Pioneer Balloon Canada Limited, NOI

Pioneer Balloon Canada Limited, a Hamilton, Ontario-based subsidiary of Pioneer National Latex, a US-based balloon manufacturer, filed an NOI on June 12.

In October 2023, the US parent entered into restructuring proceedings under Chapter 11 of the US Bankruptcy Code. The US proceedings resulted in a sale of the US assets but did not result in any disposition of the Canadian business or assets, and the company has suffered a liquidity crisis as a result.

The Canadian entity is insolvent. It has breached its borrowing base covenants under its credit agreement with RBC, owed approximately $2.3 million on a secured basis, which has demanded repayment.

Without the continued support of its US parent – both operationally and with the parent as its major customer – Pioneer is unable to continue regular operations.

KPMG is the proposal trustee.

Counsel is Loopstra Nixon for the company, BLG for the proposal trustee, Harrison Pensa for RBC, and Blakes for FGI Worldwide,