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.
Corner Equipment, a Carroll, Manitoba-based company that carries on the business of sales, leasing, rental and service of new and used agricultural machinery and equipment, filed an NOI on June 15, listing $10.0MM in liabilities, including $2.4MM to Farm Credit Canada ("FCC") and $1.5MM to the National Bank of Canada. Part of the reason for the company's desire to seek creditor protection is the fact that FCC, one of the company's floor plan lenders, has taken the position that the company is out of trust with respect to certain equipment sold. Another factor that contributed to the company's financial difficulties is a clear trend of acquiring used equipment at unprofitable valuations. On July 11, the company received an extension of time within which it may file a proposal. While a sale on a going concern basis as well as payment of unsecured creditors are both highly unlikely at this point, an orderly wind down will benefit some of the company's secured lenders. PwC is the proposal trustee. Counsel is Tapper Cuddy for the company, Taylor McCaffrey for FCC and MLT Aikins for the National Bank of Canada.
Wheeler Funeral Home, Cemetery and Crematorium, based in Winnipeg, Manitoba, was placed in receivership on March 20 on application by Timothy Price and certain other related parties. According to a recent CBC story, funds and records are missing for 48 people who prepaid for funeral services, totaling $121.0M. Lazer Grant (ICIN) was appointed receiver. Counsel is Thompson Dorfman Sweatman for the applicant.