2706405 Ontario Inc. o/a Dimes Cannabis (“Dimes”), Cannoe Corp. (“Canoe”) and CC Operations ON Corp. (“CC Ops”)

2706405 Ontario Inc. o/a Dimes Cannabis ("Dimes"), Cannoe Corp. ("Canoe") and CC Operations ON Corp. ("CC Ops"), a group of Toronto, Ontario-based cannabis companies, each filed an assignment in bankruptcy on May 2. The group is controlled by its ultimate parent company, Superette Inc. ("Superette"). Superette acquired Cannoe just after Cannoe acquired Dimes in February 2022. Since the acquisition, both the CC Ops and Dimes businesses have experienced a decline in revenue and significant losses. Despite efforts and financial support from Superette to affect an operational turnaround, the businesses continued to experience losses primarily due to lower than expected sales volume as a result of operating in highly saturated markets and significant lease and operating expenses. PwC is the bankruptcy 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

Quality Fertilizers Inc.

Quality Fertilizers Inc., a Shakespeare, Ontario-based producer of agricultural fertilizer, filed an assignment in bankruptcy on April 25. In 2019, it was uncovered that several hundred thousand dollars were stolen in an employee fraud. The fraud resulted in significant arrears owing to suppliers and to CRA for unremitted HST and source deductions. The business was shut down in 2019 and the owner continued trying to pay down the company's debts. Ultimately, however, he was unable to do so and the company made an assignment in bankruptcy. MNP 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

Sungard Availability Services (Canada) Ltd.

Sungard Availability Services (Canada) Ltd. and 11 US-based affiliated companies had their Chapter 11 proceedings recognized under the CCAA on April 13. For approximately 40 years, the companies have established and maintained resilient and recoverable IT environments for myriad businesses, including financial institutions, healthcare, manufacturing, logistics, transportation and general services. Headquartered in Wayne, Pennsylvania, the companies employ approximately 585 employees in the US and Canada. Operational liabilities, including long-term fixed lease costs, have weighed on the companies’ performance and ability to implement its business plan. The companies’ efforts have been further strained by the COVID-19 pandemic, faster than expected declines in demand for legacy products and increased competition for the companies’ more current, cloud-based products. In the weeks leading up to the filing and with the assistance of their advisors, the companies engaged in negotiations with an ad hoc group of term loan lenders over the terms of the restructuring. A&M is the information officer. Counsel is Cassels for the companies, Bennett Jones for A&M as information officer, Norton Rose for certain prepetition lenders; Miller Thomson for PNC Bank; DLA Piper for Landmark Infrastructure Partners; Camelino Galessiere for Orlando Corporation; and Faskens for Digital Toronto Nominee, Inc. By Dina Milivojevic