Collision Kings Group Inc. et al., CCAA

Collision Kings Group Inc. et al., a Winnipeg, Manitoba-based group of companies that own and operate several autobody collision repair shops and autobody mechanic shops, with primary operation in Alberta, obtained CCAA protection on February 7.

The companies employ approximately 120 people and list approximately $27.2 million in liabilities, including approximately $12.9 million to TD Bank.

Their financial difficulties were caused by, among other factors, a higher debt load during the COVID-19 pandemic due to a previous acquisition, increased costs caused by supply chain disruptions, lower levels of customers due to the decrease in driving during the COVID-19 pandemic, and delays in turnaround time which increased costs and reduced the amount of work in progress invoices that could be billed.

The company will use the CCAA proceedings to conduct a SISP.

TD Bank has agreed to provide a DIP loan.

FTI is the monitor.

Counsel is MLT Aikins for the companies, Cassels for the monitor, Dentons for TD Bank, Lawson Lundell for Lift Auto Group, McLeod Law for Christos Stathonikos Family Trust et al., Taylor McCaffrey for Access Credit Union, Darrell N. Hawreliak Professional Corporation for Heffner Auto Sales and Leasing, Fillmore Riley for Rondex, Lewis & Chrenek for DDG Holdings, and Taylor Law Office for William Garth White and Gail Ann White.

By: Dina Milivojevic