Einstein Exchange, a Vancouver, British Columbia-based cryptocurrency exchange with customer deposits equivalent to over $16.3 million, was placed in interim receivership on November 1 on application by the British Columbia Securities Commission. After receiving multiple complaints from members of the public claiming that they could not access their funds from Einstein, as well as complaints about improper use of funds and potential money laundering, the Commission issued an investigation order in May 2019. As part of the investigation, on October 31 the Commission demanded that Einstein, through its counsel, provide information about where its cryptocurrencies are stored. Two hours later, Einstein's counsel notified the Commission that it was no longer representing the company. The next day, the Commission visited Einstein's office and discovered that the elevator was locked for all floors. A phone call to the number listed on the company's website's stated that all its agents were unavailable. An interim receivership order was therefore immediately sought to preserve and protect the cryptocurrency and other assets of or held by the company. Grant Thornton was appointed interim receiver. Lawson Lundell is counsel for the applicant.
DionyMed Brands (CSE: DYME), a Vancouver, British Columbia-based cannabis company, was placed in receivership on October 29 on application by GLAS Americas, owed, together with certain other lenders, approximately $24.8 million. The company generated its revenue primarily in the United States, selling a portfolio of wholly-owned and third-party brands to over 800 retail dispensaries in California, Oregon and Nevada, as well as providing a direct-to-consumer cannabis delivery service. Despite strong growth, the company was unprofitable; in the first 6 months of the year it recorded a negative operating cash flow of $17.2 million on $34.4 million of revenue. Efforts in recent months to raise additional capital were unsuccessful and the company's secured lenders were unwilling to provide additional funds without a court-supervised process geared to obtaining a permanent solution to the company's capital structure and indebtedness. FTI was appointed receiver. Counsel is Dentons for the applicant, Bennett Jones for the receiver, Stikeman Elliott for SP1 Credit Fund and Blakes for an ad hoc group of bondholders.
Venturi Logging, a Merville, British Columbia-based logging company, was placed in receivership on September 25 on application by CWB, owed approximately $603.7 thousand. Grant Thornton is the receiver. Owen Bird is counsel for the applicant.
Yukon Zinc, a Vancouver, British Columbia-based company that owns the Wolverine Mine in the Yukon Territory, was placed in receivership on September 13 on application by the Government of Yukon, which has grown increasingly concerned about the continually deteriorating condition of the mine site, as well as the company's failure to pay approximately $25.0 million in security outstanding since May 2018. On July 31, a day before the hearing of the Government of Yukon's petition to appoint a receiver over the company, the company filed an NOI, though a limited lifting of the stay was subsequently ordered to allow the Government of Yukon to proceed with its application to appoint a receiver. On September 5, a material adverse change was reported by the company's proposal trustee after the company failed to make certain forecast post-filing payments, including $618.0 thousand on account of projected remediation costs. PwC was appointed receiver and will be running a sales process for the company's assets, including the Wolverine Mine. Alvarez & Marsal is the proposal trustee. Counsel TGF for the applicant, Fasken for the company, Dentons for the receiver and BLG for the proposal trustee.
Energold Drilling, a Vancouver, British Columbia-based drilling contractor, obtained protection under the CCAA on September 13. Operating in 25 countries, the company's revenues have been adversely impacted by the deterioration of the markets it serves - in particular, the general downturn in mining that commenced in or around 2012 and the subsequent general downturn in oil and gas that commenced in or around 2014. While conditions in the mining sector have shown some signs of improving in recent years, neither the mining or energy sectors have recovered to their previously robust levels of activity. The company's restructuring plan includes reducing its debt load, cutting costs in its corporate office, selling non-core assets and refocusing attention to its remaining operating units. FTI was appointed monitor. EY was appointed financial advisor to the company. Portage Point Partners was appointed CRO. Counsel is BLG for the company, Cassels Brock for the monitor, Gowling WLG for EDC, Clark Wilson for Extract Advisors LLC as administrative agent to the secured noteholders, McCarthy Tétrault for RBC and Stikeman Elliott for the DIP lender.
Ican Tile Distributors and Ican Contracting, two related Burnaby, British Columbia-based companies that operated as a wholesale tile distributor and contractor specializing in tile, granite and marble installation for multi-residential and commercial projects, were adjudged bankrupt on application by RBC on July 9. The bankruptcy orders were stayed and did not become effective until September 9, 2019, when the stay of proceedings was lifted and KPMG was appointed trustee. Poulsen & Company is counsel for the applicant.
FCV Technologies, a Vancouver, British Columbia-based information and technology company, filed for bankruptcy on September 4, listing approximately $8.9 million in liabilities. Founded in 2005 the company focused on developing smart digital products and information management tools to enable organizations to solve complex business problems and digitally transform their businesses. BDO was appointed bankruptcy trustee.
Yukon Zinc, a Vancouver, British Columbia-based company that owns the Wolverine Mine in the Yukon Territory, filed an NOI on July 31, listing $16.4 million in liabilities. The NOI filing comes a day before the hearing of the Government of Yukon's petition to appoint a receiver over the company. The Government of Yukon has grown increasingly concerned about the continually deteriorating condition of the mine site, as well as the company's failure to pay approximately $25.0 million in security outstanding since May, 2018. Over the company's objections, the court has granted a limited lifting of the stay to allow the Government of Yukon to proceed with its application to appoint a receiver. Alvarez & Marsal is the proposal trustee. PwC is the proposed receiver. Counsel is Fasken for the company, BLG for the proposal trustee and Dentons for the proposed receiver.
Miniso Canada, the Canadian-based retailer of Miniso, a global retail brand ("Miniso Global"), obtained protection under the CCAA on July 11. Launched in 2017, the Canadian company has grown to 67 stores across the country, operating under a license agreement with Miniso Global. A dispute arose in the fall of 2018 over the quantum of debt owed to Miniso Global which led to Miniso Global demanding repayment and filing a bankruptcy application against its Canadian partner. A forbearance agreement was ultimately reached in January 2019 between the parties that required Miniso Canada to, among other things, enter into good faith negotiations for the sale of the Canadian operations to Miniso Global. A transaction never transpired, and when the forbearance agreement expired on June 25, repayment was again demanded. Rather than appointing a receiver, Miniso Global elected to make an application for CCAA protection for the Canadian company so as to maintain enterprise value. Alvarez & Marsal was appointed monitor and has been given enhanced powers to manage the Canadian operations during the proceedings while a restructuring transaction is pursued. Counsel is Fasken for Miniso Global, McMillan for Miniso Canada and Dentons for the monitor.
ILTA Grain, a Surrey, British Columbia-based grain producer, filed for protection under the CCAA on July 7, listing $149.5MM in liabilities. Founded in 2011, the company has become one of the two largest processors of quality grains in Canada, operating from six state-of-the-art facilities in Saskatchewan. As part of its growth strategy, the company has made significant efforts to export its products internationally. Over the past few years, however, the company has faced increasingly challenging international trade conditions as countries such as India, China and Saudi Arabia have decided to limit, and in some cases, entirely discontinue their Canadian imports. The reduction in international sales, coupled with a highly leveraged balance sheet, has left the company without the working capital necessary to fund operations and service its debt. While under creditor protection the company will explore its strategic alternatives, including conducting a sale and investment solicitation process. PwC was appointed monitor. Stikeman Elliott is counsel for the company.