Karwood Contracting et al., CCAA

Karwood Contracting et al., a group of end-to-end construction companies, obtained CCAA protection on February 3.

The group began work in Newfoundland and Labrador in 1999 and expanded into Ontario in 2018, growing to provide annual employment to approximately 120 individuals and subcontractors.

The goal for the Ontario companies was to get employees with expertise from Newfoundland and Labrador to travel to Ontario and transfer knowledge. However, the onset of the COVID-19 pandemic and related travel restrictions directly impacted this business strategy.

The companies were also impacted by lawsuits in Ontario, COVID-19, subdivision approval delays, rising costs, and lender demands.

The purpose of the CCAA proceedings is to sell the companies’ assets, pay secured creditors and continue with pending work as a going concern to pay unsecured creditors.

BDO is the monitor.

Counsel is O'Keefe & Sullivan for the companies.