Elcano Exploration Inc., Elcano Exploration Ltd. & Elcano Energy Partnership, Calgary, Alberta-based oil and gas companies, were placed in receivership on November 24, on application by Tallinn Capital Energy Corp., owed over $6 million. It appears that Tallinn intends to make a credit bid for the companies' Manitoba assets in the receivership proceedings. The companies did not oppose the receivership application, but sought approval of an order permitting the receiver to execute an RVO term sheet and market an RVO transaction being proposed by the companies, which would be funded by their outside investor. The receivership order granted does not appear to address the relief sought by the companies, and no endorsement appears to have been released at this point. Grant Thornton was appointed receiver. Counsel is Bennett Jones for the companies.
CUDA Energy Inc., CUDA Oil and Gas Inc., CUDA Energy LLC and Junex Inc. (collectively, "CUDA"), a Calgary, Alberta-based group of oil and gas companies with assets in Alberta and the State of Wyoming, had a receiver appointed on November 18, on application by PwC as receiver of Bridging Finance Inc. ("Bridging"), owed approximately $57 million. Bridging has been providing financing to CUDA since 2018. CUDA has engaged in several formal refinancing processes and asset sale processes since 2019 in an attempt to fund working capital requirements related to its US assets or to refinance the loan agreement. On July 9, the operator of the US assets issued a default letter and filed a lien against CUDA in the amount of approximately US $2 million for a failure to pay unit expenses under the operating agreement. This constitutes an event of default under the loan agreement with Bridging. As a result of the foregoing and various other issues outlined in Bridging's materials, Bridging and PwC as receiver of Bridging had serious concerns about the ability of management to continue the operations of CUDA and develop a plan for the repayment of the outstanding indebtedness. Chapter 15 proceedings will also be commenced in the State of Wyoming. FTI was appointed receiver. Counsel is DLA Piper for PwC as receiver of Bridging Finance Inc.; Blakes for Tallinn Capital Energy Limited Partnership, by its general partner, Tallinn Capital Energy Corp. (a subordinate secured creditor); and Bennett Jones for FTI in it capacity as receiver of CUDA.
Jam Hospitality Inc. and XS Lounge and Grill Ltd., operating as the Radisson Hotel and Conference Centre at the Calgary Airport, were placed in receivership on November 18, on application by ATB Financial, owed approximately $17 million. PwC was appointed receiver. Counsel is Norton Rose for ATB Financial.
Wolf Custom Homes Ltd., a Calgary, Alberta-based manufacturer of custom homes, filed an assignment in bankruptcy on November 10, listing approximately $4.6 million in liabilities. Grant Thornton is the bankruptcy trustee.
Eco-Industrial Business Park Inc., Absolute Energy Resources Inc., Absolute Environmental Waste Management Inc., Lot 11 GP Ltd. and Lot 11 Limited Partnership (collectively, the "Absolute Entities"), which own certain lands in Edmonton, Alberta, had a receiver appointed on November 4 on application by Romspen Mortgage Limited Partnership and Romspen Investment Corporation. Each of the Absolute Entities guaranteed a loan given by Romspen to 3443 Zen Garden Limited Partnership ("Zen Garden") in 2018. The security includes mortgages over certain lands in Edmonton. Zen Garden defaulted on the loan in Texas and was petitioned into involuntary bankruptcy. An order has been made in the US bankruptcy proceedings allowing Romspen's claim in the amount of approximately USD $96.7 million. MNP was appointed as interim monitor in 2020. However, since then, the Absolute Entities have incurred property tax obligations that have resulted in the City of Edmonton issuing Notifications of Public Auction for the Edmonton lands, with the auction set to take place on November 25, 2021. MNP was appointed receiver. Counsel is BLG for Romspen and Dentons for the Absolute Entities.
Western Oilfield Equipment Rentals Ltd., an industrial vacuum equipment supplier in Leduc, Alberta, was placed in receivership on November 3 on application by HSBC. The company committed various defaults under the facility letter with HSBC, and the forbearance period granted by HSBC has now expired. The company intends to wind down its business and consented to the receivership. EY was appointed receiver. Counsel is Faskens for HSBC.
The Bridal House, an Edmonton, Alberta-based bridal boutique, filed an assignment in bankruptcy on September 10. In a message on its website, the company, which had served Edmonton area brides for 27 years, cited the onset of the COVID-19 pandemic, the shutdown of non-essential businesses and limited retail capacity as the reasons for its filing. Faber is the bankruptcy trustee.
732482 Alberta Ltd., the owner of a 61-room limited service hotel located in Lloydminster, Alberta, had a receiver appointed on September 3 on application by ATB Financial, owed approximately $5.2 million. The company, with the assistance of CBRE Limited, ran a pre-filing sales process which resulted in a potential transaction with 2377142 Alberta Ltd. The sale was approved by the Court on October 15. BDO was appointed receiver. Counsel is Burnet, Duckworth & Palmer for ATB Financial and Dentons for the receiver.
2127712 Alberta Ltd., a Cochrane, Alberta-based company, was placed in receivership on August 20 on application by Roynat Inc., owed approximately $2.4 million pursuant to a loan agreement wherein Roynat Inc. agreed to loan $2.6 million to the company for, among other things, the purchase of 590 Griffin Road East, Cochrane, Alberta. The company committed various events of default under the loan agreement. In June, Roynat Inc. made demand of the company for immediate payment in full of the indebtedness, which currently remains unpaid. MNP was appointed receiver. McMillan is counsel to Roynat Inc.
Cococo Chocolatiers Inc., a Calgary, Alberta-based manufacturer and retailer of artisanal chocolates, was placed in receivership on August 18 on application by Panterra Mortgage & Financial Corporation ("Panterra"), owed approximately $10.7 million. Despite Panterra's demand for repayment, the company has not paid and continues to fail to pay its indebtedness. The court also approved a sales process for the company's assets and approved Panterra's credit bid, which will serve as a stalking horse bid in the sales process. Deloitte was appointed receiver. Counsel is Dentons for Panterra and Torys for the receiver.