Bear & Barricade financial statements, and the deterioration of respect and leadership with the accounting team …” The interim receiver's initial report further notes that the accounting manager advised that she would typically be instructed by senior management to post unsupported accounts receivable and accounts payable transactions, resulting in higher borrowing values, which allowed the company to draw larger amounts under the CWB facility. She advised that this was also done with the company’s previous banker. According to the interim receiver, it has uncovered $5.9 million in receivables that have been confirmed by accounting personnel to be fictitious, $1.5 million in backdated invoices and $2.3 million in payables which accounting personnel have confirmed to be fictitious and posted to keep the company's profit margin in line with historical financials. Alvarez & Marsal is the interim receiver. Counsel is Miller Thomson for the applicant, BLG for the interim receiver, Cassels for BDC and DLA Piper Canada for Big Bear and related companies. By Dina Milivojevic

Curbie Cars Inc. and 2311382 Alberta Ltd.

Curbie Cars Inc. and 2311382 Alberta Ltd. each filed an assignment in bankruptcy on January 20, 2022, listing collective liabilities of $7.5 million, including $3.2 million to Prairies Economic Development Canada and $2.65 to SaskWorks Venture Fund Inc. The companies operated a start-up online car dealership. After not being able to obtain the required volume to become profitable, the companies decided to wind-up the operations. Grant Thornton is the bankruptcy trustee. Counsel is MLT Aikins for SaskWorks Venture Fund Inc. and Dentons for the bankruptcy trustee. By Dina Milivojevic

Quantum Power Services Inc.

Quantum Power Services Inc., a full service electrical company operating in Edmonton, Alberta, filed an assignment in bankruptcy on December 13, 2021, listing approximately $70,000 in liabilities. The Bowra Group is the bankruptcy trustee.

Kaisen Energy Corp.

Kaisen Energy Corp., a Calgary, Alberta-based upstream oil and gas company, obtained protection under the CCAA on December 8. Due to the impacts of COVID-19 and significant commodity price volatility, Kaisen was obligated to shut-in a significant portion of its operations to reduce costs, and its production dropped significantly before eventually rebounding to approximately 50% production capacity in November 2021. In addition to these operational challenges, Kaisen: (a) suffered material losses in 2018 and 2019 in connection with a hedging plan it then had in place, and (b) has had its credit facilities significantly reduced by its senior secured lender resulting in its available credit decreasing from $5.5M in Q4 2017 down to $1.85M in Q4 2020. EY was appointed monitor. Counsel is MLT Aikins for the company and Norton Rose for the monitor.

1178929 Alberta Ltd.

1178929 Alberta Ltd., an Alberta corporation that previously owned two pieces of land, had a referee appointed under the Alberta Business Corporations Act on November 26. The referee was appointed to determine, among other things, the validity of various shareholder and creditor claims against the company and the distribution of the proceeds of sale from the two pieces of land to the company's creditors. A&M was appointed referee. Counsel is Bennett Jones for the applicants, Gurpreet Lail-Dhaliwal and Jaspreet Lail.