Toronto Machine & Tool Company

Toronto Machine & Tool Company, a Scarborough, Ontario-based supplier of machined castings, fabrications and assemblies, was placed in receivership on March 2 on application by RBC, owed approximately $3.3MM. The company cites poor management, combined with two major events during the late spring and summer of 2016, as the cause of its current financial difficulties. There was a mild recession in the mining and oil and gas sectors, from which the company derives 70% of its revenues. Moreover, forest fires in Northern Alberta affected oil sands production and development. The company's former general manager failed to effectively react to market conditions, and poor implementation of a new resource planning software program also contributed to the management's failure to react to these problems in a timely manner. msi Spergel (ICIN) was appointed receiver. Counsel is Devry Smith Frank for the applicant and Levy Zavet for the company.