Motovan

Motovan, a Montreal, Quebec-based distributor of powersports parts and accessories, obtained protection under the CCAA on December 2. An industry leader for over 30 years, the company expanded outside of Canada in 2015 through the acquisition of US-based Motorcycle Tires & Accessories LLC (MTA). The acquisition has not been successful though. The US company has generated negative EBITDA since its purchase, and the shift in management's focus from the Canadian operations to the integration of MTA negatively impacted Canadian revenues as well. Despite attempts to cut costs and enhance various aspects of its operations, the company remains in breach of its fixed charge coverage ratio with its operating lender, BMO, and it does not have the liquidity to purchase the levels of inventory necessary to support its operations. The company intends to run a sales and investment solicitation process in consultation with its stakeholders while under creditor protection. KPMG is the monitor. Counsel is BCF for the company and Norton Rose Fulbright for the monitor.