Vert Infrastructure Ltd. (CSE:VVV), a holding company which provides funding, infrastructure, and branding to affiliated licenced cannabis and hemp growers and extractors in the US, was placed in receivership on June 16 on application by KW Capital Partners Limited, owed approximately $5.2 million as the agent on behalf of the company's secured lenders. It is alleged that the company transferred money to its most significant subsidiary, Elite Ventures Group LLP, for the purposes of developing certain real property interests in Nevada, US. Currently, the applicant is seeking the appointment of a receiver to investigate whether the transfer of funds from Elite to other parties for no consideration constitutes a transaction at undervalue. The company's most recent interim financial statements indicate that it has a cash balance of under $2,000 and a shareholders' deficit of more than $22.0 million. KSV Advisory was appointed receiver. Garfinkle Biderman is counsel to the applicant.
C. & C. Wood Products Ltd., a manufacturer of wood products with mill facilities in Cranbrook and Quesnel, British Columbia, along with its subsidiary, Westside Logging Ltd., were placed in receivership on June 5 on application by Callidus Capital, owed approximately $91.0 million. Over the last two years, the companies sustained significant operating losses. Although the companies previously attempted to implement various restructuring initiatives and turnarounds, none of these resulted in a cash flow positive operation or a going concern sale of the companies. As a result, the companies' two facilities have now been shut down. PwC was appointed receiver. Lawson Lundell is counsel to the applicant.
Metric Modular, an Agassiz, British Columbia-based modular construction company, filed an NOI on June 1, listing approximately $14.7 million in liabilities, including $9.3 million to ATB Financial. The company attributed its financial difficulties to the significant decline in sales volume over the past several years, which caused financial losses to accumulate. Based on historical performance and future trends, the company's forecasted future losses are too significant to be supported by its available cash flow. Grant Thornton is the proposal trustee.
Port Capital Development (EV) Inc. and Evergreen House Development Limited Partnership, subsidiaries of the Port Capital Group, which is in the business of real estate development and management primarily in British Columbia, obtained protection under the CCAA on May 29, listing approximately $46.7 million in liabilities, including $20.1 million to CMLS Financial Ltd. and $14.7 million to Aviva Insurance Company of Canada. Together, the companies own the Terrace House Project, a 19-storey mixed-use luxury residential development located in Vancouver. As the companies are undercapitalized in terms of equity, they are unable to meet their obligation to fund any cost overruns on the Terrace House Project. Furthermore, the Port Capital Group has been unable to advance funds, so the companies cannot pay the interest due to their construction lender, CMLS Financial. EY was appointed monitor. Counsel is Gowling WLG for CMLS Financial, Blakes for the monitor, and Lawson Lundell for Aviva Insurance.
Eagle Q Partners Inc., a Vancouver, British Columbia-based company founded by Chris Jin, was placed in receivership on May 26 on application by Hong Liu and Meng Rui Li. The applicants allege that it is unclear what the company's business is other than having advanced considerable sums of money to the Westside Preparatory School (the "School"). Both the company and Jin, a former director of the Westside Preparatory Society — the not-for-profit society which governs the School — have been the subjects of various lawsuits, including an action against Jin alleging fraud, deceit, and fraudulent misrepresentation. These civil actions and the company's mismanagement have caused operating problems for the School, which owes the company approximately $4.1 million. In light of such circumstances, it appears the assets over which the applicants have security are at risk of being dissipated. Multiple actions have been commenced by the company's creditors and the applicants allege that Jin appears to be taking steps which may compromise the company's assets. FTI was appointed receiver. Fasken is counsel to the applicants.
