Insights
The archive, newest first — posts 676–700 of 719. The 8 most recent are on the front. ← The newest analysis
Filing brief
Field Aviation: frozen by a cash sweep, funded by the same bank
On April 6 the lender served a notice of default and began sweeping the company's accounts daily to reduce its overadvance. The company could no longer make payroll from its own receivables, froze operations and laid off substantially all of 132 employees. Ten days later the same lender advanced US$1.5 million to cover the payroll. It is now the DIP lender funding the sale.
Case update
XTM: the chargebacks were paid with other merchants' money
A payments platform that held restaurants' funds to load workers' cards ran a $18.75 million deficit against those funds. In January a partner reset every merchant's displayed wallet balance to zero, without notice. Merchants began charging back — and because there was no cash behind the wallets, each clawback came out of the settlement account holding everyone else's money. The monitor now wants it returned, and most of the respondents are pubs answering by email.
Case update
Baffinland: the sealift can't wait for the DIP fight
Three competing debtor-in-possession proposals, a cross-motion by the senior secured lenders to have the court authorise someone else's, and a de novo hearing still to be scheduled. Meanwhile a mine on Baffin Island has one annual window to receive supplies by sea. The court's answer was a US$100 million charge in favour of suppliers that dissolves automatically the moment any DIP is approved.
Filing brief
CYMI Canada: the marquee projects that lost money
An electrical contractor that worked on the Samuel De Champlain Bridge corridor, the Eglinton LRT and the Gordie Howe International Bridge is winding down with roughly $24.4 million of creditors. Its own filing says the net financial contribution of several of those contracts was limited and in many cases negative. Its proposed interim lender is its Spanish parent, and the Gordie Howe joint venture wants time to look at that.
Filing brief
Paystone: the owners want to buy it back, and BDC got a few hours' notice
A payments company's lending syndicate sold out to a distressed fund at a steep discount. Ten days after the initial order, the company intends to seek approval of a sale to a buyer controlled by its own ultimate owners — assuming the new senior debt and leaving the subordinated secured debt, the notes and most of the trade debt unpaid. The subordinate secured creditor learned about the first-day hearing hours before it happened.
Paystone Holdings Inc., Paystone Inc., Atom Growth Inc. and Atom Growth (USA), Inc.
Outcome brief
Vandyk: KingSett's credit bid and the condo buyers who wanted out
No one else bid, so KingSett's stalking-horse credit bid won four Vandyk projects, approved by Justice Cavanagh over objections from an association of Lakeview condo buyers. After rescission letters arrived, the court on June 9 appointed representative counsel for more than 100 pre-sale purchasers facing an application to declare the purchase no "material change."
Filing brief
BlueRush: sold without a sales process, and why that was allowed
A receiver appointed in December sold the business in June to Kaltura without ever running a formal marketing process. The reasoning is the useful part: the company had been shopped for about a year before the appointment, it had no money to run a process, and there was no evidence a further one would produce a better price. A receiver's job is the return, not the ritual.
Filing brief
Groupe Finstar: 31 secured creditors, one sale process and a CCAA refused
A Laurentians and Lanaudière developer that borrowed from another developer at 50% interest is in receivership with Raymond Chabot. On June 5 Morin J. refused that lender's request to continue the case under the CCAA and approved one sale process for all of the group's projects, with bids due August 6.
Case update
Brightpath: two groups of noteholders, and a contest over who speaks for them
A mortgage lender's book is realising in dribs and drabs and will not repay its senior lender in full. The receiver has been authorised to give information to the Ontario Securities Commission. And the noteholders — who moved for a receiver before the senior lender did, and who asked that the order include the power to bankrupt the company to preserve a look-back period — are now split into two camps with a motion pending over which of them gets an official committee.
Filing brief
Demers: a reverse vesting order to keep the work permits
A Quebec greenhouse group sold its Lévis and Drummondville operations to Savoura in an ordinary asset sale. The berry fields went to the founding family instead — and by reverse vesting order, for two reasons the trustee sets out plainly: about $44 million of accumulated tax losses that an asset purchase would destroy, and temporary foreign workers holding closed work permits who cannot simply be re-hired by a new company before sowing season.
Filing brief
Golden Prairie: a receiver ran a hotel in Consort for seven months
A Saskatchewan credit union enforced against an Alberta village hotel — 49 keys, 55 more lodge units, and a Subway on the same five acres. The receivership order let MNP market the property but prescribed no process, so the receiver built one: two broker proposals, a flyer to 1,500 investors, 38 confidentiality agreements, seven site tours and six offers. It kept the hotel trading the whole time.
Kerrobert Golden Prairie Lodge Inc. and Consort Country Inn Ltd.
Case update
Newcastle: a receiver's judgment call, and a judge who wanted the reasons
KPMG asked to raise its borrowing from $500,000 to $2 million to finish a Durham Region development rather than sell it four units short. It documented its choice of construction manager in detail — an RFP, four invitations, three interviews, eight stated reasons. It did not document the far bigger decision to complete at all. Myers J. granted the increase because nobody opposed it, and said so.
