- Insolvency Insider Canada
- Posts
- Faissal Mouhamad Professional Corporation
Faissal Mouhamad Professional Corporation
Faissal Mouhamad Professional Corporation ("FMPC"), which operates dental clinics in Red Deer and Calgary, Alberta, and 52 Dental Corporation and Delta Dental Corp., which manage the Red Deer and Calgary clinics' business operations, were placed in interim receivership on August 23, on application by RBC, owed approximately $3.1 million. RBC has become increasingly concerned that funds have been diverted from and payments have been made by FMPC to other corporations owned by Faissal Mouhamad, the principal of the companies, contrary to the terms of the credit facilities and the security granted to RBC. FMPC is also in default of the credit facilities and the security in that, among other things, it has failed to repay all amounts owing to RBC on demand, is not conducting day-to-day banking at RBC, has changed the ownership structure of the companies without giving RBC prior written notice and has failed to notify RBC of certain litigation against it. MNP was appointed interim receiver. Counsel is Miller Thomson for RBC and McMillan for the interim receiver.