FGC Health LP et al., Receivership

FGC Health LP et al., a group of healthcare companies that own and operate pharmacies and healthcare clinics in British Columbia, Alberta, Manitoba, and Ontario, were placed in receivership on August 13 on application by CWB Maxium Financial, owed over $45 million.

The companies breached various covenants under their loan agreement with Maxium, including reporting requirements, debt service coverage and leverage ratio requirements, payment defaults, and unauthorized payments to management and related parties, among others. The parties then entered into a forbearance agreement, but that was also breached.

PwC is the receiver.

Counsel is Fasken for Maxium, BLG for the companies, Bennett Jones for the receiver, and Blue Rock Law, MLT Aikins, Miller Thomson, Morelli Chertkow and PMR Law for various secured creditors.