10000050 Manitoba Ltd., the owner of a Bombardier Challenger 604 (the "Aircraft"), had a receiver appointed over the Aircraft on September 16 on application by PNC Equipment Finance, a Division of PNC Bank Canada Branch ("PNC"). To finance the acquisition of the Aircraft, the company borrowed US$3.36 million pursuant to an Aircraft Loan Agreement which was secured by the Aircraft. The company has been in continuous default under the Aircraft Loan Agreement since June 1, 2021, including because of the commencement of proposal proceedings by the company's sole shareholder, Sean McCoshen. As of July 9, the outstanding indebtedness under the Aircraft Loan Agreement was approximately US$3.05 million. Immediately following the granting of the Receivership Order, an Approval and Vesting Order was issued approving the sale of the Aircraft to Sunwest Aviation Ltd. Farber was appointed receiver. Counsel is Blakes for PNC and MLT Aikins for the receiver.
Bonify Holdings Corporation, a Winnipeg, Manitoba-based cannabis company, made an assignment in bankruptcy on September 9, listing approximately $14.5 million in liabilities, including approximately $13.8 million to The Assiniboine Credit Union Limited. Three of the company's executives were dismissed in December 2018 after it was determined they had used a third party to buy cannabis from the black market, selling it in several Manitoba and Saskatchewan retail stores. The company's licence to sell cannabis was suspended at the time, but was reinstated in October 2019. An investigation found that the company had 200 kilograms of cannabis product in its facility that was not authorized for sale. The company undertook an orderly wind-down of its business operations prior to the bankruptcy filing, and cited a lack of access to capital as the cause of its inability to continue. EY is the bankruptcy trustee. Counsel is Taylor McCaffrey for The Assiniboine Credit Union Limited, and MLT Aikins acted as counsel for the company prior to the bankruptcy.
5689482 Manitoba Ltd. & 5480082 Manitoba Ltd. (o.a Fun Mountain), which operated as a Winnipeg, Manitoba-based water slide park, had a receiver appointed over its assets on September 9 on application by BDC, owed approximately $850,000. The assets of the companies include the real property on which the waterpark is located. Grant Thornton was appointed receiver. Counsel is Fillmore Riley for BDC and Taylor McCaffrey for the receiver.
Natural Health Services Ltd., which operated medical clinics that specialized in dispensing cannabinoids across Alberta, Saskatchewan, Manitoba, and Ontario, filed for bankruptcy on August 6. KPMG is the bankruptcy trustee. Counsel is Dentons for the company and Torys for the trustee.
Kings Cargo Express Ltd. ("Kings Cargo") and Canada Cargo Lines Ltd., Winnipeg, Manitoba-based companies that provide long haul trucking delivery services across the US and Canada, were placed in receivership on October 5 on application by TD, owed approximately $2.2 million. The companies were frequently late on their requisite monthly reporting to TD and Kings Cargo regularly overdrew on its operating loan without providing adequate payments into the account to reduce the line. Due to this lack of transparency in reporting, TD argued that it had no visibility, knowledge, or control over the companies' accounts receivable, which are worth approximately $2.0 million (CAD) and $1.0 million (USD), and that the appointment of a receiver was required to prevent a further devaluation of TD's collateral. Deloitte was appointed receiver. Counsel is Dentons for the applicant, Taylor McCaffrey for the receiver and Hill Sokalski Walsh for the company.
Composites Innovation Centre Manitoba Inc., a Winnipeg, Manitoba-based not-for-profit engineering firm that provides design, analysis, testing, and fabrication services to the manufacturing industry, filed for bankruptcy on April 14, listing approximately $1.5 million in liabilities. When the company was first formed, it was backed by Boeing Canada and a group of some of Canada's largest agricultural equipment manufacturers. However, the company's efforts to develop the supply chain necessary to make its work sustainable consistently proved unfruitful. Eventually, the company lost a significant amount of its public sector operating and project funding from the provincial and federal governments. Deloitte is the bankruptcy trustee.
Nygard Properties, Nygard Enterprises, Nygard International Partnership, 4093887 Canada, and 4093879 Canada (collectively, the “Nygard Group”), a Winnipeg, Manitoba-based clothing brand, each filed an NOI on March 9. Last month, the company's founder and chairman, Peter Nygard, agreed to step down from his company and divest his ownership interest after an FBI raid of the company's New York headquarters and news that a class action lawsuit had been launched against him for alleged sexual assault. Farber is the proposal trustee.
Nygard Group, a Winnipeg, Manitoba-based clothing brand, was placed in receivership on March 18 on application by White Oak Commercial Finance, owed approximately $25.9 million (USD). The entities within the Nygard Group had each filed an NOI on March 9 but the automatic stay of proceedings did not apply to White Oak, which had issued its Notice of Intention to Enforce Security more than 10 days prior. In breach of several conditions under its credit agreement, the Nygard Group has lost the trust of its lenders. White Oak alleges that it has not been receiving timely or accurate information, and several significant decisions were recently made by the group without White Oak's consultation, including the decision to close its retail stores, distribution centres and website. The proposal trustee too has only received limited information, leading it to conclude that it was not in a position to advise that the group was acting with good faith or due diligence. Richter was appointed receiver. Counsel is Pitblado and Osler for the applicant and Thompson Dorfman Sweatman for the receiver.
Belkin Holdings and certain other related companies were placed in receivership on August 2 on application by BMO, owed approximately $8.1 million. The companies' primary asset is a 6 story apartment building in Winnipeg, Manitoba referred to as Kelly Towers. The companies' management failed to respond in a timely fashion or at all to requests for financial and other information, and with its financial benchmarks deteriorating, RBC demanded repayment from the companies. MNP was appointed receiver. Bennett Jones is counsel for the applicant.
Gymboree Group, a San Francisco, California-based chain of specialty retail stores for children’s apparel with operations across the US, Canada and Australia filed for bankruptcy under Chapter 11 in the United States Bankruptcy Court on January 17. Concurrently, Gymboree ("Gymboree Canada" or the "Company") filed an NOI on January 17, listing $9.4M of liabilities, including $8.9M of liabilities that are owed to entities that are subsidiaries of the Gymboree Group. The Company operates 49 retail stores in Alberta, British Columbia, Manitoba, Nova Scotia and Ontario. A group of agents including Great American, Tiger, Gordon Brothers, and Hilco (the "Agents") will be leading liquidation efforts across the US and Canada. KPMG is the proposal trustee. Counsel is Norton Rose Fulbright for the Company, Osler for the proposal trustee and Cassels Brock for the Agents.