Advantage Machine & Tool Inc., Receivership

Advantage Machine & Tool Inc., a Mitchell, Ontario-based manufacturing company, was placed into receivership on July 24 on application by BMO, owed approximately $3.5 million.

Advantage manufactured tools, dies, jigs, and fixtures and provided custom machining, welding, and light services for a number of clients, including automotive, medical and food processing companies.

BMO initially advanced funds to the company in 2022. In June 2024, BMO conducted its annual review of the account and discovered various breaches of the loan agreement, including a failure to prepare financial statements, significant employee source deduction arrears owed to CRA, and a debt service coverage ratio which was significantly in default.

The situation has since deteriorated—the Ministry of Finance has obtained an $80,000 judgment against the company and registered a writ of seizure and sale, and employee source deduction arrears have continued to accrue, now totalling over $2 million.

msi Spergel inc. is the receiver.

Counsel is Chaitons for BMO and Miller Thomson for the receiver.