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.
Groupe Traiteur, a Cowansville, Quebec-based catering company, filed an NOI on May 15, listing $893.4M in liabilities. MNP is the proposal trustee.
BioAmber Sarnia and BioAmber Canada, the subsidiaries of BioAmber (TSX:BIOA), a Montreal, Quebec-based sustainable chemicals company, filed NOIs on May 4, while the parent company filed for US Chapter 11 bankruptcy. Given that Sarnia-Lambton's economy traditionally centres around petro-chemical and refining companies, BioAmber was a pioneer in the city's push for more economic diversification. At its plant in Sarnia, which attracted approximately $52.0MM in federal and provincial funding, the company used corn syrup to make a chemical used in products ranging from paints and plastics to cosmetics and food additives. These filings will effectively impose an automatic stay of proceedings that will protect the Canadian subsidiaries and their assets from creditor claims during restructuring. PwC is the proposal trustee.
Direction Nord-Sud, a Montreal, Quebec-based logistics company, was placed in interim receivership on April 27 on application by Third Eye Capital (TEC), owed approximately $6.4MM. Since 2015, numerous events of default occurred and continue to occur under the loan agreement. TEC held off enforcing its security while the company, with the assistance of Richter, ran its own informal sales process. No transaction transpired however, nor was the company able to refinance with a different lender when the loan matured in June 2017. In 2017 and through 2018, TEC discovered a number of alleged fraudulent and suspicious activities, including the overstatement of revenue and accounts receivable and the depositing of certain receipts into a related company's bank account. On April 16, without consulting TEC, the company filed an NOI, with BLT Lapointe & Associés acting as trustee. Concerned about the dishonesty, lack of transparency, and deviousness of the company's principals, and fearing a deterioration of its security, TEC applied for an interim receivership order. KPMG was appointed interim receiver and was authorized to commence an accelerated sales process for the company's assets. Counsel is Fishman Flanz Meland Paquin for the applicant.
6998674 Canada, a Rouyn-Noranda, Quebec-based company, filed for bankruptcy on April 27, listing $67.6M in liabilities, including $30.0M to CRA. Raymond Chabot is the bankruptcy trustee.
Taylor Steel and Stainless, a Boucherville, Quebec-based company that specializes in welding and metal manufacturing, filed for bankruptcy on April 10, listing $227.4M in liabilities, including $103.7M to Revenue Quebec. MNP is the bankruptcy trustee.