Innovative Capital Investments Inc. and Dominion Trading Ltd., CCAA

Innovative Capital Investments Inc. (“ICI”) and Dominion Trading Ltd. (“DTL”), related companies which operate collectively within the commercial fishing industry in Atlantic Canada, obtained CCAA protection on February 11 listing over $16 million in liabilities, including $15.7 million to BMO.

ICI is a Nova Scotia company that was incorporated to harvest fish, including groundfish, lobster and crab via licenses and quota it owns, shared catch agreements with license holders, as well as contract work through the Department of Fisheries & Oceans.

ICI owns two fishing vessels, the requisite fishing gear for harvesting, and arranges for the vessels to be crewed by fishermen who are compensated with a share of the catch.

DTL is a Newfoundland and Labrador company whose primary asset is a groundfish license that includes quota for halibut and turbot. Its primary business is to lease the quota on the halibut lease to a harvester on an annual basis.

The companies’ immediate liquidity crisis was caused in part by lower-than-expected lobster landings for the most recent commercial season, compounded by increasing operating costs. The companies were also unable to make a loan payment to BMO, resulting in BMO demanding payment.

The companies state that they have the ability to generate cash flow to sustain their operations, but not quickly enough to meet creditor demands or address their current liquidity crisis.

The purpose of the CCAA proceedings is to develop a global restructuring plan and conduct a SISP.

Doane Grant Thornton is the monitor.

Counsel is O’Keefe & Sullivan for the companies and Stewart McKelvey for the monitor.