Index Group of Companies, receivership

Index Group of Companies, a Mississauga, Ontario-based restaurant group involved in the development and operation of Popeye's Louisiana Chicken and Denny's franchise restaurants, was placed in receivership on May 8, on application by Canadian Western Bank. The companies have defaulted on the loans given by CWB, including by failing to make payment when due, allowing subordinate liens to be registered without CWB's consent and allowing certain restaurant leases to be terminated. The companies then defaulted on the terms of a forbearance agreement, including by failing to make payment when due, allowing further subordinate liens to be registered without CWB's consent, failing to pay taxes when due, and failing to cooperate with CWB. In addition, there was a major fire at one of the Popeye's locations, resulting in a material adverse change. MNP is the Receiver, represented by Dickinson Wright. Cassels is counsel for CWB.

By: Dina Milivojevic