Otso Gold Corp., a BC-based mining company focused on acquiring and developing prime resource assets such as gold and copper in safe harbour jurisdictions, was placed in receivership on an interim basis on January 14, on application by the company's largest creditor, Pandion Mine Finance, owed approximately $31 million. At the time, the company was subject to CCAA proceedings, having sought protection after the company's former CEO and others were discovered to have allegedly committed embezzlement and fraud in connection with the company's assets. Pandion brought a receivership application, arguing that, among other things, the CCAA proceedings were eroding Pandion's collateral. The company opposed, arguing that, among other things, Pandion had not delivered notice under s. 244 of the BIA and that, as a consequence, was only entitled to the appointment of an interim receiver under s. 47 of the BIA. The company also argued that the amount of Pandion's debt was not as claimed. The Court granted the interim receivership order, which is to remain in force until the release of the reasons for decision on the receivership application. Deloitte was appointed interim receiver. Counsel is Farris for the company, BLG for the interim receiver and Cassels for Pandion. By Dina Milivojevic
Community Marine Concepts Ltd., Victoria International Marina Ltd., Eternaland Yuheng Investment Holding Ltd., and 0736657 B.C. Ltd., Vancouver Island, British Columbia based companies, were placed in receivership on December 13, on application by the Bank of Nova Scotia. The Bank provided the companies with a non-revolving term loan in the principal amount of $17,080,000 to provide bridge financing for the construction of a luxury yacht center in Victoria Harbour on Vancouver Island known as the Victoria International Marina. As at August 2021, when the petition was initially filed, the companies had been in default of their payment obligations for 15 months and remained indebted to the Bank in the amount of approximately $15.5 million, excluding fees and interest. The receivership order was granted on November 1 and provided that the companies would automatically be placed in receivership on December 13 unless the debt to the Bank was repaid in full prior to that date. Alvarez and Marsal was appointed receiver. Counsel is Blakes for the Bank and Crystal Law for the companies.
Otso Gold Corp. (TSX-V:OTSO) and certain related entities obtained protection under the CCAA on December 3. The companies are engaged in mineral exploration and development, focused on acquiring and developing prime resource assets, such as gold and copper, in safe harbour jurisdictions. Their primary business pertains to the development of the Laiva Gold Project in Norther Ostrobothnia, Finland (the "Otso Gold Mine"). Otso also owns a 49% interest in a Copper Creek porphyry copper gold exploration project situated in the golden triangle in British Columbia. The companies’ largest creditor is Pandion Mine Finance, which has advanced a total principal amount of $32,600,000 USD to the companies between 2017 and 2020. As at December 7, 2021 (when the loan is due), the amount owing to Pandion inclusive of principal and interest will be $25,875,000 USD. Until November 2021, the companies were managed by Lionsbridge Capital Pty Ltd., and the majority of Otso's directors and officers were Lionsbridge nominees. As a result of various concerns relating to Lionsbridge's management, A&M was appointed to provide restructuring services to the companies on November 24. Shortly thereafter, Lionsbridge's principals resigned and purported to terminate the management agreement. The companies also discovered that, among other things, Lionsbridge's office at the Otso Gold Mine had been completely emptied and Otso's computers and files had been removed; there were unaccounted for charges on Otso's credit card; and one of the companies had sold approximately $740,000 of gold which was paid for by wire transfer, but the funds are allegedly missing from Otso's bank accounts. Based on the above, an Otso executive made contact with Finnish border control services to report possible criminal activity, and, according to the company, Finnish authorities have apprehended one of the principals and placed him into custody. Deloitte was appointed monitor. Counsel is Farris for the companies, BLG for the monitor and Cassels for Pandion.
Portliving Farms (3624 Parkview) Investments Inc. and various related entities, the owners of the Beachside Motel, the Sunny Beach Motel and the Waterfront Inn in Penticton, British Columbia, had a receiver appointed on November 29, on application by Prospera Credit Union, owed approximately $4.99 million. The Bowra Group was appointed receiver. Counsel is BHL Vancouver for the receiver.
Trident Processes Inc., an Abbotsford, BC-based provider of sludge treatment, resource recovery and wastewater treatment solutions, had a receiver appointed on October 28, on application by Export Development Canada, owed US$2.6 million. Trident has two subsidiaries in the US and has active operations in both Canada and the US. Pursuant to a forbearance agreement entered into on March 11, 2021, EDC agreed to forbear from enforcing its debt until May 14, 2021. During the forbearance period, an independent business review was conducted and identified potential improper payments being made to the company’s shareholders. Since the forbearance agreement expired in May 2021, Trident has not made any payment, reporting or other communications to EDC. In September 2021, the lawyer who maintains Trident's corporate records indicated that one of Trident's subsidiaries in the US was sold. PwC was appointed receiver. Counsel is Gowling (WLG) for EDC and Nathanson, Schachter & Thompson LLP for the receiver.
Halo Metrics Inc., a Richmond, British Columbia-based reseller of technology, products, and services for retail security and merchandising operating out of leased premises in Mississauga, Ontario, filed an assignment in bankruptcy on October 8, 2021, listing assets of approximately $1.4 million and liabilities of approximately $2.9 million. The Bowra Group is the bankruptcy trustee.
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.