British Columbia

CanWest Aerospace Inc. and Can West Global Airparts Inc. (collectively, “CWA”)

CanWest Aerospace Inc. and Can West Global Airparts Inc. (collectively, "CWA"), British Columbia-based businesses that provide specialized aircraft, helicopter and avionic services locally and internationally, obtained CCAA protection on March 8. Prior to the COVID-19 pandemic, CWA's business was very profitable. Unfortunately, due largely to travel restrictions and supply chain delays arising from the pandemic, CWA has been unable to generate sufficient funds and is in default of its loan with RBC, its primary secured lender. RBC issued a demand letter and notice of intention to enforce security dated January 17, 2023, and subsequently filed a receivership application. RBC also opposed the CCAA application, which was ultimately successful. FTI was appointed Monitor. Clark Wilson is counsel for CWA, Dentons is counsel for RBC and Kornfeld is counsel for BDC. By Dina Milivojevic

IE CA 3 Holdings Limited and IE CA 4 Holdings Limited

IE CA 3 Holdings Limited and IE CA 4 Holdings Limited, British Columbia-based subsidiaries of Iris Energy Limited which collectively operate cryptocurrency mining operations, were placed in receivership on February 3, on application by NYDIG ABL LLC. NYDIG financed the approximately 37,800 mining servers used by the companies. The companies are in default of the financing agreements with NYDIG, including payment defaults in the amounts of approximately $8.3 million and $11.7 million respectively. The companies are collectively indebted to NYDIG in the amount of approximately $114 million. Based on the financial statements of the companies, the prevailing market price of bitcoin, and public statements made by Iris Energy, the companies do not have the ability to repay NYDIG. PwC was appointed as Receiver. Blakes is counsel for NYDIG, Norton Rose Fulbright is counsel of the companies and Osler is counsel for the Receiver. By Dina Milivojevic

Nordstrom Canada Retail, Inc., Nordstrom Canada Holdings, LLC, and Nordstrom Canada Holdings II, LLC (collectively, “Nordstrom Canada”)

Nordstrom Canada Retail, Inc., Nordstrom Canada Holdings, LLC, and Nordstrom Canada Holdings II, LLC (collectively, "Nordstrom Canada"), a fashion retailer that entered the Canadian marketplace in 2014, obtained CCAA protection on March 2. Nordstrom Canada currently operates 13 stores in Canada (seven being Nordstrom Rack stores) and employs approximately 2,330 employees. It has generated negative cash flows and losses during each year of operations since entering the Canadian market, excluding financial support from its US parent, which has enabled Nordstrom Canada to sustain operations. Since 2014, Nordstrom’s US parent and other US-based affiliates have provided Nordstrom Canada with approximately US$775 million in funding. The impact of high operating costs, stagnant sales growth, unfavourable exchange rates, the effects of the COVID-19 pandemic and lack of brand awareness have contributed to the overall poor financial performance of Nordstrom Canada. Following a review by Nordstrom US of Nordstrom Canada’s operations and financial performance, the board of directors of Nordstrom US determined to discontinue operational and financial support. A&M was appointed as Monitor. Osler is counsel for Nordstrom and Goodmans is counsel for the Monitor. By Dina Milivojevic

Merit Functional Foods Corporation

Merit Functional Foods Corporation, an operating entity which owns a plant protein production facility in Winnipeg, and 11410083 Canada Ltd., which owns the real estate on which Merit operates, were placed in receivership on March 1, on application by Export Development Canada and Farm Credit Canada. EDC and FCC are pari passi senior secured creditors collectively owed approximately $95 million. They provided financing for the development, construction and ramp-up of operations at the facility. In January 2022, Merit began suffering significant cash flow shortages. The companies have conducted an out-of-court sales process to sell their business and the production facility, which did not generate any formal offers. The companies are in default of their obligations under the credit facilities and were set to run out of operating cash in early March. PwC was appointed as Receiver. Gowling WLG is counsel for EDC and FCC, Taylor McCaffrey is counsel for the companies, Thompson Dorfman Sweatman is counsel for the Receiver, MLT Aikins is counsel for CIBC, and Stikeman Elliott is counsel for the Burcon Entities. By Dina Milivojevic

Southview Gardens BT Ltd., Southview Gardens Limited Partnership and Southview Gardens Properties Ltd. (collectively, “Southview Gardens”)

Southview Gardens BT Ltd., Southview Gardens Limited Partnership and Southview Gardens Properties Ltd. (collectively, "Southview Gardens"), Vancouver, British Columbia-based real estate companies, were placed in receivership on February 16, on application by Peakhill Capital Inc. In October 2020, Peakhill provided Southview Gardens with a demand facility mortgage loan for $50 million in relation to an apartment building located in Vancouver. Southview Gardens has defaulted on the loan, including by allowing an additional mortgage to be registered against the land without the consent of Peakhill, failing to pay a monthly interest installment to Peakhill, and failing to pay the full balance of the loan due on January 1, 2023. Each of the Southview Gardens entities is an affiliate of Coromandel Properties Ltd. which, along with dozens of other affiliates, filed for CCAA protection earlier this month. The Southview Gardens entities have since been removed from the proposed CCAA proceedings to allow Peakhill to appoint its own Receiver (KSV). Osler is counsel to Peakhill and Cassels is counsel to the Receiver. By Dina Milivojevic

The Very Good Food Company Inc. et al.

