2020 brought many diverse challenges for businesses—both Covid and non-Covid related. The W Law LLP Insolvency and Restructuring Group acted for lenders, Court-appointed insolvency professionals and debtor companies in a variety of Court-supervised proceedings and other assignments. Here are some of the highlights.
Receivership of Leisure and Recreation Retailer (Settled)
W Law acted as counsel to a secured lender in applying for a Receivership Order respecting a leisure and recreation retailer whose loans were significantly in arrears and which had ceased cooperating with the bank. The matter was ultimately resolved prior to the hearing date with a payout in full for the secured lender.
Bankruptcy of a Project Management Company (Settled)
W Law acted as counsel to a secured lender in applying for a bankruptcy order respecting a project management company whose operations had ceased, loans were significantly in arrears and which had ceased cooperating with the bank. The matter was ultimately resolved prior to the hearing date with substantial recovery to the secured lender.
Receivership of Harmon International Industries (Settled)
W Law acted as counsel to a secured lender in obtaining a Receivership Order respecting Harmon International Industries Inc. of Saskatoon. The matter was ultimately resolved by negotiation with substantial recovery to the secured lender.
Informal Protection and Refinancing of a Local Manufacturing Business (Settled)
W Law acted as counsel to a local manufacturing company to resist a Notice of Intention to Enforce Security under section 244 of the Bankruptcy and Insolvency Act. Resolution was ultimately achieved through the negotiation of a relatively brief forbearance period to permit the debtor company to pursue refinancing options. The debtor company was ultimately successful in refinancing, resulting in recovery in full for the secured lender, and a beneficial restructuring for the company.
Liquidation of PrimeWest Mortgage Investment Corporation (Ongoing)
W Law acts as counsel to, KPMG Inc., Court-appointed Liquidator of PrimeWest Mortgage Investment Corporation in ongoing proceedings to: a) cease operations in an efficient and definitive manner; b) safeguard the current assets of the corporation and move to realize them in due course; c) establish a claims process by which to address all claims against the corporation in a timely and cost-effective manner; and d) make distributions to creditors and, in the event of there being remaining equity, to shareholders in as expedited and equitable a manner as possible.
Companies’ Creditors Arrangement Act (“CCAA”) Proceedings Against Morris Industries Inc., et al. (Ongoing)
Morris Industries Inc. and a group of related companies (comprising three additional Saskatchewan-based companies and an American branch), in the business of manufacturing and distributing farm equipment, filed for protection under the CCAA on January 8, 2020. W Law acts as Saskatchewan counsel to a senior secured creditor of the Morris group of companies.
Restructuring of Two Unrelated Saskatoon Construction Companies (Both Proposals Approved by the Creditors and the Court)
W Law acted as counsel in the successful restructuring of two unrelated Saskatoon construction companies, each with approximately $2 million in liabilities. A Proposal to Creditors under Division I of the Bankruptcy and Insolvency Act was approved by the required majority of unsecured and secured creditors of each company. Court approval of the Proposal of each company was granted in December of 2020.
Forbearance Arrangement in Regard to Group of Saskatchewan Mechanical Servicing Companies (Settled)
W Law acted as counsel to a secured lender to a group of Saskatchewan mechanical servicing companies in the successful preparation, negotiation and execution of a forbearance arrangement which ultimately permitted the group of companies to undergo an informal restructuring and repay the secured lender.
Bankruptcy of an Individual Requiring Realization of Assets in Foreign Jurisdiction (Ongoing)
W Law acts as counsel to a Trustee in Bankruptcy to assist in navigating complex legal issues and procedural requirements of the recognition of a foreign trustee in South Africa, and the process of realizing on various categories of assets located in the foreign jurisdiction.
Receivership of Regina Gym and Fitness Operations (Ongoing)
W Law acts as counsel to a secured creditor of Family Fitness Inc., owner and operator of three gym and fitness facilities in Regina, Saskatchewan, in obtaining a Receivership Order of the Court of Queen’s Bench For Saskatchewan over all property associated with the three gyms. The secured creditor acted as the Stalking Horse in a Sales and Investment Solicitation Process approved by the Court, and was ultimately selected by the Receiver as the winning bidder.
Various Matters in the Bankruptcy of EncoreFX (All Settled)
W Law acted as counsel for various parties against whom claims were advanced in the fallout from the bankruptcy of EncoreFX Inc., a British Columbia-based foreign exchange firm, whose clients were predominantly importers and exporters conducting yearly aggregate transactions in the range of $10-$20 million, which filed for bankruptcy in March of 2020. All of the claims in question were favourably resolved through settlement negotiations.
Pro Bono Advice to Various Saskatchewan Businesses During the Covid-19 Pandemic
W Law provided advice to various Saskatchewan businesses during the global pandemic at no charge in an effort to assist local businesses to navigate the multiple acute issues and challenges brought on by the pandemic.
This article is for informational purposes only and is not constitute legal or accounting advice and does not create a solicitor-client relationship. W Law LLP does not make any guarantee about the accuracy or completeness of the information contained herein.