Insights
The archive, newest first — posts 151–175 of 719. The 8 most recent are on the front. ← The newest analysis
Filing brief
AgWest: BMO's CCAA to carry a farm dealer to the next growing season
Bank of Montreal, owed $34.3 million, applied to put the AgWest companies, a farm-equipment dealer with eight branches in Manitoba and Saskatchewan, under the CCAA. Justice Woolley's initial order of October 13 stays proceedings to October 23 and gives the monitor enhanced powers; the bank seeks a $6 million interim facility at an October 15 hearing.
Case update
National Traffic Safety: two recent arrivals and the last possible day
The company had meant to ask the court on October 13 to approve the sale of its business to A2 Environmental, its sole director's company. Instead the trustee proposed a round of binding offers from A2, a shareholder group and an arm's-length party, due October 16, and Justice Dunphy extended the time to file a proposal to October 26, "the last possible day."
Case update
Jay's Metal: about $610,300 to or for the principal, repaying his loan, he says
BDO's Fourth Report lists about $610,300 paid from Jay's Metal Products to or for Jagjit Bajwa between August 5 and 21, including a $148,500 cheque that cleared the day after the receivership order. He testified the transfers repaid his shareholder loan, and BDO no longer seeks a contempt declaration at the October 15 hearing.
Case update
Kidoodle: the lenders who brought the receivership are the stalking horse
AlixPartners' application, returnable October 20, seeks approval of a sale process with A Parent Media's second-lien noteholders, on whose behalf the receivership was sought, as stalking horse. They offer cash for the receiver's charges and other priority charges, at least US$2 million in cash on the bank's debt with the rest assumed, and a credit bid of their US$4 million note.
Filing brief
Ferguson-Neudorf Glass: five Suffolk jobs and a $17 million floor
The Beamsville curtain-wall contractor and its property company filed notices of intention on October 2, with its president's affidavit citing disputes with Suffolk Construction on five Boston-area jobs among the causes. Their motion returnable October 15 seeks a $2.5 million RBC DIP and a sale process anchored by a $17.0 million stalking horse.
Case update
Teal Jones: the sales wait on the Competition Bureau
The approved sales have one closing condition left, the Competition Bureau's, and on September 29 the Bureau said its review may run to November 12, the monitor reports. An amendment signed October 8, subject to court approval, would extend the interim facility to November 27 and require the remaining assets sold or refinanced by October 30.
Guide
CCAA vs bankruptcy vs receivership: what's the difference in Canada
When a Canadian company can't pay its debts, it can restructure under the CCAA or a proposal, its lender can put in a receiver, or it can go bankrupt. Who controls the business on each route, who decides, how long it takes and what creditors get, drawn from the court record.
Guide
Division 1 proposal: how it works for a business in Canada
When a Canadian business can't pay its debts, a Division 1 proposal lets it keep operating while it offers creditors a deal. How the notice of intention, the six-month clock, the vote and court approval work, what CRA must be paid, and what happens when it fails, drawn from the court record.
Guide
Power of sale vs foreclosure vs receivership in Canada
When a Canadian borrower stops paying a mortgage, the lender can sell the property itself, ask a court to foreclose, or have a receiver take control. How the routes differ by province, what each means for owners and tenants, and how long a receivership takes, drawn from the court record.
Guide
What happens to employees when a company goes bankrupt in Canada
When a Canadian employer goes bankrupt or into creditor protection, its workers are owed pay it cannot meet. What ranks first, what the Wage Earner Protection Program pays and how to apply, and what happens to severance, pensions, benefits and jobs when the business is sold, drawn from the court record.
Guide
What happens to gift cards when a company goes out of business in Canada
When a Canadian store chain files for creditor protection, a court order decides how long its gift cards still work — often about two weeks. What happens after that, and to deposits, refunds, points and bookings, drawn from the 20 retail chains that went to court since 2023.
Guide
What happens to your deposit if your builder goes bankrupt in Canada
When a Canadian builder goes bankrupt or into receivership, buyers of condos, new homes and presales have paid deposits that may be in trust, insured or already spent. How Tarion, deposit insurance and the trust rules work in Ontario, British Columbia, Alberta and Québec, what a receiver can do with your purchase agreement, and how deposits come back, drawn from the court record.
Guide
What to do when a company that owes you money goes bankrupt in Canada
When a Canadian company that owes you money goes bankrupt or into creditor protection, what you actually get back is usually a fraction of the debt, often nothing, and only if your claim is in on time. How to find the case, file a claim, meet a bar date, vote on a plan, take back goods and get paid, drawn from the court record.
