Mercy Falls BC Inc., CCAA

Mercy Falls BC Inc., a British Columbia-based production company formed specifically to produce a film adaptation of the novel "Shiver" by Maggie Stiefvater, which is the first novel in the series "The Wolves of Mercy Falls", obtained CCAA protection on May 16.

The film is in post-production, but suspended its operations in December 2024 due to liquidity issues.

The ultimate owner of the rights to the film is Mercy Falls Films, LLC (the "Studio"), a Wyoming company that is unrelated to the company. The Studio was to advance approximately US$20 million to fund the production, but failed to provide approximately US$9 million after a failed attempt to obtain bridge financing from HeadGear Films, a financier and executive producer located in London, UK. This caused the company to be unable to meet its vendor commitments and continue with the production, so it laid off the vast majority of its 170 employees and contractors.

The company has approximately $8.5 million in liabilities, including approximately $3.1 million to NBC.

The purpose of the CCAA proceedings is to enforce the Studio’s funding obligations, or to otherwise take over the rights to the film so that it can be completed, and to use the proceeds from any resolution with the Studio or alternatively the sale of the production to put forward a plan to creditors. Nuts & Bolts Productions, LLC, the company’s parent, is providing a DIP loan.

MNP is the monitor.

Counsel is Miller Thomson (insolvency counsel) / Poulus Ensom Smith LLP (litigation counsel) for the company, McCarthy Tétrault for the monitor, Michael, Evrensel & Pawar for Nuts & Bolts Productions, and Blakes for NBC.