Encore Vineyards Ltd., the last of a group of wineries built under the full stewardship of the late Harry McWatters, best known as the founder of Sumac Ridge Estate Winery and See Ya Later Ranch, and the founding chairman of VQA Canada, BC Hospitality Foundation, and BC Wine Institute, filed a proposal on May 7, listing approximately $18.0 million in liabilities, including $5.0 million owed to BMO. In July 2018, the company opened the TIME Winery & Kitchen in Penticton, British Columbia, with a 15,000 square foot facility offering a tasting bar, a lounge, and an outdoor patio for customers. In recent years, the company has not been profitable, with losses attributable to significant delays and cost overruns in the construction of its premises, large carrying costs on debt and higher than expected marketing costs, as well as factors outside of the company's control such as the Alberta wine boycott and forest fires impacting tourism. The company has completed a sales process and a transaction is contemplated in the proposal whereby a purchaser will pay $5.8 million for the assets of the company upon court approval of the proposal. BDO is the proposal trustee. Counsel is Fulton & Company for the company and Lawson Lundell for BMO.
Foodora Inc., the Canadian subsidiary of Delivery Hero SE and an online food-delivery service company that has operations in Ontario, Quebec, Alberta and British Columbia, filed an NOI on April 27, listing approximately $4.7 million in liabilities, with the vast majority of money owed to restaurants. The company, which intends to continue to operate until May 11, is working on a proposal to make to its employees and other creditors. Earlier this year, the Ontario Labour Relations Board ruled that Foodora couriers were dependent contractors and had the right to form a union. Grant Thornton is the proposal trustee. Blakes is general counsel for the company and Dentons is counsel for the company relating to employment matters.
Neucel Specialty Cellulose Ltd., which owns a pulp mill in Port Alice, British Columbia, was adjudged bankrupt and placed in receivership on April 22 on application by the Province of BC, owed approximately $13.1 million. The company had purchased the assets of the Port Alice mill for $1 with an investment plan of $40 million before September 2007. In 2011, Fulida (Canada) Holdings purchased Neucel and announced an upgrade project totalling $33.9 million, although this project was never commenced. In 2015, the company announced a six-month curtailment of the Port Alice mill. However, since then, the mill has not returned to production status and the last annual report the company filed was in 2018. In early 2019, the company instructed the remaining maintenance workers at the Port Alice mill to vacate the site. After the affected workers contacted the Ministry of Environment and Climate Change Strategy ("ENV"), it conducted an on-site chemical hazard assessment and notified the company that it would take certain spill response actions, which cost over $11.9 million to conduct. The actions included removing over 855,000 litres of 10% Spent Sulphite Liquor, a hazardous sulphite by-product of the pulping process, removing over 437,000 litres of ammonium bisulphate and facilitating the removal by the Canadian Nuclear Safety Commission of 8 radioactive nuclear sources from the mill site. Despite ENV's efforts, various concerns remain. The company's employees continue to cause environmental damage and the company additionally appears to have taken steps to dissipate its assets. PwC is the bankruptcy trustee and court-appointed receiver. Counsel is Fasken for PwC and Pacific Rim Law for Fulida
One Ocean Expeditions Inc., a Squamish, British Columbia-based polar cruise company that charters small-ship travel to Antarctica, the Arctic, Atlantic Canada and other locations, filed an NOI on April 17, listing approximately $29.5 million in liabilities, including $1.5 million to Swoop Travel and $2.8 million to Export Development Canada. The current global pandemic has disrupted the company's ongoing efforts to restructure and reposition since the Russian government unexpectedly cancelled leases on two of its ships last year. PwC is the proposal trustee.
SNFW Fitness B.C. Ltd., which operates 29 fitness facilities in British Columbia, filed an NOI on April 3, listing approximately $35.4 million in liabilities, including $32.0 to BMO. Founded in 2009 through a merger between Fitness World and Steve Nash Sports Club, the company's fitness facilities currently do business as "UFC Gym" and "Steve Nash Fitness World and Sport Club." On March 17, the company issued a notice to all of its members that due to the Province of BC limiting gatherings of 50 people to slow the spread of COVID-19, all facilities would be shut down effective immediately. Subsequently, the company terminated all of its staff except a handful of key personnel. The company's Board of Directors estimates that the company will require an equity injection of over $10.0 million to fund COVID-19 shutdown costs and operating losses to get a break-even level after COVID-19 restrictions are lifted. The company is now seeking court approval of a sale and investment solicitation process. The Bowra Group is the proposal trustee. Counsel is Lawson Lundell for the company and Dentons for BMO.