Widescape group entities file NOI, obtain court approval of asset sale

On December 17, 2025, 10696030 Canada Inc. and 10696056 Canada Inc. each filed notices of intention to make a proposal under the Bankruptcy and Insolvency Act, with PricewaterhouseCoopers Inc. appointed as trustee.

The debtors form the core operating entities of the Widescape group, a Québec-based business founded in 2018 and headquartered in Saguenay. The group designs and commercializes the WS250 stand up snowmobile intended for recreational and utility use. 10696030 Canada Inc. holds the group’s intellectual property and owns 100% of 10696056 Canada Inc. and Widescape USA Inc., while 10696056 Canada Inc. owns the tangible assets and carries on manufacturing and distribution activities in Canada. Widescape USA Inc. was established to obtain US Environmental Protection Agency certification required for US sales.

The trustee and the debtors attribute the deterioration of the group’s financial position to a combination of operational and market factors. These include production levels and inventory accumulation that exceeded the pace of sales, an unfavourable winter season marked by weak snowfall and reduced demand, supply chain pressures and rising costs that compressed margins, and financing constraints that limited working capital. The group relies on an international supply chain, with key suppliers located in Vietnam and India, which increased exposure to liquidity stress once sales slowed.

Secured creditor pressure intensified in December 2025, when the Bank of Nova Scotia asserted a secured claim of $2.539 million and Investissement Québec asserted a secured claim of $3.361 million. EFL Global Logistics Canada Ltd. also registered a reservation of ownership over certain movable assets supplied to 10696056 Canada Inc. Ordinary unsecured indebtedness totalled $13.239 million.

Facing limited liquidity and the risk of enforcement, the debtors pursued a restructuring or sale throughout 2025. In July 2025, discussions were held with principal creditors, including the Bank of Nova Scotia, Investissement Québec, Desjardins Capital, and Economic Development Canada. Creditors granted the group until August 29, 2025 to identify an investor or purchaser, failing which an informal sale process would commence under the supervision of the trustee.

A solicitation process followed, with outreach to approximately 15 potential purchasers and 20 prospective investors. One letter of intent was ultimately received and executed on October 31, 2025. The transaction contemplated the sale of substantially all Canadian assets to Artic Cat Sales Inc. and included arrangements to address critical suppliers, including approximately $1.3 million owing to a Vietnamese supplier and $158,000 owing to an Indian supplier, to preserve future supply relationships. The Superior Court of Québec approved the transaction on December 18, 2025.

Counsel is Gauthier Bédard Avocats Inc. for the debtors, McCarthy Tétrault LLP for the Bank of Nova Scotia and Borden Ladner Gervais LLP for the purchaser, Artic Cat Sales Inc.