SM Group, a Montreal, Quebec-based group of construction and engineering companies, obtained protection under the CCAA on August 24. Founded in 1972, the company has grown to employ over 1,100 workers and operates in over 35 countries. In recent years, however, it has suffered significant losses, due largely to several unprofitable contracts. In July 2017, the company engaged Deloitte as a financial advisor. On several occasions, Deloitte recommended that the company should, in light of its financial situation and liquidity issues, enter into an operational and financial restructuring. These recommendations were ignored by the company, which was more focused on the long-term perspective of total revenues vs. the profitability of contracts and its short-term critical issues. On August 22, 2018, Deloitte was made aware that the company was filing a motion to initiate proceedings under the CCAA, Despite its role with the company, Deloitte was never consulted with respect to the proposed CCAA restructuring plan. PwC was proposed to be the monitor. The company's main secured lenders, Alaris Royalty (“Alaris”) and Integrated Private Debt Fund V (“IPDF”), respectively owed $93.7MM and $25.8MM, were also not consulted. Alaris and IPDF (the "Applicants") immediately filed a joint application seeking the establishment of an alternative restructuring plan under the CCAA, arguing that the company's filing was in direct violation of the company's contractual obligations and was not made in good faith. The Applicants further allege that the company's proposed restructuring does not benefit the company's most important stakeholders but appears solely to serve the interests of the company's largest shareholder and former president, Bernard Poulin, who, according to the company, was removed from management following allegations of corruption. The court granted the Applicants their requested initial order and Deloitte was appointed monitor. LGBM was appointed Chief Restructuring Officer for the company. Counsel is McCarthy Tétrault for Alaris, Miller Thomson for IPDF, Blakes for the company and Stikeman Elliott for Deloitte. Integrated Asset Management is providing interim financing during the proceedings.
Athanasios Kouremenos Pharmacien, a Montreal, Quebec-based pharmacy, was placed in receivership on August 9 on application by National Bank, owed approximately $2.0MM. In February, Athanasios Kourmenos testified before the disciplinary council of the Quebec Order of Pharmacists, where he plead guilty to 44 charges, including receiving rebates and making illegal claims. PwC was appointed receiver. McCarthy Tétrault is counsel to the applicant.
Charcuterie Parisienne, a Montreal, Quebec-based charcuterie maker, filed an NOI on August 6, listing $748.3M in liabilities. In 2016, the company recalled four of its cured meat products due to a possible listeria contamination, and in December 2017, the Canadian Food Inspection Agency suspended the company's operating license. KPMG is the proposal trustee.
Campagna, a Boucherville, Quebec-based automotive company renowned for its revolutionary three-wheel side by side vehicles, filed an NOI on August 3, listing $7.6MM in liabilities, including $2.2MM to National Bank. Campagna's founder is former Formula 1 racer, Daniel Campagna, who devoted more than eight years to create the company's first vehicle, the T-Rex, which was introduced at the 1994 edition of the Montreal Auto Show. PwC was appointed proposal trustee.
10148369 Canada, a Gatineau, Quebec-based company, filed for bankruptcy on August 2, listing $191.4M in liabilities, with majority of that amount owing to Scotiabank. Raymond Chabot is the bankruptcy trustee.
Vacances Sinorama, a Montreal, Quebec-based tour agency that sells bus tours and low-cost tours of Asian countries, had a provisional administrator appointed over its business on July 24 in a decision rendered by the Office de la protection du consommateur ("OPC"). The OPC took this initiative following the company's failure to comply with the requirements of the Travel Agents Act in connection with the the way it handled clients' payments. The OPC plans to withdraw the company's travel agent permit. The company's parent company, Sinorama Corporation, which is headquartered in Florida, reported a net loss of $2.8MM (USD) in the quarter ending in March 2018. PwC was appointed provisional administrator.
6974406 Canada, a Brownsburg-Chatham, Quebec-based company filed for bankruptcy on June 26, listing approximately $1.1MM in liabilities. Raymond Chabot is the bankruptcy trustee.
Outaouais Rock, the company that operated the annual Montebello Rockfest in Montebello, Quebec, filed an NOI on June 21. The music festival was founded in 2005 by a then 17-year-old local resident who grew tired of having to travel to bigger cities to attend concerts and events. The festival grew each year and in recent years has featured international acts such as Korn, Alexisonfire and Stone Temple Pilots, drawing over 200,000 people to the small village. The 2018 event just wrapped up on June 16, but the company does not have sufficient funds to fully repay workers, including artists and technicians. KPMG was appointed proposal trustee.
Greatex Mills, a Montreal, Quebec-based manufacturer and distributor of home furnishing fabrics, filed an NOI on June 13. Richter is the proposal trustee.
BioAmber Sarnia and BioAmber Canada, the subsidiaries of BioAmber (TSX:BIOA), a Montreal, Quebec-based sustainable chemicals company, filed for protection under the CCAA on May 24, having previously filed NOIs on May 4. The company has listed $63.2MM in liabilities, including $10.0MM to BDC Capital and $10.0MM to Comerica Bank, Export Development Canada and Farm Credit Canada, collectively. PwC was appointed monitor. Counsel is Blakes for the companies, BLG for the monitor, TGF and Lavery for BDC Capital and McMillan for Comerica Bank.