Alaskan Water Seafood, a Brampton, Ontario-based seafood supplier was placed in receivership on June 24 on application by RBC, owed approximately $1.0MM. In March 2019, the accounts of the company were transferred to RBC's special loans group because its risk profile had deteriorated. RBC expressed concerns about, among other things, improprieties with respect to the completion of borrowing base certificates and late reporting. The company acknowledged its financial difficulties, which it attributed to rising competition, but its attempts to refinance its business and/or attract an equity partner have been unsuccessful and recent information provided to RBC has increased the bank's concerns about the deteriorating financial position of the company. Grant Thornton was appointed receiver. Counsel Minden Gross for the applicant and KMB Law for the company.
Homes By Design, a company developing and constructing a 3 storey, 26 unit residential condominium complex with underground parking in Perth, Ontario, was placed in receivership on June 20, on application by HarbourEdge Mortgage Investment Corporation, owed approximately $28.8MM. The company was unable to repay its loans to HarbourEdge and the Court appointed Fuller Landau as receiver for the purpose of developing and carrying out a marketing and sales process for the property. Counsel is Victor Vandergust Professional Corporation for the applicant and Minden Gross for the receiver.
Holistic Blend, a Mississauga, Ontario-based manufacturer of natural organic pet food and pet health care products, was placed in receivership on June 12 on application by Bridging Income Fund, owed approximately $2.4MM. Despite routinely being unable to fund payroll, rent and production, the company maintained the support of Bridging for several years with promises of significant sales growth. Recently, however, it has become evident that this growth is not materializing, and the latest balance sheets and income statements show that the company is insolvent on a balance sheet and cash flow basis. On May 14, the company advised Bridging that it would stop selling pet food and focus on pet health supplements only. Having lost faith in the company's ability to manage its business, Bridging subsequently demanded repayment. BMO, owed $807.0M by the company, also did so shortly thereafter. KSV was appointed receiver. Counsel is Chaitons for the applicant, MacDonald Sager Manis for the company and Aird & Berlis for the receiver.
Amax Health, a St-Catherines, Ontario-based distributor of medical and dental supplies, was placed in receivership on June 4 on application by CIBC. RSM was appointed receiver. Scarfone Hawkins is counsel for the applicant.
6910 HWY7 Inc., a company which owns the real property known as 6910 and 6950 Hwy No. 7 East in Markham, Ontario, was placed in receivership on June 4 on application by Am-Stat Corporation, owed approximately $24.4MM. The property consist of two vacant parcels of land adjacent to the Markham Stouffville Hospital. The land is intended as the site of a future residential and commercial development. Rosen Goldberg was appointed receiver and is tasked with realizing on the property through a formal marketing and sale process. Counsel is Dickinson Wright for the applicant and Teplitsky, Colson LLP for the company.
Intercity Broadcasting Network, a Toronto, Ontario-based company that operates the G98.7 radio station, was placed in investigative receivership on June 3 on application by Jamrock Broadcasting and Delford Blythe. Officially launched in 2011 by Fitzroy Gordon, the radio station focused on programming for the Caribbean-African community in the Greater Toronto Area. Blythe, a minority stakeholder and former senior executive of the station, brought an application in 2016 for relief from corporate oppression after he was stripped of his management roles after discovering what he alleges was financial mismanagement of the station by Gordon. Blythe alleges that Gordon was, among other things, directing revenue from online web advertisements to himself personally. The matter was adjourned sine die after Gordon suffered a stroke in 2017. Following Gordon's death in April 2019, Blythe learned that the radio station is in the midst of a serious financial crisis and is in danger of losing its radio license for failing to pay required CRTC obligations. The receivership will bring stability to the situation as the station charts its way forward. Farber was appointed investigative receiver. Carlson & Kociper is counsel for the applicants.
OrbCare, a Toronto, Ontario-based technology company that operates a cloud-based SaaS platform for healthcare professionals, filed an NOI on May 27, listing $927.4M in liabilities, including $775.0M to CRA. Founded in 2013, the company has developed software that merges the information doctors use and patients provide from a host of systems in order to streamline clinic operations and patient care. The filing comes less than 3 months after the company announced the completion of a $2.0MM seed financing round led by iGan Partners. MNP is the proposal trustee.
Hollander Sleep Products, a leading North American mattress and pillow manufacturer, obtained Canadian recognition of its US Chapter 11 proceedings on May 23. Based in Boca Raton, Florida, Hollander has 13 manufacturing facilities in the US and Canada and 2,370 employees across North America. It produces bedding products for well known license brands including Ralph Lauren, Simmons, Beautyrest, Nautica and Calvin Klein, in addition to manufacturing products under its own brands. Despite a healthy and growing sleep industry, the company cites several factors for its recent financial struggles, including a dramatic increase in the price of materials such as fiber, down and feathers and integration costs associated with the acquisition of a major competitor in June 2017. In Canada, the company maintains manufacturing facilities in Montreal, Quebec and in Toronto, Ontario, where it also has a sales office. KSV was appointed Information Officer. Canadian counsel is Osler for the applicant, Norton Rose for the Information Officer, Goodmans for the ABL lenders and Blakes for the term loan lenders.
Cross Country Installation & Service, a Toronto, Ontario-based equipment installation and project management company, which provides its installation services to communities all across Canada, filed for bankruptcy on May 8. PwC is the bankruptcy trustee.
189 Dundas Street West, owner of the property municipally known as 189 Dundas Street West in Mississauga, Ontario, had its property placed in receivership on May 3 on application by West End Motors and Trailer Park Limited (collectively "WEM"). WEM sold the property to 189 in February 2017 for $12.1MM, a sale partially financed by a $9.0MM vendor-take-back mortgage. A second mortgage of approximately $5.7MM was registered over the property on the same date, with those proceeds intended to finance both the purchase of the property and soft costs to be incurred prior to the construction financing of the condominium project. 189, which the applicants allege appears to be connected to Fortress Real Developments, began missing payments on the VTB mortgage in March 2018 and a demand for repayment was made shortly thereafter. The second mortgagees made payments against the first mortgage in order to protect their position but ultimately, after several delays and over the objections the second mortgagees, a receivership order was granted. Rosen Goldberg was appointed receiver. Counsel is Blaney McMurtry for the applicant, Laishley Reed for the company, Dickinson Wright for the receiver and Corsianos Lee for the second mortgagees.