Accede Energy Services, a Lacombe County, Alberta-based integrated energy services company that provides oilfield equipment rentals and fire, safety, and medical aid services, was placed in receivership on March 23 on application by Sandton Credit Solutions Master Fund IV, owed approximately $28.8 million. In late 2016 and early 2017, Sandton took assignments of loans to the company from both ATB and Canadian Western Bank. The company had already defaulted on the loans prior to the assignments to Sandton, and additional defaults followed. As a result, and after a third forbearance agreement expired on February 14, 2020, Sandton issued a demand for repayment. FTI was appointed receiver. Cassels is counsel to the applicant.
Bolt Offsite, a Calgary, Albert-based designer and developer of modular building construction projects, was placed in receivership on March 12 on application by RBC, owed approximately $1.8 million. Since October 2019, RBC has continued to informally forbear from taking any enforcement steps while the company searched for replacement financing, but these efforts have been unsuccessful. KPMG was appointed receiver. Counsel is Osler for the receiver and Torys for RBC.
Direct Oil & Gas Inc., an oil and gas venture with producing properties in northern Alberta, filed for bankruptcy on February 28, listing approximately $16.6 million in liabilities, including $10.0 million to Rothwell Enterprises. Currently, the company's net production revenues are insufficient to cover operating and financing costs. MNP is the bankruptcy trustee. Due to the drastic downturn in oil prices after its appointment, MNP in consultation with Sproule Energy Consultants determined that all of the properties should be shut in. This shut in was completed on March 21. Gowlings is counsel to MNP.
Copperline Excavating, an Edmonton, Alberta-based utility contractor, was placed in receivership on February 21 on application by RBC, owed approximately $2.0 million. The company had filed an NOI on January 31 but subsequently advised RBC that it did not intend to file a proposal to its creditors. EY was appointed receiver. Counsel is Dentons for the applicant and Parlee McLaws for Accord Financial, owed approximately $1.5 million.
Bridge Attainable Housing Society, a Calgary, Alberta-based not-for-profit company, was placed in receivership on February 14 on application by the City of Calgary. By an agreement of purchase and sale ("PSA") with the City, the company agreed to purchase certain lands in Alberta for the purpose of developing an affordable residential housing project. Pursuant to this PSA, the parties agreed to enter into various loan and security agreements in favour of the City. The City alleges that the company did not perform a number of its obligations under these agreements. For example, the company failed to maintain in good standing its status as a not-for-profit organization, and failed to provide the City with audited financial statements for certain years. Given these ongoing issues, the City has lost confidence in the company's ability to oversee the housing project or protect the City's security. Grant Thornton was appointed receiver. Bennett Jones is counsel to the applicant.
Dinosaur Trail Golf & Country Club, a Drumheller, Alberta-based golf club, was placed in receivership on February 11 on application by ATB Financial, owed approximately $1.2 million. Hardie & Kelly was appointed receiver and manager. Dentons is counsel to the applicant.
Tri-Ag Implements, a Wainwright, Alberta-based agriculture equipment supplier, filed an NOI on February 10, listing $15.4 million in liabilities, including $4.7 million to CNH Industrial Capital Canada, $3.7 million to Farm Credit Canada, $2.8 million to De Lage Landen and $2.7 million to Encompass Credit Union. A few days prior to the NOI filing, on February 6, an interim receivership order was granted over the assets subject to FCC's security. FCC provides the company with floor plan financing and became worried when it was discovered that at least five pieces of machinery had recently been sold without the sale proceeds being remitted to FCC. The Bowra Group is the proposal trustee. EY is the interim receiver. Counsel is Reynolds Mirth Richards & Farmer for the company and Sharek Logan & van Leenen for FCC.
Strategic Oil & Gas (TSX-V: SOG), a Calgary Alberta-based junior oil and gas company, along with its wholly owned subsidiary, Strategic Transmission, had its CCAA proceedings transitioned to a court-appointed receivership on January 28. In early January 2020, the company approached the Alberta Energy Regulator ("AER") with its high level plan of compromise and arrangement to exit the CCAA proceedings. The plan called for, among other things, a payment of $5.0 million to the Orphan Well Association ("OWA") in respect of certain assets the company was seeking to have abandoned and a proposed dividend of $0.10 on the dollar for the company's trade creditors, owed an estimated $10.6 million. In mid-January, the AER notified the company that it was not supportive of the proposed plan. In response, the company advised that it had no further options with respect to a restructuring and planned to wind up its operations and transition its assets to the OWA through a court-appointed receivership. KPMG was appointed receiver of the company's Alberta assets. Alvarez & Marsal is the receiver of the company's assets in the Northwest Territories. Counsel is Dentons for the company, Torys for KPMG, Bennett Jones for GMT Capital, a secured debenture holder and Cassels Brock for the Government of the Northwest Territories.
AAA Windows and AAA Holdings, two related Calgary, Alberta-based corporations, were placed in receivership on January 27 on application by Canadian Western Bank ("CWB"), owed approximately $4.7 million. While AAA Holdings effectively operates as a real estate holding company with title to a building located in Calgary (the "Property"), AAA Windows operates from leased space on the Property as a supplier, manufacturer, and installer of windows and doors. The overall downturn in Calgary's economy during the last several years has negatively impacted AAA Windows' business and cash flow. The court granted CWB's application for a pre-pack sale of both companies' assets. Hardie & Kelly was appointed receiver. Counsel is Burnet, Duckworth & Palmer for the applicant and Parlee McLaws for the receiver.
PrimeCARE Health Clinics, Alberta-based healthcare providers with medical clinics in Calgary, Grand Prairie, and Carstairs, were placed in receivership on January 14 on application by ATB Financial, owed approximately $7.4 million. ATB had advanced funds to the companies pursuant to various commitment letters. The companies committed several defaults under these letters, and since May 2019, ATB has been negotiating with them to enter a forbearance agreement. However, the parties were unable to agree to the agreement prior to the clinics ceasing operations, and subsequent events led ATB to conclude that it was not prepared to provide further funding to the companies to continue the operation of their clinics. ATB was advised by the companies that they had removed $2.0 million from the business to be invested in real estate ventures, including a quadplex in Calgary and a failed development in Nigeria. When ATB asked for the details of these transactions to be provided as part of the proposed forbearance agreement, the companies failed to do so. These transactions caused ATB serious concern and were one of the primary causes of the companies' liquidity issues. EY was appointed receiver. MLT Aikins is counsel to the applicant.