Tebo Mill Installations Inc. et al. (the “TEBO Group”), a group of integrated construction and engineering companies based in British Columbia, were placed in receivership on May 7 on application by RBC, owed approximately $5.5 million.

The group previously obtained CCAA protection on April 5. Its restructuring plan was predicated on the receipt of new capital from Dalocorp PTE Ltd., an overseas company.

According to management, an “initial test tranche” of approximately €5.0 million is ready and available to the group in a Deutsche Bank account, but its attempts to have the money wired have been met with various administrative roadblocks. It put into evidence details of a purported SWIFT transfer that did not go through.

Crowe MacKay, the company’s monitor, investigated these claims, noting that throughout its investigations, the only information about Dalocorp and the funds at Deutsche Bank has come from the group.

On April 18, Deutsche Bank wrote to the monitor, stating that it believed the details of the purported SWIFT transfer were not authentic and that it had no client relationship with a company named Dalocorp PTE Ltd. For these and other reasons, the monitor issued a material adverse change report and a receivership order was granted shortly thereafter.

KPMG is the receiver.

Counsel is Dentons for RBC and Poulsen & Company Law Corporation for the receiver.

By: Dina Milivojevic