Tebo Mill Installations Inc. et al., CCAA

Tebo Mill Installations Inc. et al. (the “TEBO Group”), a group of integrated construction and engineering companies based in British Columbia, obtained CCAA protection on April 5, listing approximately $13.8 million in liabilities, including $5.6 million to RBC.

The TEBO Group operates across three business segments: installation, construction and fabrication, and is the largest custom steel fabrication manufacturer in the Lower Mainland.

In September 2020, a silo collapse at Fibreco Export’s terminal in North Vancouver - where the company had completed two major projects - delayed payment of accounts receivable and significantly impacted the TEBO' Group’s liquidity.

The TEBO Group was acquired by its current owners in 2021 and obtained financing from RBC in November of that year to address working capital requirements. However, the RBC facilities failed to meet new project financing needs as the TEBO Group continued to diversify, including with significant projects in Africa.

Revenues stalled and the TEBO Group was unable to service the RBC loan. The parties entered into forbearance agreements, but the TEBO Group was unable to refinance during that time.

RBC brought a receivership application in October 2023 and the TEBO Group filed a competing CCAA application in November 2023. Neither application was pursued for a time while the TEBO Group worked to secure financing from Al-Amanah Islamic Investment Bank of the Philippines.

The TEBO Group revived the CCAA application after RBC refused to accept its manual “MT103” international wire transfer of funds.

Crowe MacKay is the monitor.

Counsel is Bennett Jones for the companies, Fasken for the monitor and Dentons for RBC. KPMG is the financial advisor to RBC.

By: Dina Milivojevic