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.