Norcon, a Clarenville, Newfoundland and Labrador-based marine transportation company that operates passenger/freight and cargo ships, was deemed bankrupt on December 25. The company, which owes BDC over $1.4 million, has been negatively affected by the loss of government contracts of ferry services, the general downturn in the aquaculture business, and the need to write off a large debt from a related company. The company had previously filed an NOI on November 25 and subsequently attempted to transition its proposal proceedings into CCAA proceedings but was unsuccessful. BDC's application for a court-appointed receiver was also dismissed and it therefore turned to a privately appointed receiver to realize on its security. Deloitte is the bankruptcy trustee. Grant Thornton is the private receiver. Counsel is Boyneclarke for the company, Cox & Palmer for BDC, McInnes Cooper for the trustee, and Stewart McKelvey for BNS.
Imperial Excavating, a Holyrood, Newfoundland-based excavation company, filed for bankruptcy on August 16. Deloitte is the bankruptcy trustee.
British Confectionery Company and British Baazar Company, a St. John's, Newfoundland and Labrador-based manufacturer of specialty paper, obtained protection under the CCAA on April 29. The company, which focuses on manufacturing break-open lottery and promotional products, had previously filed an NOI on November 5. Attributing its financial difficulties to a variety of factors including product recalls, a fire at its production facility, and lower margins on new contracts, the company was able to attract an investor during the proposal proceedings. The investor's offer contained several conditions though, including the requirement that the province participate in providing financing to the company. Though the province seemed willing, it indicated that as a result of the calling of a provincial election, there would be a moratorium on such decisions until after the new government is installed. The company therefore converted its proceedings from the BIA to the CCAA to allow additional time for the province and investor to consider the transaction. Deloitte is the monitor. BoyneClarke is counsel for the company.
Sports Villas Resort, a Port Blandford, Newfoundland & Labrador-based golf resort, was placed in receivership on November 12, listing $8.1MM in liabilities, including $3.3MM to BDC. BDO is the privately-appointed receiver.
British Bazaar Company and British Confectionery Company, St. John's, Newfoundland and Labrador-based wholesalers of candy and related products, filed an NOI on November 5, listing $8.4MM in liabilities, including $3.4MM to BMO and $1.8MM to Atlantic Canada Opportunities Agency. Deloitte is the proposal trustee.
Burry's Shipyard, a Clarenville, Newfoundland and Labrador-based provider of services in machining, fabrication, maintenance and ship repairs, filed an NOI on July 10, listing $4.9MM in liabilities, including $1.7MM to Norcon Marine Services and $1.1MM to BDC. Deloitte is the proposal trustee.