Blue Lobster Capital Limited, a Nova Scotia-based real estate investment company, and 3284906 Nova Scotia Limited, 3343533 Nova Scotia Limited, and 4318682 Nova Scotia Limited, which operate businesses related to the manufacturing and sale of alcoholic beverages, obtained CCAA protection on December 13.
The companies operate a winery under the name “Lost Bell Winery” and produce and sell cider under the name “Annapolis Cider Co” and certain other alcoholic beverages under the name “Nova Scotia Spirit Co”.
The companies have achieved significant success but began experiencing cash flow pressures in 2023. This was attributable to a combination of factors including growth pains associated with their rapid expansion, COVID-19 related impacts on their supply chain, inflation conditions and interest rate increases. The companies then also had their Chief Financial Officer suddenly go off on indefinite long-term leave due to injury in November 2023.
At present, the companies’ assets exceed their liabilities, but future-looking projections indicate that an upward trend in growth and revenue will continue. As such, the companies’ prospects of remaining operational following a strategic reorganization appear high.
RBC, owed approximately $6.3 million, had brought a competing receivership application, but the companies’ CCAA application was ultimately successful. The purpose of the CCAA proceedings is to conduct a SISP, including an initial phase for lenders to refinance the RBC debt.
KSV is the monitor.
Counsel is O'Keefe Sullivan and Burchell Wickwire Bryson (local counsel) for the companies, Stewart McKelvey for RBC, Mclnnes Cooper for BNS, Eidinger & Associates for Penske Truck Leasing Canada, Cox & Palmer for Toyota Credit Canada, O’Blenis Law for L. Burge Services, Miller Thompson for Shell Canada Products, Atlantica Law Group for Saint-Famille Wines, and Patterson Law for Kevin Rice et al.
