Manitoba

Polar Window of Canada Ltd. et al. (collectively, the “Accurate Group”)

Polar Window of Canada Ltd. et al. (collectively, the "Accurate Group"), a Winnipeg, Manitoba-based group of companies engaged in the supply of window, door and flooring products and services across Canada and the US, obtained CCAA protection on February 10. From March 2020 to July 2021, the owners of the companies embarked on an aggressive acquisition strategy during which they acquired five of the companies. A number of issues arose that negatively impacted operations during this period, including the Covid-19 pandemic and related plant closures, supply chain disruptions, higher input prices, project delays, the resignation of certain senior officers, and a mismatched procurement-to-cash cycle. Deloitte was appointed Monitor. Counsel is MLT Aikins for the Accurate Group, McDougall Gauley for the Monitor; Gowling WLG for TD Bank, the senior secured lender (owed approximately $9.7 million); Fasken for FWCU Capital; Loopstra Nixon for Sallyport Commercial Finance; Ammeter Law Group for Dean Borys and The Dean Borys Family Trust (2018); Thompson Dorfman Sweatman for National Flooring Limited Partnership and 7252359 Manitoba Ltd.; Sugar Law Group for 9859870 Canada Inc. and 11302078 Canada Ltd.; Gange, Collins & Associates for International Union of Painters and Allied Trades, District Council 17; Tapper Cuddy for Omniglass SCT. By Dina Milivojevic

Manitoba Clinic Medical Corporation (“Medco”)

Manitoba Clinic Medical Corporation ("Medco"), which operates the largest private healthcare clinic in Manitoba, and The Manitoba Clinic Holding Co. Ltd., which owns the real property where the clinic operates, obtained an initial order under the CCAA on November 30. Medco plays a significant role in Manitoba’s healthcare system, generating 90% of its revenue by billing the Manitoba Department of Health for services performed by physicians who enter into service agreements with Medco. In 2010, plans were made to construct a state of the art, ten-floor facility and to add two floors to the existing parkade, which was to be done in partnership with the CancerCare Manitoba Foundation. However, the second phase of construction, which was the construction of a new facility for CancerCare, did not proceed, and the companies were left with the large parkade. 52,000 square feet of space in the facility also remains unoccupied. In addition, in the past year, the companies have suffered losses due to, among other things, recent physician departures and an inability to recruit a full complement of physicians, which has negatively affected the companies' ability to generate income through invoicing Manitoba Health and recovering on overhead. A&M was appointed monitor. Counsel is Taylor McCaffrey for the companies, McDougall Gauley for the monitor and MLT Aikins for CIBC. By Dina Milivojevic

North American Lamb Company (“NALCO”)

North American Lamb Company ("NALCO"), a Manitoba and Alberta-based lamb producer and processor, and various subsidiaries (the "NALCO Group") obtained CCAA protection on August 8, on application by Fresh Canada Meats Ltd. ("FCM"), a creditor and majority shareholder of the NALCO Group. Approximately 70% of the lambs produced in Alberta are processed by the NALCO Group. Notwithstanding this significant market share, the company has incurred ongoing operating losses since its inception in 2018. By May 2022, the NALCO Group faced a severe liquidity challenge and began delaying payments to non-essential creditors to preserve cash. This crisis ultimately culminated in both of the NALCO Group's primary secured creditors, BNS and FCC, serving notices of intention under the Farm Debt Mediation Act and the BIA. EY was appointed monitor. Counsel is North & Company for NALCO, MLT Aikins for FCM, McMillan for BNS, Sharek Logan & van Leenen for FCC, Norton Rose for the monitor and Bennett Jones for 2079468 Alberta Ltd., the NALCO Group's minority shareholder. By Dina Milivojevic

Modern Acrylic Systems Ltd.

Modern Acrylic Systems Ltd., a Winnipeg, Manitoba-based company whose primary business was providing exterior insulation and finishing services, was placed in receivership on May 18, on application by TD Bank, owed approximately $300,000 on a secured basis. The company had previously assigned itself into bankruptcy on April 25 and LC Taylor & Co. was appointed bankruptcy trustee. The bankruptcy trustee declined to act as agent for TD Bank in respect of the preservation and collection of the company's accounts receivable. Grant Thornton was appointed receiver. Counsel is MLT Aikins for TD Bank and Taylor McCaffrey for the receiver. By Dina Milivojevic

The Winning Combination Inc

The Winning Combination Inc., a Winnipeg, Manitoba-based manufacturer of protein powders and sport supplement products, was placed in receivership on March 17, on application by HSBC Bank Canada, owed approximately CAD $10.3 million and USD $145.3 thousand as at February 22. In early 2022, the company advised the Bank that two entities were interested in providing equity or debt financing, but no transaction materialized. On or about February 9, the company requested that the Bank extend credit to the company over and above the approved credit limit in order for the company to meet its payroll obligations and make raw material purchases. On or about February 14, the company disclosed to the Bank that it had unpaid source deduction and GST obligations to CRA in the amounts of approximately $1.4 million and $400,000, respectively, notwithstanding that the company had been signing compliance certificates confirming all amounts owing to CRA were paid and up to date. On February 25, the Bank extended $144,297.60 for the company's payroll obligations and approximately $54,000.00 to be applied towards the company's source deduction and GST obligations to CRA, over and above the company's approved credit limit. Nevertheless, the company remained unable to pay its payroll and tax obligations, and the Bank was not prepared to provide further financial assistance over and above the current credit limits. EY was appointed receiver. Counsel is Fasken Martineau and MLT Aikins for HSBC Bank Canada, McCarthy Tetrault and Pitblado for the company and Thompson Dorfman Sweatman for the receiver. By Dina Milivojevic

Cura-Can Health Corp. and its wholly-owned subsidiary, The Clinic Network Canada Inc.

Cura-Can Health Corp. and its wholly-owned subsidiary, The Clinic Network Canada Inc., were placed in receivership on February 7 on application by Avonlea-Drewery Holdings Inc., owed approximately $16.4 million. The companies hold investments in medical cannabis clinics operating in Alberta, Saskatchewan, Manitoba, and Ontario, and currently have no active operations. KPMG was appointed receiver. Counsel is Dentons for the companies, Aird & Berlis for the applicant and Cassels for the receiver. By Dina Milivojevic

6106234 Manitoba Ltd. (o/a The Pas Home Hardware)

6106234 Manitoba Ltd. (o/a The Pas Home Hardware), a hardware store located in The Pas, Manitoba, was placed in receivership on October 29 on application by RBC, owed approximately $1.2 million. RBC has been providing credit to the company since 2013. In 2020, the company began experiencing financial difficulties and defaulted on its obligations to RBC. The parties entered into a forbearance agreement that was subsequently extended on two occasions, such that the agreement expired on August 31, 2021. In September, the company advised RBC that it was unwilling to enter into a further extension. In early October, the company ceased all business operations and closed the doors to the store. Deloitte was appointed receiver. Counsel is Taylor McCaffrey for RBC.

10000050 Manitoba Ltd.

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

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)

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.

Sign up for the newsletter and get the latest insolvency news.

Sign Me Up