Case update
AgraCity: a surplus at NewAgco and loans the monitor could not validate
EY's Ninth Report proposes splitting the AgraCity group's $48.2 million sale price by company, $26.5 million of it for NewAgco's product registrations. On a company-by-company payout, the monitor expects NewAgco's and Viking's creditors to be paid in full and AgraCity's proven creditors to get nothing but about $97,000 to CRA, and it sets out substantive consolidation.
Case update
Canada Tire: who should control the liquidation
Canada Tire's relaunched sale process drew no acceptable offer. On October 8 the company applied to sell its own stock through the winter with MNP as final decision-maker on strategy and material pricing; FGI, which says it was owed $16,570,353.63 on October 7, called the plan "neither credible nor realistic" and applied for a receiver.
Outcome brief
Canstar Restorations: an RVO, and an employee clause rewritten on hearing day
By reverse vesting order made October 9, Justice Stephens approved the issue of new Canstar Restorations equity to Premium Restoration Ltd. An amendment dated the day before dropped the termination and re-hiring of the transition employees; the order instead transfers their employment to 1608083 BC Ltd. The price stays sealed.
Case update
ILAC: KPMG's reports tie the revenue slide to study-permit caps
KPMG's first-meeting reports of October 8 and 9 give the trustee's understanding of why revenue fell at the ILAC schools: federal study-permit caps, a work-permit rule and fewer British Columbia attestation letters. For the parent, owing a bank syndicate about $133.1 million, KPMG anticipates a material shortfall for secured creditors and no distribution to unsecured ones.
Filing brief
The Simple Investor: no sale, no restructuring, and October's rent in dispute
Eighteen Simple Investor companies filed notices of intention, and they and trustee AlixPartners now say no viable restructuring or sale is possible and that, "optimistically", operating funds run out by October's last week. First mortgagee Firm Capital, which says it is owed over $80 million, wants the stay lifted. Justice Steele adjourned that motion, to which the companies and the trustee consent, to October 13.
The Simple Investor Real Estate Group Inc. and related entities
Case update
A2A: the monitor asks to borrow $5.5 million at 18%
Pillar Capital's $1,500,000 interim facility matures November 30, and the A2A monitor says it has no ability to repay it by then. It asks to borrow up to $5,500,000 from Pillar at 18% to repay that loan, fund an interest reserve and pay the professionals' aged invoices, with the administration charge then cut to $1,000,000.
Case update
Baffinland: the monitor's case for letting the CRO decide
FTI, Baffinland's monitor, recommends the lenders' form of sale process, in which the court-appointed CRO, with the monitor's assistance, makes the key decisions, and says royalties and ArcelorMittal's place as largest iron ore customer give the operating committee's members an economic interest in the outcome. EDC says the debtors are in default; they deny it.
Filing brief
EC Toronto and EC Vancouver: the largest creditors share the EC name
Two EC language centres assigned themselves into bankruptcy a day apart, Toronto on October 6 and Vancouver on October 7. Their sworn statements list assets of about $28,000 and $20,000 against liabilities of $19.7 million and $16.8 million, and in each the three largest claims are owed to companies bearing the EC name.
EC Toronto Language Centre Limited, EC Vancouver Language Centre Ltd.
Outcome brief
FUM: six adjournments, then a plan with no vote against
The vote on the CCAA plan of FUM, a maker of nicotine-free flavoured air devices, was put off six times by notice; the monitor's stated reason was settlement discussions with certain key stakeholders. On October 2 both classes approved the plan with no vote against, and on October 7 Justice C.D. Simard sanctioned it.
RDFN FUM Natural Products Ltd. and RDFN FUM Natural Products Inc.
Outcome brief
Minglian: the Duet closes, and MNP asks to be discharged
The sale of Minglian's Duet project in Vancouver closed on September 19, the monitor reports; it received net proceeds of about $21.54 million and paid National Bank of Canada about $20.04 million on October 6. MNP intends to disclaim the presale contracts and return the deposits still in trust, and asks to be discharged with releases.
Case update
Portwood: thirty potential bidders, and no one topped the credit bid
PwC's sale process for Phases 3 to 5 of Portwood drew three NDAs and no qualified bid but the first-mortgage holders' $127.1 million credit bid; they say they are owed $127,224,362.88. The monitor understands those ranking behind the first mortgage are not expected to recover from the sale, and seeks its approval on October 13.
Filing brief
Regent Aircraft: a sale to Sunshine, and a fuselage BDO reads as security
BDO asks the court on October 14 to approve a sale of most of the Calgary aircraft repairer's assets to Sunshine Airspares, at a price it asks to seal. Its report reads a C$100,000 bill of sale for a Twin Otter fuselage as security, and records about $30,000 collected on $2.36 million of reported receivables.