The Very Good Food Company Inc. et al., a Vancouver, BC-headquartered group of companies which produce plant-based meat and cheese products which are sold wholesale to retailers and also direct to consumers across Canada and the US, were placed in receivership on January 16, on application by Waygar Capital Inc., as agent for Ninepoint Canadian Senior Debt Master Fund L.P. The lender is owed approximately $8.1 million, and sought the appointment of a receiver as a result of, among other factors, breaches of the credit agreement, including a breach of the cash coverage ratio and exceeding the amount permitted by the borrowing base calculation, as well as alleged mismanagement of the business, all of which seriously jeopardized the lender’s collateral and the companies' ability to repay the loan. BDO was appointed receiver. MLT Aikins is counsel for Waygar. By Dina Milivojevic

Bloom Health Partners Inc. (CSE:BLMH)

Bloom Health Partners Inc. (CSE:BLMH), a healthcare company with a registered address in Vancouver, British Columbia, was placed in receivership on January 3, on application by CPL Investments LLC and Uloo Partners LLC (collectively, the "Sellers"). The company wholly owns Bloom Health Holdings Corp. (the "Buyer"), a Delaware corporation. In June 2021, the Buyer purchased the Sellers' interest in Round Hill Health Partners, LLC for consideration of US$12,250,000. The Buyer has repeatedly failed to make payments owed to Sellers. After granting the Buyer two waivers, the Sellers demanded payment in late October 2022. In November 2022, the company informed the Sellers that the company's board and its interim CEO had resigned, and that it intended to wind down its business. As a result, the Sellers sought the appointment of a receiver to act as the company's management and continue operations until July 31, 2023, so that the company can fulfil its contract to supply COVID-19 testing services to the Texas Department of State Health Services, coordinated with an orderly wind down and sale of redundant assets. BDO was appointed Receiver. Farris is counsel for the Sellers. By Dina Milivojevic

Geyser Brands Inc.

Geyser Brands Inc., the ultimate parent company of 0957102 BC Ltd. (d.b.a. Apothecary Botanicals) ("095"), which holds a license from Health Canada for the cultivation, processing and sale of medical cannabis, was placed in receivership on December 16, on application by 113 Royal Investments Ltd. ("113"), owed over $1.8 million, plus interest, on a secured basis. Since 2020, 113 has been providing financing to Geyser, which Geyser has used to maintain 095's business. 095 requires cash injections of approximately $70,000 per month in order to remain operating. 113 is not willing to provide financing to Geyser or 095 indefinitely, and wishes to realize on its security. BDO was appointed Receiver. Owen Bird is counsel for 113. By Dina Milivojevic

Payslate Inc.

Payslate Inc., a federally incorporated technology company that operates an online rental payment processing service for property owners and managers, filed an NOI on December 5, listing approximately $5.1 million in liabilities. The company is extra-provincially registered in British Columbia and Alberta, and also operates in the US through its wholly-owned subsidiary, RentMoola Payment Solutions LLC. The company's 21 employees, the majority of whom are located in British Columbia, operate entirely on a remote basis, and the company has no physical premises. The company began operations in April 2013 and, since that time, has incurred consolidated operating losses of approximately $39.4 million, primarily as a result of the company's inability to generate sufficient revenue or sufficient gross margins from revenue to cover its operating expenses. The company introduced a convertible note offering in an attempt to raise financing while it restructured its operations, but raised significantly less than the $4 million required. Grant Thornton is the proposal trustee. BLG is counsel for the company. By Dina Milivojevic

Van Vic Isle Construction Ltd.

Van Vic Isle Construction Ltd., a Revelstoke, British Columbia-based general contractor and design builder, had a receiver appointed over certain assets on December 2, 2022, on application by Mitsubishi HC Capital Canada, Inc., owed approximately $1.1 million plus interest and fees as at December 2, 2022. The company has defaulted on its payment obligations to Mistubishi under a credit agreement and subsequent forbearance agreement. Mitsubishi requested that a receiver be appointed over limited property so as to protect its collateral and maintain the status quo through a stay of proceedings while being minimally intrusive to the business, and to enable it to investigate a related party's purported exercise of a distress right. BDO was appointed receiver. Miller Thomson is counsel to Mitsubishi. By Dina Milivojevic

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