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.
2507448 Ontario, a Toronto, Ontario-based company had its property municipally known as 581 Wellington Street West in Toronto, Ontario placed in receivership on May 3 on application by First Source Financial Management, owed approximately $3.5MM. The property is currently under construction, although construction has stalled since approximately July 2018 due to the company's inability to obtain additional financing; a second and third mortgage, together totaling approximately $2.8MM, are also registered against the property. The company's principal, Del Terrelonge, advises that he requires an additional $600.0M in further financing in order to complete his intended construction project. RSM was appointed receiver. Counsel is Paliare Roland Rosenberg Rothstein for the applicant and Torkin Manes for the receiver.
2504121 Ontario Inc., doing business as The Anne Boleyn, a British-style pub in Toronto, Ontario, filed for bankruptcy on April 18, listing $980.9M in liabilities. The pub had only been open since August 2017. BDO is the bankruptcy trustee.
Ventana Windows & Doors Inc., a Toronto, Ontario-based vinyl window and door manufacturer, was placed in receivership on April 25 on application by RBC. BDO was appointed receiver. Aird & Berlis is counsel for for the applicant.
Best Made Toys International, a Toronto, Ontario-based manufacturer of plush toys for the wholesale market, was placed in receivership on April 23 on application by BMO, owed approximately $30.1MM. Founded in 1952, the company supplied products to major North American retailers such as Walmart, Target and Kroger but recently had been unable to meet customer demand due to manufacturing and supply chain disruption, which led to widespread order cancellations, penalties, large accounts receivable write-offs and lost future business. A sales process was conducted in March but failed to generate any bids for the business. Deloitte was appointed receiver. Counsel is BLG for the applicant and Goodmans for the company.
Scholary Book Services, a Toronto, Ontario-based book distributor, filed for bankruptcy on April 18, listing $241.3M in liabilities. Founded in 1980, the company was the exclusive Canadian distributor for over 40 US and UK university presses, providing full-service sales, marketing and order fulfillment in Canada for its publishers. SLF is the bankruptcy trustee.
Student Federation of the University of Ottawa, the former official students' union representing undergraduate students of the University of Ottawa, was placed in receivership on April 15 by its own application. Formed in 1969, the federation uses fees collected from the approximately 36,000 undergraduate students to operate various businesses, service centers and social programming for the benefit of its members and other individuals frequenting the university campus. In September 2018, the university terminated its agreement with the federation as a result of allegations of financial mismanagement. A referendum was subsequently held in February 2019 and students voted for a new student union to represent them. With no role to fill on campus, the federation applied for a receiver to develop and then implement an action plan to affect a legal and operational unwinding of the federation. PwC was appointed receiver. Counsel is Dabrowski Joseph for the applicant and Dentons for the receiver.
Harry Chung Enterprises Inc., a Toronto, Ontario-based company that operated an Aroma Espresso Bar franchise from premises located at 1864 Queen Street East, Toronto, filed for bankruptcy on April 9. Spergel (GRIP) is the bankruptcy trustee.
Mundo Media, a Richmond Hill, Ontario-based advertising technology company that offers mobile marketing expertise to its customers, was placed in receivership on April 9 on application by RBC, owed approximately CAD $43.6MM and USD $25.7MM. Employing approximately 45 employees across Canada, the US and Luxembourg, the company has been experiencing declining revenue in the past year as result of, among other things, increasing scrutiny on the online advertising industry and Facebook's deletion of over 1.5 billion fake accounts, which has reduced the activity that leads to revenue generation for the company. RBC provided time for the company to find a solution to its liquidity constraints, but after months of effort, the company's best option was a letter of intent for the sale of the business which would see the bank incur a significant shortfall. EY was appointed receiver. Counsel is TGF for the applicant and Norton Rose Fulbright for the company.