MLT AIKINS LLP INSOLVENCY & RESTRUCTURING GROUP

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1 MLT AIKINS LLP INSOLVENCY & RESTRUCTURING GROUP YEAR IN REVIEW Lawyers from MLT Aikins LLP (and its legacy firms, MacPherson Leslie & Tyerman LLP and Aikins LLP) worked on a variety of insolvency and restructuring assignments for clients across Western Canada in. Our lawyers also participated in a number of speaking engagements, presented papers and achieved other milestones in. ALBERTA ASSIGNMENTS Synodon Inc. (Receivership) Dana Nowak acted as counsel to the court-appointed receiver of Synodon Inc., an Edmonton technology company providing services to the oil and gas sector. Elements West Inc. Damen Trucking Ltd. (Receivership) Dana Nowak acted as counsel to the primary secured creditor of Elements West Inc. ( Elements ) and Damen Trucking Ltd. ( Damen ), of Spruce Grove and Big Valley, Alberta, in obtaining a Receivership Order in respect of Elements and Damen Development Inc. (Interim Receivership) Jeff Lee and Dana Nowak acted as counsel to the court-appointed interim receiver of Development Inc. ( ), a Fort McMurray-based concrete and hauling company (the Interim Receiver ) and assisted the Interim Receiver in reporting to the Court on the sale of assets and realization on insurance proceeds generated as a result of the Fort McMurray fires Alberta Ltd. (Receivership) Alberta Ltd. ( 121 ) is an Alberta corporation which owns real estate previously occupied by an Edmonton steel fabrication company. On September 23,, the Court appointed a receiver (the Receiver ) of the assets and undertaking of 121. Jeff Lee acts for the Receiver in its administration of the receivership estate. Walter Herrador Professional Corporation (Receivership) Dean Hutchison acted as counsel to the primary secured creditor of Walter Herrador Professional Corporation, a dental practice ( WH Prof. Corp. ) in obtaining a Receivership Order in respect of WH Prof. Corp. 1

2 Grand Prairie Rainbow Automotive Ltd. (Receivership) Dean Hutchison and Dana Nowak acted as counsel to the primary secured creditor of Grande Prairie Rainbow Automotive Ltd., an automotive repair company, and related entities ( GP Auto ) in obtaining a Receivership Order in respect of GP Auto Alberta Inc. (Receivership) Dean Hutchison acts as counsel for the court-appointed receiver of Alberta Inc. ( 146 ), an Alberta corporation operating a fast-food franchise in Calgary. Dean obtained Court Orders finding the sole director of 146 in contempt of Court. As a result, the director spent time in prison for failure to provide documentation to, and to co-operate with, the receiver. Base Finance Ltd. (Receivership) Dean Hutchison and Megan Kheong acted for an investor in Base Finance Ltd. on a successful application to the Alberta Court of Queen s Bench for a declaration of a constructive trust for investors over monies held by Base Finance Ltd. and an Order directing a distribution to investors according to a specific tracing method. On appeal to the Alberta Court of Appeal, Dean and Megan succeeded in having the Order upheld and the appeal dismissed. INTERPROVINCIAL ASSIGNMENTS Edge Resources Inc. (Receivership) Jeff Lee, Dean Hutchison, Paul Olfert and Catrina Webster acted as counsel to the courtappointed receiver of Edge Resources Inc. ( Edge ), a Calgary-based oil exploration and production company (the Receiver ). Jeff Lee and Paul Olfert acted for the Receiver in obtaining court approval of and closing a sale by the Receiver of the Saskatchewan assets of Edge. Dean Hutchison and Catrina Webster acted for the Receiver in regard to the sale of the Alberta assets of Edge. Tuscany Energy Ltd. (Receivership & Bankruptcy) Jeff Lee, Dean Hutchison, Paul Olfert and Catrina Webster acted as counsel to the court-appointed receiver of Tuscany Energy Ltd. ( Tuscany ), a publicly-traded oil exploration and production company (the Receiver ). Jeff Lee and Paul Olfert acted for the Receiver in obtaining court approval of and closing a sale by the Receiver of the Saskatchewan assets of Tuscany. Dean Hutchison and Catrina Webster acted as counsel to the Trustee in Bankruptcy of Tuscany. BDO Canada Limited Purchase of Consumer Insolvency Practice of Deloitte J.J. Burnell and Paul Olfert acted as Manitoba counsel and Saskatchewan counsel, respectively, to BDO Canada Limited in effecting the transfer of several thousand bankruptcy estate files following BDO s purchase of the consumer insolvency practice of Deloitte Restructuring Inc. 2

