Warehouse Brewing Company Inc., which operated a craft brewery in Regina, Saskatchewan, filed an assignment in bankruptcy on December 1, listing approximately $3.3 million in liabilities. The company was not able to sustain a profitable business model and the various investors did not want to advance further funding to sustain the operations. The company’s directors explored options for external investment and to sell the business as a going concern, but none of these preliminary discussions materialized into a deal that would allow the company to continue its operations. MNP is the bankruptcy trustee. By Dina Milivojevic
Under the Sun Groweries Inc., a Saskatoon, Saskatchewan-based cannabis company, filed an NOI on August 15, listing approximately $7.5 million in liabilities, including approximately $4.8 million to 101214535 Saskatchewan Ltd. Grant Thornton is the proposal trustee. By Dina Milivojevic
Epic Alliance Real Estate Inc., a Saskatoon, Saskatchewan-based real estate company, was placed into bankruptcy on August 4. EY was previously appointed as inspector of the company and certain related entities (the "EA Group") on February 25 on application by various investors to investigate what happened to the $211.9 million in investor funds raised by the EA Group. The inspector reported that, among other things, investors may never know exactly what happened to the money raised, in part because the company's books were unaudited and incomplete and two of three computer servers that stored the electronic records had been wiped clean. EY is the bankruptcy trustee. Counsel is MLT Aikins for the inspector. By Dina Milivojevic
Petrolama Energy Canada Inc., which operates a crude oil and natural gas liquids marketing and trading business, filed an NOI on July 27, listing approximately $15 million in unsecured liabilities. The company currently has no bank debt and no secured creditors. In 2013, the company constructed and operated a crude oil blending terminal in Alida, Saskatchewan, and peaked with annual revenues of over $900,000,000 in 2014. In July 2016, the company sold the majority of its commercial assets to Secure Energy Services Inc. where most of its employees also went. The company then focused on moving Canadian crude oil and propane and selling it into the United States. Since then, a number of factors have led to the company’s insolvency. They include the loss of bank financing, the delay in completion of facilities, a regulatory rejection of a project, the high cost of crude oil storage under long term contracts, and the 2020 market crash of the price of crude oil and its subsequent volatility. A&M is the proposal trustee. Counsel is Blakes for the proposal trustee, Jensen Shawa Solomon Duguid Hawkes for the company, MLT Aikins for Keyera Energy Inc. and DLA Piper for OdysseyNRG Ltd. By Dina Milivojevic
Just Solutions Inc., a Moose Jaw, Saskatchewan-based insurance broker engaged in the business of selling crop and hail insurance to farmers throughout western Canada, filed an NOI on April 18. There was a dramatic increase in claims made by insureds in the agricultural sector in 2021. The company is solely a broker of the crop insurance policies and does not have any liability to insureds in the event of a claim. However, in early 2022, due to the losses on insurance policies occurring in the previous growing season, it became apparent that it was going to be very difficult for the company to obtain rights to bind insurance companies for the 2022 growing season on terms similar to previous years. As a result, the company faced the risk of ceasing to be able to function as a going concern. A SISP, including a stalking horse bid by Forage Subordinated Debt Limited Partnership II, were approved on April 22. A&M is the proposal trustee. Counsel is McCarthy Tétrault for the company. By Dina Milivojevic
EY has issued its first report in its capacity as inspector of Epic Alliance Inc. and certain related entities (the “EA Group”), a Saskatoon, Saskatchewan-based group of companies that facilitated the buying, selling, renting, subletting, and renovating of residential real estate. EY was appointed on February 25 on application by various investors to investigate what happened to the $211.9 million in investor funds raised by the EA Group. Based on the information currently available (which is unaudited and incomplete), the inspector reported that, among other things, the group frequently experienced cash shortfalls on its Hassle-Free-Landlord Program properties due primarily to low occupancy rates and high repairs and maintenance costs. The company was planning to expand its program into the United States, but these plans appear not to have materialized, with EY reporting that the $3.8 million raised for the expansion appearing to have been used to fund losses in the Canadian corporations. The inspector also confirmed that the EA Group raised $370,000 from four investors in contravention of a cease trade order in 2021. Counsel is MLT Aikins for the inspector. By Dina Milivojevic
Cura-Can Health Corp. and its wholly-owned subsidiary, The Clinic Network Canada Inc., were placed in receivership on February 7 on application by Avonlea-Drewery Holdings Inc., owed approximately $16.4 million. The companies hold investments in medical cannabis clinics operating in Alberta, Saskatchewan, Manitoba, and Ontario, and currently have no active operations. KPMG was appointed receiver. Counsel is Dentons for the companies, Aird & Berlis for the applicant and Cassels for the receiver. By Dina Milivojevic
Norman Prior Nodwell, who operates a mixed farming operation near Biggar, Saskatchewan, had an interim receiver appointed over all of his livestock, forage and feed on October 14, on application by BMO, owed approximately $2.2 million. On September 29, the Animal Protection Services Branch of the Government of Saskatchewan issued a Corrective Action Order against Mr. Nodwell, requiring him to provide his livestock with supplemental feed to improve the livestock's body condition and to humanely euthanize or provide veterinary care to distressed animals. On October 6, an agent of BMO inspected the farm and discovered that the bison are in poor condition, Mr. Nodwell had recently euthanized a number of bison, Mr. Nodwell does not maintain an inventory of his cattle and bison, Mr. Nodwell's bison are unmarked and unidentifiable and Mr. Nodwell's pastures are in extremely poor condition. Deloitte was appointed interim receiver. Counsel is MLT Aikins for BMO and Cuelenaere LLP for Mr. Nodwell.
Natural Health Services Ltd., which operated medical clinics that specialized in dispensing cannabinoids across Alberta, Saskatchewan, Manitoba, and Ontario, filed for bankruptcy on August 6. KPMG is the bankruptcy trustee. Counsel is Dentons for the company and Torys for the trustee.
Duck Mountain Environmental Ltd., a Kamsack, Saskatchewan based Hydrovac excavation and potable water/septic service company, filed an NOI on May 31, listing approximately $1.9 million in liabilities. The Bowra Group is the proposal trustee.