Buchh Holding Inc., Britman Specialty Products Inc., Rotalec International Inc. and Rotalec Canada Inc., Receivership

Buchh Holding Inc., Britman Specialty Products Inc., Rotalec International Inc. and Rotalec Canada Inc., a group of businesses ultimately owned by Montreal business man Mr. Farhat Buchh with operations in Quebec, Ontario and Minnesota, were placed in receivership on July 31 on application by TD Bank, owed approximately $3.6 million.

Rotalec Canada is the primary operating company, specializing in the distribution of industrial automation products and customized robotics for numerous industries including aerospace, aluminum, packaging and general manufacturing. Britman Specialty Products specializes in the sale of locking devices to companies in the furniture industry.

Richter was engaged by TD Bank in May and appointed interim receiver on July 19. The comeback hearing for the receivership application was initially scheduled for August 15, but TD Bank brought an emergency application on July 31 due to findings by the interim receiver regarding material overstatements of accounts receivable and inventory, negative net cash flows incurred by the company, a lack of sufficient liquidity to operate the business and the company’s failure to update its books and records on a timely basis, among other reasons.

Richter was appointed receiver.

Counsel is Aird & Berlis for TD Bank and Fasken for the receiver.