Crown Crest Group of Companies, CCAA
The Crown Crest Group of Companies, a Toronto, Ontario-based group of companies in the business of renting and servicing HVAC and energy conservation equipment to retail consumers, obtained CCAA protection on November 9. The CCAA application was brought by secured creditor Peoples Trust Company, owed approximately $39.7 million, and was supported by company management. The filing follows several months of significant financial loss ($300,000 a month excluding the payment of operating expenses based on, among other things, debt service requirements and other variable costs that are rising as a result of inflation). The companies will use the CCAA proceedings to seek additional capital and liquidity to continue operations while exploring restructuring options. Peoples Trust Company will be providing a DIP loan of up to a maximum of $15 million. KPMG is the monitor. Counsel is Gowling WLG for Peoples Trust Company, Miller Thomson and Stikeman Elliott for the companies, Osler for the monitor, and Aird & Berlis for HWS Consulting (the CRO).
By: Dina Milivojevic