Groupe Buko enters CCAA with pre-negotiated dental clinic sale to 123Dentiste

Groupe Buko, a Québec-based network of dental clinics, obtained an initial order under the Companies’ Creditors Arrangement Act on April 29, 2026.

The group was formed in 2022 to consolidate a network of dental clinics across Québec, ultimately comprising 9 locations in Montréal, Québec City and the Centre-du-Québec region. Two clinics entered bankruptcy on March 24, 2026, reducing the operating footprint ahead of the filing. The business is controlled by dentists Dr Quynh-Anh Pham and Dr Claude Morissette, who built the platform through a series of acquisitions between 2012 and 2023.

Financial deterioration emerged over the past three fiscal years as revenues stagnated and operating costs rose, leaving the group unable to service its debt despite positive EBITDA in 2025. Labour shortages among dentists and hygienists constrained patient volumes, while wage inflation increased operating expenses, compressing margins. The acquisition of a Longueuil clinic in 2024 added approximately $1 million in long-term debt and generated continued losses, further weakening liquidity and breaching financing covenants.

The restructuring is centred on a pre-negotiated sale process led by MNP, which began in April 2025 and resulted in agreements dated April 22, 2026 to sell substantially all assets of 4 clinics to 123Dentiste Québec Inc. and Dr Vigneault Ltée. The transaction contemplates a going-concern transfer of operations, including the retention of most employees and the assignment of key leases, professional service agreements, and supplier contracts. Concurrently, the group intends to sell its Saint-Laurent clinic to a separate purchaser and pursue restructuring or disposition options for the remaining Berthierville and Louiseville locations.

As part of the 123Dentiste transaction, the companies are seeking court approval to assign a broad suite of contracts, including real estate leases, dentist and denturologist service agreements, and operational supplier contracts necessary to maintain clinic continuity. Cure costs are generally minimal or nil across the assigned agreements, with the purchaser agreeing to remedy monetary defaults following closing.

The debt structure includes senior lending relationships with Caisse Desjardins, National Bank of Canada, Bank of Montréal, and Royal Bank of Canada, each financing specific clinic operations, alongside equipment lessors and trade creditors.

MNP is the monitor. Counsel is Lavery, de Billy for the companies, Langlois for the monitor, Miller Thomson for the 123Dentiste purchaser group, and Gowling WLG for Desjardins.