Northlink Supply Ltd., an Alberta-based industrial supply and distribution company, was placed in receivership on April 24 on application by TD, owed approximately $4.1 million.

The company is embroiled in a shareholder dispute involving its three principals. According to TD, the materials filed in the shareholder dispute reveal a dysfunctional relationship between management of the company that is having a negative impact on the company’s operations and TD’s security position. Among other things, one of the shareholders appears to have taken control of the operations of Northlink and created a new company through which he now operates using TD’s collateral. In addition, Northlink’s JV partner has terminated the Pipesak Joint Venture, which is the company’s primary source of revenue.

PwC is the interim receiver. Counsel is Dentons for TD, Duncan Craig for Mark Loos and Hillenbrand Kozicki for Dustin Scott.

By: Dina Milivojevic