Telemus Systems Inc., a Kanata, Ontario-based company that specializes in the design, development, and manufacturing of Intelligence, Surveillance and Reconnaissance (ISR) and counter measure systems and suites for operational support in the international market, filed for bankruptcy on August 24, listing approximately $638.6 thousand in liabilities, including $120.9 thousand to CM Computer and $330.1 thousand to various employees. KPMG is the bankruptcy trustee.
Artex Systems Inc., a Concord, Ontario-based manufacturer of architectural precast wall panels for buildings primarily in the United States, including large-scale condominiums and public use buildings, filed an NOI on September 1, listing approximately $1.4 million in liabilities. The company experienced severe cash flow problems arising from deteriorating market conditions, as well as a confluence of cash demands on several concurrent projects. As a result, the company fell behind on its payments to creditors, government payroll remittances, as well as its obligations to TD, its primary secured lender. The company's sole project at this time is in Manhattan. The company has projected that if it completes this project and can collect outstanding holdbacks from other jobs, it will have sufficient funds to fully repay the outstanding priority source deduction obligations, its indebtedness to TD, as well as repay a significant portion of its unsecured debt. Spergel (GRIP) is the proposal trustee. Weisz Fell Kour is counsel for the company.
OAN Canada Inc., a Toronto, Ontario-based company, filed for bankruptcy on September 1. Albert Gelman is the bankruptcy trustee.
The Mustard Seed Co-operative Grocery Inc., a Hamilton, Ontario-based member-owned, not-for-profit grocery store that focuses on locally-grown produce, filed for bankruptcy on August 30, listing approximately $64.9 thousand in assets and $416.1 thousand in liabilities. Due to declining sales, the co-op has been unable to pay its food suppliers in a timely fashion. Prior to the bankruptcy, the co-op asked its members to give $400 each to pay off the amounts it owes to suppliers, but the process was unsuccessful. BDO is the bankruptcy trustee.
Nimbus Water Systems Inc., along with several related companies (collectively, the "Nimbus Group"), were placed in receivership on August 23 on application by National Bank (the "Bank"), owed approximately $11.7 million. The Nimbus Group is a Canadian privately owned and operated group of companies located in North York, Ontario, that provides sales, installation, and service of water treatment systems for residential, commercial, and industrial clients across Canada. By letters dated October 2020, November 2020, and April 2021, the Bank advised the Nimbus Group of their obligations after they defaulted on various obligations to the Bank. In April, the Nimbus Group entered into a forbearance agreement whereby the Bank agreed to forbear from enforcing its rights and remedies until June 30. Pursuant to the terms of the forbearance agreement, the parties consented to the appointment of BDO as the Bank's consultant to review the operations and financial position of the Nimbus Group. Currently, the forbearance agreement is at an end and the Bank has been continuing to support the Nimbus Group in the face of ongoing defaults. BDO was appointed receiver. Counsel is TGF for the Bank, Capo Sgro for the Nimbus Group and Chaitons for JLHD Investments Inc., a PPSA registrant.
Mississauga Metals & Alloy, a Brantford, Ontario-based recycler/seller of metals, was deemed to have made an assignment in bankruptcy on August 20, listing approximately $31.1 million in liabilities, including $15.9 million to BNS and $812 thousand to EDC. The company attributes its financial difficulties to several factors, including (i) a catastrophic fire at the company's premises which caused significant damage to its manufacturing facility; (ii) difficulties in collecting receivables due to customer disputes regarding product quality; (iii) significant costs associated with the management and disposal of certain waste nuclear materials stored by the company; and (iv) the negative impact of the COVID-19 pandemic on the company's business operations. As a result of these issues, the company has been dependent on capital injections from the company's shareholders to fund operations. In July, the company filed an NOI so that it could pursue restructuring plans; however, the company ultimately failed to present a proposal to its creditors and was deemed to have made an assignment in bankruptcy on August 20. Richter is the bankruptcy trustee.
Skyline 2 Productions Inc., an Ontario and BC-based film production company that produced the series "Ed Quinn Vs.", was placed in interim receivership on August 17 on application by The Forest Road Company ("FRC"), owed aaproximately $1.4 million (USD) pursuant to a loan which is secured by both a GSA and the assignment of certain tax credits. FRC had agreed to advance the loan on the basis that the company was entitled to and would receive tax credits from the British Columbia Production Services Tax Credit and Canadian Federal Production Services Tax Credit. In accordance with the terms of the loan, the company assigned the tax credits and their proceeds to FRC. The loan has now come due and the company has failed to repay the loan. Furthermore, despite the fact that the tax credits and their proceeds were assigned to FRC, the company has failed to provide any information regarding the status of the tax credit proceeds to FRC. As a result of the company's various breaches and defaults under the terms of the loan and the lack of cooperation from its management, FRC has lost trust and confidence in the company. MNP was appointed interim receiver. Miller Thomson is counsel to the applicant.
Metropolitan Ice Cream Inc., a Toronto, Ontario-based manufacturer of all natural ice creams and fresh fruit ices for Toronto restaurants, hotels, and retailers, filed for bankruptcy on August 10, listing approximately $159.4 thousand in liabilities, including $103 thousand to TD. Dodick Landau is the bankruptcy trustee.
Stratford Petroleum Inc., a Stratford, Ontario-based company that owns and operates an Ultramar gas station and related convenience store in Stratford, was placed in receivership on July 9 on application by BMO, owed over $2.5 million. BMO, which provided a real estate financing loan to the company, began to have concerns in January 2021 when the company missed a payment. The company's financial results were also a concern with gas volumes down 60% from projections and convenience store sales down 70%. After BMO learned that the gas station was under a conditional agreement of purchase and sale ("SPA"), BMO demanded repayment for all amounts outstanding from the company. However, the SPA did not close on the expected date and the company's principals advised BMO that the sale process was "stuck" because the company's gas supplier refused to waive a right of first refusal in connection with the business. At present, there is no closing date and the loan has been in default for six months. Rosen Goldberg was appointed receiver. Chaitons is counsel to BMO.
Victoria Avenue North Holdings Inc., the legal owner of two medical office buildings in Hamilton, Ontario, had a receiver appointed over its assets on August 3, on application by American General Life Insurance Company and the National Union Fire Insurance Company of Pittsburgh, PA (collectively, the "Applicants"). On March 30, 2015, the Applicants advanced a loan to the company in the principal amount of $24.5 million to fund the purchase of the medical office buildings. As at June 30, 2021, the total amount of principal and interest outstanding on the loan was approximately $22.9 million. The company has failed to make a regularly scheduled payment under the loan since March 2020. KPMG was appointed receiver. Counsel is Blakes for the Applicants, Norton Rose for the receiver and Weisz Fell Kour for the company.