Normand Excavation, a Hawkesbury, Ontario-based heavy equipment construction company, was placed in receivership on June 14 on application by RBC, owed approximately $470.0M. MNP was appointed receiver. Soloway Wright is counsel to the applicant.
TheRedPin, a Toronto, Ontario-based real estate brokerage, was placed in receivership on June 14. Founded in 2010, the company was seeking to use technology to change the way consumers bought and sold real estate; an online platform consolidated real estate listings, including pre-construction listings, into a single map system for users to search, save and share listings, connect with real estate agents, and facilitate property purchases. Seeking additional capital to fuel growth but wanting to avoid a dilution of their equity, the company's shareholders turned to venture debt. A significant decline in sales in recent months has led to the company failing to meet the minimum rolling 12 month net deal revenue required by its lenders, who have demanded repayment. MNP was appointed receiver and was authorized to conduct a sale process for the company's assets. Chaitons is counsel for the applicant.
Syrion Corporation, a Toronto, Ontario-based research and development company, had its property municipally known as 61 Balmoral Avenue,Toronto, Ontario placed in receivership on June 14 on application by Owemanco Mortgage Holding Corporation, owed approximately $2.2MM. In 2017, Ontario Wealth Management Corporation, a related entity to Owemanco, agreed to fund a construction loan to the company for a three-story single-family dwelling. The loan has been in financial default since May 2018, and the company is unable to continue construction on the property or sell the property as is. Rosen Goldberg was appointed receiver. Counsel is GSNH for the applicant and DJD Law and Morganti & Co. for the company.
Stone Hammer Brewing, a Guelph Ontario-based brewer and beer retailer was adjudged bankrupt on May 30, listing $1.5MM in liabilities. BDO is the bankruptcy trustee. Miller Thomson is counsel to the applicant creditors.
Blutip Power Technologies, a Mississauga, Ontario-based technology company that provided fuel management solutions for operators of high-horsepower diesel engines, filed for bankruptcy on May 30. Richter is the bankruptcy trustee.
Textbook Ross Park, Textbook (774 Bronson Avenue) and McMurray Street Investments, Vaughan, Ontario-based real estate companies, were placed in receivership on May 30 on application by Grant Thornton, the court-appointed trustee of several related entities that were used to raise monies from investors through syndicated mortgage investments. KSV Advisory was appointed receiver. Aird & Berlis is counsel to the applicants.
Mt. Cross Pharmacy, a Hamilton, Ontario-based retail pharmacy, was placed in interim receivership on May 16 on application by CWB Maxium Financial, owed approximately $4.6MM. msi Spergel (ICIN) was appointed interim receiver. On June 14, 2018, the applicant sought and obtained a receivership order appointing msi Spergel (ICIN) as the receiver over the company. The pharmacy's business has been negatively impacted by several developments, including the opening of a competing pharmacy located close to Mt. Cross, as well as the pharmacy's website defaulting to that of the competing pharmacy. Counsel is Pallett Valo for the receiver and Miller Thomson for the applicant.
Reliable Bookbinders, a Scarborough, Ontario-based binding servicing and printing company with a 73-year history, filed for bankruptcy on May 14 and was also placed in receivership on the same day. The company's failure can be attributed to the decline in the printing industry, which has affected trade binderies and resulted in reduced sale volumes and price pressures. PwC was appointed receiver and is the bankruptcy trustee.
Rockport Blocker and Rockport Canada et al. (collectively the "Rockport Group"), subsidiaries of Rockport, a West Newton, Massachusetts-based global designer, distributor and retailer of comfort footwear in more than 50 markets worldwide, brought a motion under the CCAA to recognize in Canada the US Chapter 11 bankruptcy proceedings that the Rockport Group filed on May 14. The company partially blamed the separation from its previous owner, Reebok, which sold the company in 2015, for its financial difficulties. The Rockport Group currently owes approximately $53.4MM (USD) under its revolving credit agreement. If the lenders were to require repayment in full of the amounts owed by Rockport Canada, as a co-borrower and under its guarantee of the US debtors' obligations under the agreement, it would be unable to repay the full amount owed. Rockport Canada itself has 64 unsecured creditors that are owed approximately $760.0MM (CAD). The company has entered into an asset purchase agreement to sell substantially all of its assets to CB Marathon Opco, an affiliate of Charlesbank - a private equity group. To facilitate the cooperation between the US and Canadian Court, Rockport Blocker requested that it be recognized to act as foreign representative. Richter was appointed Information Officer. Canadian counsel is BLG for the Rockport Group, Stikeman Elliot for Richter, Gowling WLG for Charlesbank and Goodmans for the senior secured noteholders.
Splash Canyon Waterpark & Resort, a Minesing, Ontario-based waterpark that formerly included a camping park, was placed in receivership on May 7 on application by Romspen, owed approximately $100.8MM. On May 18, 2017, Kawartha Downs, a related corporation also owned by Harvey Ambrose, was placed in receivership on application by Romspen. Splash Canyon was added as a respondent to that proceeding. The Splash Canyon property, which has been closed for more than 6 years, is currently abandoned; the site has fallen into major disrepair and been subject to extensive vandalism. Rosen Goldberg was appointed receiver. Dickinson Wright is counsel to the applicant.