Cedar Road Bioenergy Inc.

Cedar Road Bioenergy Inc., a Nanaimo, British Columbia-based clean energy company, was placed in receivership on August 4, on application by Vancouver City Savings Credit Union. In 2005, the company entered into a development agreement with the Regional District of Nanaimo pursuant to which the company was permitted to construct and operate a facility to harvest methane gas, convert it to electricity which was ultimately sold to third parties including BC Hydro. The company's business was interrupted by labour shortages and material and equipment servicing delays in early 2020 due to the Covid-19 outbreak. Parts and servicing required for each of the company's two generators are not currently available due to supply chain delays. The company defaulted on its loan to Vancouver City Savings Credit Union and was unable to repay the loan following the expiry of the demand letters. D. Manning & Associates was appointed receiver. Counsel is Owen Bird Law Corporation for Vancouver City Savings Credit Union. By Dina Milivojevic

Speakeasy Cannabis Club Ltd. (CSE:EASY) and its wholly-owned subsidiary 10161233 Canada Ltd.

Speakeasy Cannabis Club Ltd. (CSE:EASY) and its wholly-owned subsidiary 10161233 Canada Ltd., cannabis companies based in Rock Creek, British Columbia, were granted CCAA protection on July 27. The companies are currently in a liquidity crisis. In May 2021, they entered into an exclusive sales agreement with Decibel Cannabis Company Inc. pursuant to which all of the companies’ sales would be made to Decibel for six months, with 25% of the purchase price being paid on delivery and the remaining 75% being paid 90 days later. In August 2021, Decibel experienced financial difficulties, resulting in product having been delivered but 75% of the purchase price remaining unpaid. In addition, the companies' secured lenders, who were expected to convert their secured loans into equity and become shareholders of the companies, instead sought repayments of the secured loans in cash. Crowe MacKay was appointed monitor. Counsel is Clark Wilson for the companies and Dentons for the monitor. By Dina Milivojevic

Speakeasy Cannabis Club Ltd. (CSE:EASY) and its wholly-owned subsidiary 10161233 Canada Ltd.

Speakeasy Cannabis Club Ltd. (CSE:EASY) and its wholly-owned subsidiary 10161233 Canada Ltd., cannabis companies based in Rock Creek, British Columbia, were granted CCAA protection on July 27. The companies are currently in a liquidity crisis. In May 2021, they entered into an exclusive sales agreement with Decibel Cannabis Company Inc. pursuant to which all of the companies’ sales would be made to Decibel for six months, with 25% of the purchase price being paid on delivery and the remaining 75% being paid 90 days later. In August 2021, Decibel experienced financial difficulties, resulting in product having been delivered but 75% of the purchase price remaining unpaid. In addition, the companies' secured lenders, who were expected to convert their secured loans into equity and become shareholders of the companies, instead sought repayments of the secured loans in cash. Crowe MacKay was appointed monitor. Counsel is Clark Wilson for the companies and Dentons for the monitor. By Dina Milivojevic

Voyager Digital Ltd. (TSX:VOYG)

Voyager Digital Ltd. (TSX:VOYG), a publicly-traded cryptocurrency platform, had its Chapter 11 proceedings recognized under the CCAA on July 12. The company is incorporated and has its registered office at a law firm in British Columbia. Its subsidiaries in the US operate a cryptocurrency brokerage and custodial and lending services. The company maintains that the centre of its main interests is in the US. The company's request for a recognition order was unopposed, save and except with respect to the question of whether the Chapter 11 proceedings are foreign main or non-main proceedings. Certain investors and a proposed representative plaintiff in a recently commenced proposed class action in Ontario each advised that they required some additional time to formulate their position and file submissions on the issue, so the Court's determination on this question was adjourned to July 19. A&M was appointed information officer. Counsel is Fasken for the company, Aird & Berlis for certain investors, Siskinds for the proposed representative plaintiff and Blakes for the information officer. By Dina Milivojevic

Premium Comfort Heating & Air Conditioning Ltd

Premium Comfort Heating & Air Conditioning Ltd., a Kelowna, British Columbia-based HVAC company, was placed in receivership on June 15 by National Bank of Canada, owed approximately $2.1 million. In late 2019, National Bank made certain credit facilities available to the company. In 2022, the company defaulted on its working capital ratio and reporting requirements under the credit agreement, and the parties began negotiating a forbearance agreement. However, on June 10, the company advised National Bank that it was shutting down operations effective immediately. The company later advised National Bank that some of the company's employees and suppliers were taking assets off the business premises. While National Bank engaged a bailiff to change the locks and move certain mobile assets to a secure location, because the premises were vacant and assets remained on and around the premises, National Bank was concerned that the property’s value may be impaired due to neglect, looting and vandalism. FTI was appointed receiver. Counsel is Faskens for National Bank and Blakes for the receiver. By Dina Milivojevic

Zenabis Global Inc. & al. (the “Zenabis Group”)

