L'Univers du Modulaire Inc., a Sherbrooke, Quebec-based general contractor filed an NOI on July 12, listing approximately $6.7 million in liabilities, including $3.9 million to the Business Development Bank of Canada. Among other services, the company provides general contracting services in connection with the construction of modular houses and complexes. MNP is the proposal trustee.
Bel-Habitat Inc. and Bel-Habitat 2 Inc., Laval, Quebec-based construction companies, filed for bankruptcy on June 28, respectively listing $26.0 million and $14.7 million in liabilities. Bel-Habitat Inc. owes $1.5 million to the Bank of Canada and Bel-Habitat 2 Inc. owes $5 million to Gestion Yves Carbonneau et fils Inc. and $5 million to Stratégie S.I.M.A Inc. Raymond Chabot is the bankruptcy trustee.
Réseau Dentaire Inc., a Montreal, Quebec-based dental company, filed an NOI on June 17, listing approximately $9.5 million in liabilities, including $9.1 million to Desjardins. MNP is the proposal trustee.
Nautilus Plus Inc., a Longueuil, Quebec-based company which operates a leading chain of corporately-owned fitness centres in Quebec, filed an NOI on June 14, listing approximately $42 million in liabilities, including approximately $28.4 million to BMO and $8.3 million to the Caisse de dépôt. Raymond Chabot is the proposal trustee.
MetalsTech Terre des Montagnes Lithium Inc. and MetalsTech Wells-Lacourciere Lithium Inc., Montreal, Quebec-based lithium exploration companies, filed for bankruptcy on May 20, respectively owing approximately $1.9 million and $492.2 thousand to MetalsTech Limited, an Australian headquartered company that controls a developing portfolio of early stage, hard-rock exploration projects in Quebec. MetalsTech Project Generation Lithium Inc. and MetalsTech Kapiwak Lithium Inc. filed for bankruptcy on May 21, respectively owing approximately $327.5 thousand and $12.7 thousand to MetalsTech Limited. PwC is the bankruptcy trustee for each of the bankruptcy proceedings.
BioÉnergie AE Côte-Nord Canada Inc., which is a joint venture founded in 2012 between Biogaz SP S.E.N.C. and Ensyn BioEnergy Canada Inc. for the construction and operation of a biofuel factory in Port-Cartier, Quebec, obtained protection under the CCAA on May 5. Construction of the factory has been negatively affected by several delays and cost overruns. While most of the construction of the factory is now completed, it still does not have the capacity to produce biofuel in the volumes and level of quality provided for in various contracts. As a result of these operational issues, there is ongoing litigation between certain parties regarding who should pay for the costs of rectifying the defects that are preventing the plant from operating as intended. Raymond Chabot was appointed monitor. Counsel is Miller Thomson for the BioÉnergie AE Côte-Nord Canada Inc., Woods for Biogaz SP S.E.N.C., and BLG for Ensyn BioEnergy Canada Inc.
Société en commandite Industriel-Léger ("SEC"), a limited partnership set up for the purpose of managing and operating real estate holdings located in Magog and Sherbrooke, Quebec — along with its general partner, 9058-0150 Québec Inc. — were placed in receivership on March 26 on application by FWCU Capital Corp. ("FW Capital"), owed approximately $12.4 million. In July 2016, FW Capital entered into a loan agreement with Kanwal Inc. ("Kanwal") on the condition that SEC guarantee the obligations and liabilities of Kanwal. As a result of various defaults by Kanwal under this loan agreement, FW Capital demanded payment of Kanwal's indebtedness from SEC. FW Capital, which has not received any payments since 2018, alleges that Kanwal and SEC consistently pursued refinancing with a third party, Waygar Capital, despite being aware that it was objected to by FW Capital. MNP was appointed receiver. Counsel is Robinson Sheppard Shapiro for FW Capital and Fishman Flanz Meland Paquin for the receiver.
193069 Canada Inc., a Montreal, Quebec-based company in the business of designing, importing and supplying unique fabrics printed on various materials to North American clothing manufacturers, filed an NOI on March 23, listing approximately $7.9 million in liabilities, including $3.6 million to Fabtrends International Holdings Inc. and $1.0 million to Fabtrends USA Corp. Prior to the COVID-19 pandemic, several large retailers of women's dresses had closed or downsized considerably, including Dress Barn and Sears. These retailers represented a significant portion of the company's business and it was unable to recover these lost sales. Moreover, the pandemic led to a sharp decrease in the demand for women's dresses and formalwear. For the year ended June 30, 2020, sales were 27% lower as compared to the prior year. Although the company implemented various cost reduction initiatives, the costs savings were insufficient to offset the impact of the lower sales volume. On March 26, the Court also authorized a sale and solicitation process for the company's business and related assets. PwC is the proposal trustee. Kugler Kandestin is counsel for the company.
Change of Scandinavia Canada Retail Inc., a Montreal, Quebec-based privately-held retailer which currently operates 26 stores across Canada under the name CHANGE Lingerie (the "Brand"), filed an NOI on March 2, listing approximately $4.1 million in liabilities, including $2.0 million to RBC. The Brand was founded in 2006 in Denmark and has over 200 stores worldwide. This NOI only pertains to the Canadian entity. Given the COVID-19 environment and impact on the retail sector, the company has suffered significant losses and a major reduction in sales. The company is currently looking to restructure its operations, which may include the closure of certain points of sale. Richter is the proposal trustee. Counsel is Kugler Kandestin for the company and Norton Rose Fulbright for the proposal trustee.
Atis Group, a group of window and door manufacturers whose products were sold under various brands including Laflamme, Vinylbilt, Solarcan, Vimat, Supervision, Melco, Allsco, and Altek, filed for protection under the CCAA on February 19. As of December 31, 2020, Atis Group operated seven manufacturing plants, had 26 stores located across Canada, and generated revenues of over $115.0 million. Between the time of its creation in 2004 and 2017, Atis Group achieved growth through more than 20 acquisitions. However, certain past acquisitions had resulted in a significant decrease in revenues. In particular, two of these companies — Solarcan Architectural and Allied Doors and Windows — were ultimately shut down, while another company was sold at a very low price. In 2018, costs began to increase significantly due to higher prices of glass and an increase in the rejection rate caused by aging manufacturing equipment. Moreover, the Ontario plant, which used to be very profitable, suffered a rapid decrease in sales starting in 2019 when several major clients were lost to a new competitor. Finally, once sites reopened after quarantine measures were lifted, Atis Group was unable to hire foreign workers as it had historically done. As a result of these factors, Atis Group suffered a loss of more than $24.0 million as of 2020. Without a capital injection, Atis Group currently does not have sufficient resources or the ability to generate sufficient funds to pay its suppliers and creditors. During these CCAA proceedings, Scotiabank — Atis Group's current first-ranking secured lender — will be providing up to $6.3 million in interim financing. Raymond Chabot was appointed monitor. Richter is advisor to Scotiabank. Counsel is Fasken for the monitor, McCarthy Tétrault for the debtors, BLG for Scotiabank and Gowling WLG for Investissement Quebec.