Basin Mine Limited Partnership, a limited partnership ultimately owned by Arthon Industries, filed an NOI on October 3. In 2015, the partnership acquired, through the CCAA proceedings of Coalmont Energy Corp, the mining permit to develop and operate an open pit coal mine near Coalmont, British Columbia. The mine was anticipated to produce approximately 500.0M tonnes of thermal coal per year. Full scale production has never taken place though, due primarily to the price of thermal coal dropping well below the break-even point for the mine. The mine currently does not generate any revenue and incurs costs of approximately $60.0M per month to keep it under care and maintenance. In early 2016, Callidus Capital, the partnership's senior secured lender owed approximately $63.3MM, advised that it wanted the partnership to sell its assets, primarily to stop the mine's ongoing care and maintenance costs, which it funded. The partnership, with the assistance of Ritchie Bros and MNP Corporate Finance, commenced a sales process that ultimately produced one offer from Pioneer Sand and Gravel (Pioneer). In order to convey the assets to Pioneer free and clear of encumbrances and charges, the transaction will be completed under a formal insolvency process. EY is the proposal trustee. Counsel is Cassels Brock for the company and BLG for Callidus.
PE Consulting, a Richmond, British Columbia-based company whose primary asset is land having the civic address 2791 Highview Place West Vancouver, British Columbia, was placed in receivership on June 8 on application by G. Powroznik Group, in its capacity as trustee of the bankrupt estate of Jizhe (Mary) Yang, the sole director and shareholder of PE Consulting. In November 2015, Yang and her husband, Samuel Zhu, were together found liable for over $20.0MM USD for fraud conducted against Zhu's former employer, Prima Technology (details HERE). G. Powroznik Group was appointed receiver. Counsel is Burns Fitzpatrick for the applicant.
Purcell Basin Minerals, Bul River Mineral Corporation, Gallowai Metal Mining, Grand Mineral Corporation and Stanfield Mining Group, Cranbrook, British Columbia-based developers of mineral resources and a mining property near the Rocky Mountains, filed for protection under the CCAA on May 29. Purcell had acquired the mine and the other petitioners in 2014 by way of a court-sanctioned plan of arrangement in the Stanfield CCAA proceedings. A year later, Brendan MacMillan, who was the sole director and officer of Purcell at that time, took some steps to further the development of the mine. However, he also caused the company to, among other things, secure his claimed compensation and issue three million shares to him. In 2016, two of Purcell's shareholders successfully challenged these transactions as being oppressive. Since the implementation of the Stanfield plan of arrangement, Purcell's business has been hampered by the oppressive actions of MacMillan and by litigation involving Purcell, its lenders and its shareholders. The company currently has no cash on hand, no income and no inflow of equity capital. The company will use the CCAA proceedings to, among other things, conduct a claims process to determine the validity and status of all creditors' claims, restructure its secured debt and seek new capital. MNP was appointed monitor. Counsel is Gowling WLG for the companies and Lawson Lundell for the monitor.
Wavefront Innovation Society, a Vancouver, British Columbia-based startup accelerator focused on mobile and IoT (Internet of Things) innovation, filed for bankruptcy on May 14, listing $2.1MM in liabilities, including $958.5M to the National Research Council of Canada and its Centres of Excellence for Commercialization and Research. While the company once presented itself as a key player in facilitating the creation of technological "smart cities", declining sources of revenue have contributed to its financial downturn. Grant Thornton is the bankruptcy trustee.
VI Fitness Centres Inc., a British Columbia-based fitness chain with eight locations on Vancouver Island, filed for bankruptcy on May 1, listing $5.7MM in liabilities. The company went through financial difficulties due to increased competition and could no longer sustain the operating loss. The Bowra Group Inc. is the Licensed Insolvency Trustee.
Control Mobile, a Vancouver, British Columbia-based technology company, was placed in receivership on April 12 on application by the McDonnell Group, owed approximately $508.6M. Founded in 2014 and backed by Vanedge Capital and BDC Capital, the company provides an analytics platform for online businesses to manage and analyze their online transaction data and quickly grew to over 25.0M customers. Despite its growth, the company recently ran into cash flow difficulties. In January 2018, the company accepted a secured promissory note from the McDonnell Group, but defaulted on the note soon after. Crowe MacKay was appointed receiver. Counsel is Fasken for the applicant and Farris for the company.
BuildDirect, a Vancouver, British Columbia-based technology company that has built and operates an online market platform for home improvement products in Canada and the U.S., filed for protection under the CCAA on October 31. Although the company's operations consistently generated significant revenue, it failed to achieve profitability and currently owes its lenders approximately $75.0MM. The immediate cause of the company's financial difficulties, however, was its failure to complete an equity financing in mid-October. During the proceedings, the company will receive $15.0MM in DIP financing from its interim lenders while it pursues a potential sale. The company's cash flow forecast shows that the company expects to use up to $8.5MM in cash in the next five weeks. PwC was appointed monitor. Alvarez & Marsal is financial advisor to the interim lenders. Counsel is Fasken Martineau for the company and BLG for the monitor.