ClearPier companies placed into receivership as $84 million receivables balance questioned

ClearPier Inc. and six related companies, which operate in digital advertising, specializing in performance app marketing, were placed into receivership on April 23, 2026, on application by Royal Bank of Canada, owed more than $35 million. Five of the companies are Ontario corporations, while Media Quest Group Limited is incorporated in the United Arab Emirates. The companies are related, operate in the same or similar businesses and were managed on a combined basis. Sunil Abraham and Jignesh Shah are identified in the record as their principals.

HSBC Bank Canada originally provided ClearPier with a demand operating facility that was increased to USD $32 million in December 2023, a USD $7 million capital loan and an interest-rate swap facility with a notional limit of USD $7.5 million. RBC succeeded to HSBC’s rights following their amalgamation in March 2024.

The companies also face substantial exposure to Export Development Canada arising from guarantees of financing provided to related company ClearPier Acquisition Corp. As of February 4, 2026, ClearPier and certain of the other entities owed EDC approximately CAD $39.86 million and USD $45.29 million. It is estimated that the companies may have more than 700 unsecured trade creditors.

RBC’s enforcement followed a series of covenant breaches and reporting failures. ClearPier allowed its receivables insurance to lapse from January 31 to May 1, 2025, deposited collections into accounts outside RBC’s control and failed to provide financial reporting when required. Its November 2025 borrowing-base report included uninsured receivables more than 120 days old, producing a USD $5.18 million margin shortfall and an undisclosed overdraft. RBC also said the December 2025 borrowing-base report was delivered nearly 1 month late and that the January 2026 report remained outstanding when its affidavit was affirmed.

On April 1, 2025, ClearPier Acquisition Corp., an company under common control with the same principals, filed for protection under the Companies' Creditors Arrangement Act, demonstrating the broader financial distress affecting entities under the common control of the principals

The lender formally reserved its rights in May 2025 and demanded USD $34.37 million in September, with payment due by October 6. RBC issued its notice of intention to enforce security the next day, and the statutory notice period expired October 17. It nevertheless allowed additional time for a refinancing proposal involving a proposed USD $250 million standby letter of credit from Kelm Industries GMBH.

ClearPier asked RBC to provide a new USD $100 million facility that would refinance existing debt, repay EDC, fund working capital, support the purchase of assets from the ClearPier Acquisition CCAA proceedings and finance another acquisition. RBC rejected the proposal on January 27, 2026, and no repayment plan acceptable to the bank emerged.

Since being appointed, the receiver has reported that management had provided virtually none of the documents requested after an April 27 meeting. The missing materials included current receivable and payable listings, bank statements, recent financial statements and complete employee information. The receiver said the lack of information prevented it from determining whether to take possession of any continuing operations or exercise many of the powers granted by the appointment order. The receiver also reported that management had indicated it intended to continue operating the companies on a business-as-usual basis and remain in control despite the receivership order.

Questions have also emerged concerning the companies’ reported bank statements and receivables. BMO told the receiver that an account number shown on statements provided to RBC belonged to an account in a different name and did not appear associated with any of the companies. The transactions shown on the sample statement did not match the actual account activity, and BMO could not locate selected transactions in its system. BMO had not completed its review when the first report was filed.

The companies reported combined accounts receivable of approximately USD $84 million as of December 31, 2025. The receiver sent collection notices to 86 customers representing USD $78.73 million of that balance. Of the responses received by May 12, 7 customers associated with USD $5.6 million of reported receivables said they owed nothing and had either never dealt with the companies or had not done so for several years. The receiver said those responses, together with BMO’s findings, raised concerns about the legitimacy of the receivables listing supplied by management.

Grant Thornton is the receiver. Counsel includes McMillan for RBC, Norton Rose Fulbright for EDC, and Dickinson Wright for the companies.