Alcan Fluid Disposal Ltd., a Prince George, British Columbia-based oil and gas company which operated two wells for the purpose of wastewater disposal, filed an assignment in bankruptcy on September 27, listing over $2 million in debts, including approximately $130,000 for estimated reclamation costs. The company has not been an operating entity for approximately 10 years before the filing. MNP is the bankruptcy trustee.
Premium Liquid Labs Inc., a Burnaby, British Columbia-based manufacturer of electronic cigarette liquids under the Premium Labs was placed into bankruptcy on September 17, on application by EsmokerCanada Inc., owed approximately $2.6 million. BDO is the bankruptcy trustee. Harper Grey is counsel for the applicant.
Plus Products Inc., a Vancouver, British Columbia-based parent company of a branded cannabis-infused edible manufacturing enterprise (the "Plus Group"), obtained CCAA protection on September 13. The company itself has limited assets and operations, but is the Plus Group's primary vehicle for raising debt and equity in the capital markets. It is a reporting issuer in British Columbia, Alberta and Ontario, and is listed on the Canadian Securities Exchange under the symbol "PLUS" and the OTC Market Group in the US under the symbol "PLPFT". The operating subsidiaries hold licences that permit them to manufacture, distribute and sell the Plus Group's products in California and Nevada. The Plus Group has significant funds on hand - likely sufficient to continue operating in the ordinary course until about February 2022. However, there is currently no expectation that the Plus Group will be able to generate sufficient revenue or raise additional funds to make the interest payments due under certain unsecured convertible debentures or to continue to meet its liabilities beyond that date. PwC was appointed monitor. Counsel is Blakes for the monitor and Fasken for the company.
Skyline 2 Productions Inc., an Ontario and BC-based film production company that produced the series "Ed Quinn Vs.", was placed in interim receivership on August 17 on application by The Forest Road Company ("FRC"), owed aaproximately $1.4 million (USD) pursuant to a loan which is secured by both a GSA and the assignment of certain tax credits. FRC had agreed to advance the loan on the basis that the company was entitled to and would receive tax credits from the British Columbia Production Services Tax Credit and Canadian Federal Production Services Tax Credit. In accordance with the terms of the loan, the company assigned the tax credits and their proceeds to FRC. The loan has now come due and the company has failed to repay the loan. Furthermore, despite the fact that the tax credits and their proceeds were assigned to FRC, the company has failed to provide any information regarding the status of the tax credit proceeds to FRC. As a result of the company's various breaches and defaults under the terms of the loan and the lack of cooperation from its management, FRC has lost trust and confidence in the company. MNP was appointed interim receiver. Miller Thomson is counsel to the applicant.
Solo GI Nutrition Inc., a Kelowna, BC-based producer of low glycemic energy bars and snacks, filed for bankruptcy on July 13, listing approximately $44.3 thousand in assets and $1.8 million in liabilities, including $541 thousand to RBC and $261.9 thousand to Economic Trust Southern Interior ("ETSI"). The company incurred net operating losses for the years ending June 2019 and June 2020. During the COVID-19 pandemic, the company's manufacturer ceased operating, which further exacerbated the company's existing financial problems. In February, RBC and ETSI each issued demand letters to the company. MNP is the bankruptcy trustee.
0751380 B.C. Ltd. dba Sunshine Contracting, a Terrace, BC-based construction company, was placed in receivership on June 22 on application by TD, owed approximately $185 thousand. The company lists $168.1 thousand in assets. BDO was appointed receiver. Harper Grey is counsel to the applicant.
Fireweed Brewing Corp., a Kelowna, British Columbia-based privately-owned craft brewer with brands such as Tree Brewing, Dukes Cider, and Shaftebury, filed for bankruptcy on April 14, listing approximately $6.4 million in liabilities, including $3.4 million to Raw Energy Ltd. and $1.9 million to BMO. Deloitte is the bankruptcy trustee.
EncoreFX Inc., a Victoria, British Columbia-based financial services company providing foreign exchange risk management services and cross-border payment solutions, had its bankruptcy proceedings continued under the CCAA on March 30, 2021. Exactly one year earlier, on March 30, 2020, the company voluntarily assigned itself into bankruptcy as a result of atypical volatile foreign exchange market conditions driven mainly by the impact of the COVID-19 pandemic. Due to the extreme market volatility, several of the company's clients were OTM on their transactions. Under the terms of the company's standard ISDA agreements with its third-party banking counterparties (the "Liquidity Providers"), the company was required to pay significant additional margin to the Liquidity Providers to cover the value of the OTM contracts. The Plan of Compromise and Arrangement (the "Plan") entered into under the CCAA seeks to avoid the depletion of the company's assets resulting from extensive and uncertain litigation. The Plan aims to achieve this by providing a global resolution of certain claims against the company. The stakeholders with the largest claims filed against the company include Gustavson Capital Corporation, which filed a secured claim against the estate in the amount of $35.9 million, and Andreas Wrede, who filed a property claim for approximately $29.0 million. EY was appointed monitor. Counsel is MLT Aikins for the monitor, Jones Emery Hargreaves Swan for Gustavson Capital Corporation and Stikeman Elliott for Andreas Wrede.
Mamatas Real Estate Holdings Unlimited Liability Company, a Vancouver, British Columbia-based company that owns property at 3920 North Talbot Road and 5175 Ure Street, Tecumseh, Ontario (collectively, the "Real Property"), was placed in receivership on March 11 on application by BDC, owed approximately $4.8 million. Toolplas Systems Inc. ("TSI"), an affiliated company, operates from the Real Property pursuant to a lease with the company. In February, TD - a secured creditor of TSI - demanded repayment of certain indebtedness owing by TSI. In March, BDC issued a demand for payment from the company of its indebtedness. Fuller Landau was appointed receiver. Counsel is Chaitons for the applicant, Dickinson Wright for the company, and Miller Thomson for TD.
Ardenton Capital Corporation ("ACC"), a multinational private equity corporation that acquires stakes in mid-market private businesses — along with Ardenton Capital Bridging Inc., its wholly-owned subsidiary — filed for protection under the CCAA on March 5, listing approximately $354.6 million in collective liabilities. ACC attributes its financial difficulties to two major factors. First, the portfolio companies in which ACC has indirect majority ownership interests are not generating sufficient cash flow for ACC to meet all of its corporate overhead costs, pay interest on its debt, and acquire additional businesses. Second, there have been significant disruptions in the capital raising markets because of the COVID-19 pandemic. In April 2020, ACC began deferring payments on its preferred and hybrid security products in order to conserve cash at the portfolio company level. However, the deepening impact of the pandemic has derailed the companies' attempts to catch up on these deferred payments to its investors and lenders. Since September 2020, ACC has not made any payments to its debtholders. To reduce costs thus far, in addition to office closures, ACC has implemented significant cost reduction measures, including layoffs and reductions in payroll. During the course of these CCAA proceedings, the companies intend to pursue third-party interim financing and return to Court to seek approval of such financing. KSV Advisory was appointed monitor. Counsel is MLT Aikins and Aird & Berlis for the companies and DLA Piper for the monitor.