Igloo Industries Group, Receivership

Igloo Industries Group, a Toronto, Ontario-based commercial food equipment sale and distribution business, was placed in receivership on May 22 on application by RBC, owed over 6.0 million.

The company had previously filed an NOI on February 21. While under creditor protection, it focused on certain restructuring measures with a view to controlling costs and improving liquidity. Three of its four leases were terminated and non-core assets were sold.

Despite these efforts, the company’s financial results suffered, with the company noting that many customers cancelled or delayed purchases due to their misunderstanding of the nature of the insolvency proceedings or their worry about the company’s ability to provide after-sale support.

After falling behind on post-filing payroll obligations and restructuring professional fees, among other obligations, the proposal trustee issued a material adverse change report and a receivership order was granted shortly thereafter.

Spergel was appointed receiver.

Counsel is Foglers for RBC, Reconstruct for the debtors and Harrison Pensa for the receiver.

By: Dina Milivojevic