2051095 Ontario Inc. o/a Pizza Workz

2051095 Ontario Inc. o/a Pizza Workz, which formerly operated as a pizza store in Carp, Ontario, filed an assignment in bankruptcy on April 29. There was a dispute amongst the shareholders as to the operations and management of the business regarding receipts and payments. On examination by the majority shareholder, it was ascertained that the company’s indebtedness far exceeded its repaying capacity. As there was no visibility towards the revival of business, the company filed an assignment in bankruptcy. Goldhar & Associates is the bankruptcy trustee. By Dina Milivojevic

30 Roe Investments Corp.

30 Roe Investments Corp., the owner of a condominium located at 30 Roehampton Avenue in Toronto, Ontario, was placed in receivership on May 9 on application by Kingsett Mortgage Corporation, owed approximately $1.9 million as at January 2022. The original maturity date of the loan was in April 2021. Since that time, Kingsett has agreed to three extensions to allow the company to, among other things, pursue refinancing. These efforts have not been successful. KSV was appointed receiver. The company has appealed the receivership order. Counsel is Goodmans for the receiver, Bennett Jones for Kingsett and Solmon Rothbart Tourgis Slodovnick for the company. By Dina Milivojevic

2513036 Ontario Ltd.

2513036 Ontario Ltd., which operated as a Sport Clips franchise from a leased location in Ajax, Ontario, was deemed bankrupt on May 5, listing approximately $204,000 in liabilities. The Company previously filed an NOI on April 25, but failed to file the projected cash flows within the 10-day period and was deemed bankrupt. BDO is the bankruptcy trustee and previously acted as the proposal trustee. By Dina Milivojevic

Clearford Water Systems Inc. (TSXV:CLI)

Clearford Water Systems Inc. (TSXV:CLI), an Ottawa, Ontario-based provider of unified water management solutions for the design, deployment, finance and operation of water infrastructure systems, filed an NOI on April 28. KSV is the proposal trustee. Perley-Robertson, Hill & McDougall for the company; DLA Piper for Morebath/Lexus (a secured creditor); and Aird & Berlis for the proposal trustee. By Dina Milivojevic

Mooney’s Bay (Ottawa) Seniors Community Real Estate Limited Partnership

Mooney’s Bay (Ottawa) Seniors Community Real Estate Limited Partnership, a partnership formed to acquire and develop land in the City of Ottawa, filed an NOI on April 28, listing approximately $27.3 million in liabilities, including approximately $15.2 million to Fiera FP Real Estate Financing Fund. The project has been approved to be developed as an active seniors living project, including a 6-floor seniors apartment and retirement residence, along with 26 town homes, 36 flats and 62 mixed use units, on a 10.6 acre site across from Mooney’s Bay in central Ottawa. The project was delayed as a result of the COVID-19 pandemic, and increasing interest costs since 2020 have caused the partnership to consider options for further capital investment, or to commence a formal sales process to divest itself of the project. The partnership is currently soliciting offers to list and market the site. MNP is the proposal trustee. By Dina Milivojevic

12413906 Canada Inc. o/a AJ Concept Auto Modifications

12413906 Canada Inc. o/a AJ Concept Auto Modifications, a Thornhill, Ontario based automotive parts and accessory modification workshop, filed an assignment in bankruptcy on April 27, listing approximately $340,000 in liabilities. The business volume during the COVID-19 pandemic was much lower than the anticipated level and there were negligible clients during the extended period of restrictions. The company continued to incur fixed costs and, with no visibility towards the revival of business, it filed an assignment in bankruptcy. Goldhar & Associates is the bankruptcy trustee. By Dina Milivojevic

Tazarmc Inc.

Tazarmc Inc., a Trenton, Ontario-based steel fabricator and service provider to multi-disciplined industrial and commercial construction projects throughout Canada and the United States, filed an NOI on April 20, listing approximately $4 million in liabilities, including approximately $1.3 million to Vulcraft Canada. KPMG is the proposal trustee. Counsel is Dickinson Wright for the company and KRB Law for National Bank. By Dina Milivojevic

Hazelton Development Corporation

Hazelton Development Corporation, a developer of a residential real estate project known as the “Highlight of Mississauga” located at 4064, 4070 and 4078 Dixie Road, Mississauga, Ontario, obtained CCAA protection on April 20. The majority of the 265 planned units in the project have been sold, although construction is at the stage that twelve of the fourteen floors have been constructed, though not finished. Construction was significantly delayed due to pandemic-related shutdowns, labour and supply shortages, and increasing costs. Construction lenders are Meridian Credit Union Limited and Centurion Mortgage Capital Corporation, with Westmount Guarantee Services Inc. providing a Tarion Warranty Corporation Bond and a deposit insurance facility. Total debts are in excess of $80 million. Counsel is Miller Thomson for the company; TGF for the monitor; Simpson Wigle for Meridian; Robbins Appleby for Centurion; BLG for Westmount; and Hodder, Wang for Triumph Eastern Investments (the DIP lender). By Dina Milivojevic

Chisel AI

Chisel AI, a Toronto, Ontario-based technology company developing a commercial insurance workflow management platform, filed an assignment in bankruptcy on April 19. The company was seeking investment financing to strategically grow its business and had identified investors and signed a term sheet. However, the lead investor experienced several delays in closing its round. In order to mitigate its risk, the company engaged in conversations with several potential strategic acquirors. After exploring these possibilities and with no confirmation of its ability to close on the financing and no definitive offers for acquisition, Chisel decided to cease operations to conserve cash. MNP is the bankruptcy trustee. Loopstra Nixon is counsel for the bankruptcy trustee. By Dina Milivojevic

Gateway Market Canada Inc., Tobmar Investments Inc. and Tobmar Investments International Inc.

Gateway Market Canada Inc., Tobmar Investments Inc. and Tobmar Investments International Inc., which jointly operate a franchise system of approximately 150 convenience stores, bakeries and lottery booths across Canada, each filed an NOI on April 19. The majority of the companies’ stores are located in Ontario and operate under the “Gateway Newstands” brand, and most franchisees are owner/operators. The COVID-19 pandemic severely challenged the companies’ viability. Franchisees were forced to close down their locations for prolonged periods of time, and foot traffic remained significantly below pre-pandemic levels when stores were permitted to open. This led to, among other things, a steep decline in sales, a reduction in revenues from supplier payments, and an inability by franchisees to honour their lease obligations. Despite being able to reach and renew a forbearance agreement with TD Bank on several occasions, and despite having reached temporary accommodations with most major creditors, including landlords such as the TTC, the companies were not able to continue operating without fundamentally restructuring their collective affairs and indebtedness. Albert Gelman is the proposal trustee. Counsel is Dale & Lessmann for the companies. By Dina Milivojevic