Case update
3145 Jarry East: after the chosen buyer, a third and final round
Elm Acquisition Corp's offer for the 78-unit condo project, the best of two rounds, ended April 9 when its counsel told Richter it was not willing to proceed. A third, final round drew multiple offers by May 12; on the offers received, Richter sees no funds for unsecured creditors or secured creditors behind Equitable Bank.
Filing brief
Assembly Corp: an interim receiver as the price of a stay extension
The senior secured creditor would support the debtor's first stay extension on one condition — that the proposal trustee also be appointed interim receiver. The resulting order takes no possession and controls no property. It gives the same firm the power to approve every disbursement. And a separate provision lets the company pay out Construction Act trust money to subcontractors, including trusts that arose before the filing.
Case update
Imperial Tobacco: who checks the monitors' bills
Three CCAA proceedings, three monitors, three sets of counsel, and files opened in 2019. Rather than tax six sets of accounts itself, the court sends them to the Court-Appointed Mediator — a former Chief Justice of Ontario — who reports whether they are fair and reasonable, under a confidentiality protocol. Meanwhile the same court has been deciding, in writing and jointly with Quebec, whether a claimant needs one diagnosis or two.
Filing brief
RoadX: nobody knows where the trucks are
Five trucking companies, rolling stock scattered across two countries, lessors who may already have repossessed some of it, and management who moved some of it. Myers J. appointed a receiver and then wrote several paragraphs aimed not at the parties but at everyone who is about to meet one — what a receiver is, what it is not, and why "the property is in Texas" is not an answer.
Filing brief
Ecolomondo: the board resigned, so the monitor filed the application
All but one director quit on the morning of the CCAA filing. The last one resigned in the hours after the extension application was served. So the application to extend the stay was brought by KPMG rather than by the debtors — a public company with a tire-pyrolysis plant, hazardous material on site, about $310,000 in the bank, and utilities now asking for deposits.
Case update
Walton Canadian Land: nine years, forty-nine reports, creditors paid in full
Six Walton land funds filed 2025 annual reports on the same day, nine years into a CCAA that began in April 2017. One of them has now paid its proven unsecured claims in full, made a distribution to equity, and earned more in bank interest last year than it spent on professionals. What is still holding it open is a lawsuit and a school site nobody remembered it owned.
Filing brief
Snaile: a monitor without a CCAA
A lender applied to appoint a receiver. Before that was decided, it obtained something else on consent — Grant Thornton installed as "Monitor" under the Courts of Justice Act, the PPSA and the OBCA, with a set of injunctions freezing payments to insiders, protecting supplier and customer relationships, and requiring daily reporting on every dollar in and out. The company keeps running. Nobody takes possession.
Outcome brief
Haliburton Chrysler: four years old, $6.1 million short
A dealership incorporated in January 2022 filed a notice of intention, failed to produce a proposal when the sale it was built around fell through, and was deemed bankrupt on May 5. Its landlord was a related company that is now bankrupt too, and is owed $874,601. Its sister dealership went in three weeks earlier. And three vehicles moved from that estate to this one.
Case update
AMCO Farms: the order left out what the endorsement granted
In January a judge said he was satisfied the monitor needed an estate bank account to pay dividends. The claims procedure order that issued did not contain that relief. Four months later the monitor is asking to be authorised retroactively — because RBC demanded the company close its account, and because a monitor's general trust account cannot pay a dividend.
Case update
Steve's Music: five stores down to one, and a proposal still to write
A family music store that has sold instruments since 1965 filed a notice of intention in February with five locations and more than eighty staff. Four stores are closed. What is left is one Montreal shop and a web store — now spending money to restock the shelves the liquidation sale emptied, which is why the forecast is negative and the extension matters.
Filing brief
999 Gold Depot: one requirement to pay, and the business stopped
A family precious-metals business runs about $40 million a year through a 780 square foot shop with two induction furnaces. In April the CRA served a requirement to pay on the company's only bank. It lost access to its operating funds and filed a notice of intention four working days later. The stay got the money back — the $32 million claim behind it is still there.
Case update
RioCan-HBC: $400,000 in Yorkdale costs against the estate, not the receiver
A receiver asked the court to approve a sublease of the former Hudson's Bay space at Yorkdale. The landlord opposed and won, then sought $707,229 in costs — and asked that the receiver pay them personally. Kimmel J. refused personal liability, charged the estate instead, and explained why the party actually bearing the loss is the secured creditor that designed the transaction.
Filing brief
Seafood 2000: the lobster season would not wait
A Prince Edward Island processor with $26.5 million of assets and $22.4 million of debt could not close a working-capital facility for the spring lobster season. It filed under the CCAA on May 15 with a $490,000 debtor-in-possession loan from Finance PEI and express authority to pay for lobster and bait. A week later it asked to increase that loan to $3.8 million.