Fiera places MTE Logistix into CCAA with $46.3 million owed

MTE Logistix Limited Partnership and seven related companies were placed under Companies’ Creditors Arrangement Act protection on June 29, 2026, on application by senior secured lender Fiera Private Debt Fund VI LP, owed approximately $46.3 million as of June 12.

MTE Logistix is one of Western Canada’s largest third-party logistics providers. It operates approximately 3.3 million square feet of leased warehouse space across 16 facilities, including 11 in Edmonton and five in Calgary, under the MTE Logistix, Active Warehousing and Porter Warehousing & Distribution brands. Its services include warehousing, cold storage, order fulfilment, distribution and freight for customers in sectors including food and beverage, consumer products, construction, automotive, forestry and pulp and paper.

The business employed approximately 325 people as of June 19, including 253 in Edmonton and 72 in Calgary. Approximately 161 employees were represented by Teamsters Canada. The group’s top 10 customers generated more than 55% of its 2025 revenue, making the preservation of customer relationships and uninterrupted service central to the restructuring strategy.

Hillcore Group Holdings Ltd. acquired substantially all of the MTE Group’s assets in August 2021 as part of a plan to build a national logistics platform. Fiera advanced $56 million to finance the transaction. The operations, employees, customer contracts and bank accounts were later consolidated under MTE Logistix, leaving most of the affiliated corporate entities without active operations, employees or material assets.

The business deteriorated after pandemic-era demand for warehouse space subsided. Excess capacity, lower throughput, pressure on customer rates and rising labour and rental costs reduced revenue and profitability. Revenue fell from $80.2 million in 2022 to $71.8 million for the 12 months ended April 30, 2026, while EBITDA declined from $13.8 million to $1.2 million. MTE Logistix recorded net losses of approximately $8.5 million in 2024, excluding an impairment charge, $4.1 million in 2025 and $6.6 million for the 12 months ended April 30, 2026.

The company’s December 31, 2025 financial statements reported approximately $38.7 million of assets and $62.2 million of liabilities, leaving negative equity of approximately $23.5 million. Its assets included $20.5 million of goodwill and other intangible assets, and the company recorded a $41 million impairment against goodwill and intangibles in 2024. That limited tangible asset base reinforced Fiera’s position that a going-concern sale would produce a better recovery than a receivership or liquidation.

Financial covenant defaults first emerged in late 2023. Fiera subsequently entered into a series of amendments, accommodations and forbearance arrangements, including temporary covenant relief, deferred principal payments and required capital injections from Hillcore. Defaults continued as the company’s financial performance weakened, reporting obligations were missed and scheduled principal payments were deferred or unpaid.

A major source of pressure was a 15-year lease for a new Calgary property known as the Eastlake Premises. The lease was entered into with a landlord joint venture involving Hillcore and York Realty without prior notice to Fiera. The facility was substantially completed in September 2025, and MTE Logistix faced rent, additional rent and property-tax payments beginning July 1, 2026. Management advised that the company lacked the cash to make the payment. MTE Logistix issued a disclaimer notice for the lease shortly after the CCAA filing.

Hillcore also failed to make a required $500,000 capital injection by its March 31 deadline, triggering a termination event under the forbearance agreement. The payment was ultimately made around May 1. Fiera delivered a further default notice on June 5 after management forecast that the company would run out of cash before the end of June without new funding. Fiera issued formal demands and notices of intention to enforce security on June 12 after Hillcore and the borrower did not agree to a consensual process.

The restructuring is centred on a sale and investment solicitation process in which a Fiera credit bid is intended to serve as the stalking horse. The parties plan to seek court approval of the process shortly, together with a conditional approval and vesting order that would permit the credit bid to close if it emerged as the successful transaction. The process is also expected to consider further location rationalization, including the disclaimer of underperforming leases. Fiera is providing a DIP loan.

KPMG is the monitor. Counsel includes Norton Rose Fulbright for Fiera and Gowling WLG for the monitor.