Altek Industrial Supply Ltd. et al., an Alberta-based master distributor of industrial products, obtained protection under the CCAA on May 24 on application by CIBC, owed over $25 million.

Altek began to face financial difficulties and initially defaulted on its obligations under its credit agreement with CIBC in early 2023. The parties entered into a forbearance agreement, but the forbearance period terminated on March 1, 2024 due to defaults.

In addition, Altek advised CIBC in early May 2024 that its most recent borrowing base certificate had significantly overstated the borrowing base collateral due to non-existent sales transactions being entered into Altek’s system. Altek’s CFO also resigned around this time, and its controller ceased working.

Following a review, PwC, CIBC’s financial advisor determined that Altek’s overstatements resulted in an over advancement of approximately $11.9 million.

PwC is the monitor.

Counsel is Miller Thomson for CIBC.

By: Dina Milivojevic