Zenabis Global Inc. & al. (the "Zenabis Group"), a medical and recreational cannabis cultivator which up until recently licensed approximately 1 million square feet of cultivation space in Atholville, New Brunswick, Stellarton, Nova Scotia, and Langley, British Columbia, obtained CCAA protection on June 17. The Zenabis Group was previously a publicly traded company on the TSX. On June 1, 2021, the Zenabis Group was acquired by Hexo Corp., which has been supporting the Zenabis Group's financial losses and providing operational and other support since that time. The Zenabis Group has consistently produced negative cash flows due to a variety of factors, including market pressures caused by the fragmentation of the overall cannabis industry and the resulting downwards pressure on margins and general operational and financial underperformance by the group. These factors were compounded by the financial pressures resulting from the group's obligations to its creditors, including its first ranking secured creditor, 2657408 Ontario Inc. The restructuring plan of the group will involve, among other things, the monetization of the current cannabis inventory of the Zenabis Group and the implementation of a SISP for the Atholville and Stellarton facilities. EY was appointed monitor. Counsel is Norton Rose for the Zenabis Group, Osler for the monitor and McCarthy Tétrault for the senior secured creditor. By Dina Milivojevic

Merritt FuelCo Limited Partnership, Nicola Valley FuelCo Inc., Merritt Operations Services Limited Partnership, Nicola Valley Operations Services Inc., Fort St. James FuelCo Limited Partnership, Prince George FuelCo Inc., Fort St. James Operations Services Limited Partnership and Prince George Operations Services Inc.

Merritt FuelCo Limited Partnership, Nicola Valley FuelCo Inc., Merritt Operations Services Limited Partnership, Nicola Valley Operations Services Inc., Fort St. James FuelCo Limited Partnership, Prince George FuelCo Inc., Fort St. James Operations Services Limited Partnership and Prince George Operations Services Inc., which were incorporated to provide fuel and services to an electricity generation project located in Fort St. James, British Columbia, were each adjudged bankrupt on June 7, on application by Veolia ES Canada Inc., a creditor and related party to the companies, owed approximately $7 million. In recent years, the project ran into significant issues, including: (i) construction delays and defects, which resulted in higher and unplanned expenses; (ii) major forest fires in British Columbia, which disrupted the biomass fuel supply in the area and increased Canadian softwood lumber tariffs; and (iii) the closure of several sawmills within the vicinity of the project site and the unavailability of fuel in the market. Deloitte is the bankruptcy trustee. Counsel is Stikeman Elliott for Veolia ES Canada Inc By Dina Milivojevic

Canadian Dehua International Mines Group Inc.

Canadian Dehua International Mines Group Inc., a British Columbia-based mining company, obtained protection under the CCAA on June 3. The company owns 100% of the shares of two mining projects and a service company, as well as partial ownership interests in several other mining projects. Various factors contributed to the company's CCAA filing, including: (a) delays in achieving commercial production beyond what was originally planned for certain projects, resulting in the assumption of significant debt and limited revenues; (b) two creditors, Zhonghe Canada Zhonghe Investment Ltd. and China Shougang International Trade & Engineer Corporation (“Shougang”), obtaining default judgements against the company in the approximate amounts of $5.2 million and $20.8 million respectively; and (c) the commencement of bankruptcy proceedings by Shougang seeking to obtain a bankruptcy order as against the company. FTI was appointed Monitor. Counsel is DLA Piper for the company. By Dina Milivojevic

Freshlocal Solutions Inc. (TSX:LOCL) (“Freshlocal”) and various related entities (the “Freshlocal Group”)

Freshlocal Solutions Inc. (TSX:LOCL) ("Freshlocal") and various related entities (the "Freshlocal Group"), a group of organic grocery companies, were granted protection under the CCAA on May 16. The Freshlocal Group’s core business consists of: a) an online organic grocery store with 2 physical locations in Vancouver, British Columbia operating as Spud or eGrocery; b) traditional brick and mortar organic grocery stores in Alberta operating as Blush Lane Organic Market; and c) a software tool for businesses with online grocery operations operating as Food-X or the eGMS Platform. As a developer of business-to-business technology, the Freshlocal Group requires continuous access to investor financing, and has historically been able to access capital through the capital markets, convertible debenture private placement offerings, borrowing and various grants. Prior to the CCAA application, the Freshlocal Group raised bridge financing, but the bridge facility was not sufficient to avoid the need to commence formal insolvency proceedings. In addition, the COVID-19 pandemic caused significant challenges, including global supply chain and labour shortages, for the group. EY was appointed monitor. Counsel is Bennett Jones for the Freshlocal Group, BLG for the monitor, and Aird & Berlis for Silicon Valley Bank. Third Eye Capital is the DIP lender. By Dina Milivojevic

Medipure Pharmaceuticals Inc.

Medipure Pharmaceuticals Inc. a Vancouver, British Columbia-based biopharmaceutical company conducting research in prescription pharmaceuticals, and its parent company Medipure Holdings Inc., each filed an NOI on May 11. At the time of the filing, the companies' secured and unsecured creditor, SHP Capital, LLC, had an outstanding bankruptcy application against the companies, which was to be heard on May 13. Deloitte is the proposal trustee. Counsel is Boughton Law for the companies and Bennett Jones for SHP Capital. By Dina Milivojevic