3 SASKATCHEWAN ASSIGNMENTS Orr Centre ( Saskatchewan Ltd. and Saskatchewan Ltd.) (CCAA) Jeff Lee acts as counsel to the court-appointed CCAA monitor of two Saskatchewan corporations with real estate assets in Saskatoon and Regina. King Edward Apartments Inc. (Receivership) Jeff Lee and James Rose acted as counsel to a secured lender to King Edward Apartments Inc. ( KEAI ), a Saskatchewan real estate corporation developing a fivebuilding multi-family apartment project in Regina, in obtaining an Order appointing a receiver of KEAI on November 25,. Phenomenome Discoveries Inc. (Receivership) Jeff Lee and Paul Olfert acted as counsel to a secured lender to Phenomenome Discoveries Inc. ( PDI ), a Saskatchewan biotechnology company, in obtaining an Order appointing a receiver of PDI (the Receiver ). An application by the Receiver for an Order approving the sale of the assets of PDI was granted in September of. Golden Band Resources Inc. (BIA Division I Proposal) Jeff Lee and Paul Olfert acted as counsel to Golden Band Resources Inc. ( Golden Band ), a publicly-traded Saskatchewan corporation that previously owned and operated a gold mine near La Ronge, Saskatchewan. Golden Band filed a Notice of Intention to Make a Proposal under Division I of Part III of the BIA. Paul Olfert obtained an Order of the Court approving the sale by Golden Band of its shares to its principal secured creditor, vesting title to its shares in the name of the principal secured creditor and cancelling the extant shares previously issued by Golden Band to its shareholders. 3

4 MANITOBA ASSIGNMENTS Manitoba Farming Operation Bruce Taylor and J.J. Burnell acted as counsel to a large Manitoba farming operation in proceedings including a hearing under The Family Farm Protection Act and a Court appointed receivership. The operations and assets were sold following a sales process. An unsecured creditor (and successful bidder) argued that the sales process was not fair or equitable. The Manitoba Court of Appeal held that the Receiver had fully canvassed the market in an open, fair and transparent manner to all potential interested purchasers. The Court of Appeal determined that motions judge s decision approving the sale was reasonable, given the evidence before him. Apartment Building Receivership J.J. Burnell and Bruce Taylor acted as counsel to the mortgage lender of a company whose primary asset was an apartment building. An application to the Manitoba Court of Queen s Bench was successful in obtaining an Order appointing a receiver. Sale of Property By Mortgagee J.J. Burnell acted as counsel to the mortgage lender of a company whose primary asset was an apartment building outside Winnipeg. An application under The Unconscionable Transactions Relief Act was successfully defended and the apartment building was sold at auction. BRITISH COLUMBIA ASSIGNMENTS 4 IGW Industrial Limited Partnership (CCAA) Jeff Lee and Adam Kaukus acted for a creditor of IGW Industrial Limited Partnership, one of over 100 entities operating under a CCAA stay of proceedings in the British Columbia matter of Re. League Assets Corp. Jeff and Adam represented the creditor in its appeal of the disallowance of its claim for a $500,000 break fee in a November 18, hearing before the Supreme Court of British Columbia in Vancouver.

5 SPEAKING ENGAGEMENTS, PAPERS & OTHER MILESTONES Jeff Lee Saskatoon Jeff Lee delivered presentations to the Canadian Bar Association, Saskatchewan Branch, Bankruptcy Section entitled Arguing Lemare Lake at the Supreme Court of Canada and the Decision s Potential Impacts (April 6, ) and Court-Supervised Sale Processes and Standing of Various Parties in Insolvency Proceedings: Recent Trends and Notable Developments (October 5, ). JJ Burnell Winnipeg jburnell@mltaikins.com J.J. Burnell was appointed to the Executive of the Canadian Bar Association Insolvency Section and delivered a presentation entitled OMG, They re Insolvent! What Do We Do Now? Issues Facing Employers and Employees in Manitoba and co-presented with Bruce Taylor Insolvency and Restructuring and Your Practice. Dana Nowak Edmonton dnowak@mltaikins.com Paul Olfert Saskatoon polfert@mltaikins.com Catrina Webster Calgary cwebster@mltaikins.com 5 Dana Nowak presented on insolvency and tax issues, including to the CAIRP National Conference, to the AAIRP, to the CBA (Alberta North) tax section, and to the C(P)A Edmonton Club. In, Dana was re-elected co-chair of the CBA (Alberta North) Creditor and Debtor Law Section. Dana also lectured at the University of Alberta Faculty of Law on the topic of private practice and pro bono law. Paul Olfert assisted secured creditors, insolvency professionals, debtor companies and asset purchasers in insolvency matters to achieve optimal results in the courtroom and at the bargaining table. Catrina Webster s practice involves all aspects of corporate and commercial litigation, with a focus on restructuring and insolvency. Bruce Taylor Winnipeg btaylor@mltaikins.com Dean Hutchison Calgary dhutchison@mltaikins.com Bruce Taylor spoke to the Risk Management Association regarding What We Tell Borrowers In Financial Distress and co-presented with J.J. Burnell Insolvency and Restructuring and Your Practice. Dean Hutchinson oversees our Insolvency and Restructuring practice group in Alberta. Dean has acted for clients in insolvency and restructuring matters across Western Canada, including companies in financial distress, secured lenders, unsecured creditors and court officials. MLT Aikins LLP is a full-service law firm of approximately 240 lawyers with a deep commitment to Western Canada and an understanding of this market s unique legal, political and business landscapes. Based out of six key centres across the four western provinces, MLT Aikins is the only law firm to have offices in Winnipeg, Regina, Saskatoon, Calgary, Edmonton and Vancouver. MLT Aikins is the result of the merger of two widely respected and distinguished law firms, MacPherson Leslie & Tyerman LLP (MLT) and Aikins, MacAulay & Thorvaldson LLP (Aikins).