IEC-Audeamus
Status update as of December 20, 2019 – Receivership Proceeding
On December 20, 2019, the Court of Queen’s Bench of Alberta (the “Court”) denied the relief sought (including a further extension of the initial Stay of Proceedings) by IEC Ltd., Audeamus Capital Corp. and various other entities as listed on Schedule “A” below (collectively referred to as the “Applicants”) and the Non-Applicants listed on Schedules “B” and “C” below.
The Court granted an Interim Receivership Order (the “Receivership Order”) appointing Alvarez & Marsal Canada Inc. (“A&M”) as the receiver and manager (the “Receiver”) of the lands and premises and related property described in Schedule “C” of the Receivership Order, a copy of which can be accessed below.
The Receiver’s website for the proceedings is:
* Creditors and interested parties should now direct further inquiries to A&M’s Calgary office at albertaproperties@alvarezandmarsal.com or at 403-538-7555.
Companies’ Creditors Arrangement Act Proceeding
On December 10, 2019, the Applicants listed on Schedule “A” below (collectively referred to as the “Applicants”), being members of the real estate enterprise commonly known as the Strategic Group, made an application to the Court seeking protection under the Companies’ Creditors Arrangement Act (“CCAA”).
On December 10, 2019 a CCAA Initial Order (the “CCAA Order”) was granted by the Honourable Madam Justice K.M. Horner of the Court. The Court appointed Hardie & Kelly Inc. as Monitor of the CCAA proceedings (the “Monitor” or “H&K”). A copy of the relevant filing materials and the CCAA Order can be accessed below under the section entitled Court Orders and Filings.
The CCAA Order granted various relief to the Applicants, as well as to the parties listed on Schedules “B” and “C” below, who are not Applicants (the “Non-Applicants”), including the imposition of an initial Stay of Proceedings in favour of the Applicants and the Non-Applicants and their assets through to December 20, 2019.
Claims for payment for goods and services supplied to the Applicants prior to December 10, 2019 are suspended and creditors are prohibited from continuing or taking any actions or exercising any rights against the Applicants and Non-Applicants, except with leave of the Court. Under the CCAA Order, the Applicants are to continue to carry on business in a manner consistent with the commercially reasonable preservation of their businesses and assets.
Known creditors, as represented by the Applicants, were issued a notice of the CCAA Order from the Monitor, a copy of which correspondence can be found below. A schedule of the known creditors, listed by Applicant, according to the unaudited records of the Applicants, can also be found below.
Court Orders and Filings
The next Court application is scheduled for Thursday, December 19 at 2:00 p.m. at the Calgary Court Centre located at 515 – 6th Ave SW, Calgary, Alberta.
- Affidavit #1 of Riaz Mamdani – filed December 10, 2019
- Originating Application – filed December 10, 2019
- Brief of Law and Argument – filed December 10, 2019
- CCAA Initial Order – December 10, 2019
- Order (Sealing) – December 10, 2019
- Affidavit # 2 of Riaz Mamdani – December 16, 2019
- Application re: December 19, 2019 Court application
- Blackline Amended and Restated Initial Order
- Brief of Law and Argument of the Applicants (Volume 1 of 2)
- Brief of Law and Argument of the Applicants (Volume 2 of 2)
- Affidavit of David Lawson – December 18, 2019
- Affidavit of Greg Smith – December 19, 2019
- Application (Appointment of Receiver) – filed December 9, 2019
- Affidavit of Ricardo Estrada – December 9, 2019
- Supplemental Affidavit of Ricardo Estrada (redacted) – December 18, 2019
- Bench Brief (Sun Life Assurance Company of Canada) – filed December 18, 2019
- Affidavit of Karen Reddekopp – December 17, 2019
- Affidavit of George Mejury – December 18, 2019
- Notice of Application (Sealing Order) – filed December 18, 2019
- Affidavit of Valerie Lock – December 18, 2019
- Affidavit of Dawn Walby-Parchoma – Dec 18 2019
- Affidavit of Sandy Hayer – December 18 2019
- Affidavit of Jeff Burt – December 18, 2019
- Affidavit of Greg Gordichuk – December 18 2019
- Affidavit of Doug McLay – December 18, 2019
- Bench Brief (mortgagees) – December 18, 2019
- Amended Orginating Application (Appointment of Interim Receiver or other Receiver) – December 18, 2019
- Affidavit of Kunle Popoola – December 18, 2019
- Affidavit of Peter Dimakarakos – December 18, 2019
- Affidavit of Greg Asai – December 18, 2019
- Affidavit of Myriam MacLean – December 18, 2019
- Affidavit of J. Taha – December 19, 2019
- Affidavit #3 of Riaz Mamdani – December 19, 2019
- Amended and Restated CCAA Initial Order as of December 19, 2019
- Blackline Amended and Restated Initial Order as of December 19, 2019
- Affidavit of Jean Monardo – December 19, 2019
- Amended Originating Application (Appointment of Receiver or other Receiver) – December 19, 2019
- Order (Sealing) – December 19, 2019
- Affidavit #4 of Riaz Mamdani – December 20, 2019
- Interim Receivership Order – December 20, 2019
Monitor’s Reports
- Pre-Filing Report of Proposed Monitor – December 10, 2019
- First Report of the Monitor – December 17, 2019
Service List
Contact Information
Monitor – Hardie & Kelly Inc.
- Marc Kelly – 403-536-8510 or makelly@bdo.ca
Monitor’s legal counsel – Norton Rose Fulbright Canada LLP
- Howard Gorman – 403-267-8144 or Howard.Gorman@nortonrosefulbright.com
- Aaron Stephenson – 403-267-8290 or Aaron.Stephenson@nortonrosefulbright.com
Applicants’ legal counsel – McCarthy Tetrault LLP
- Sean Collins – 403-260-3531 or scollins@mccarthy.ca
- Walker MacLeod – 403-260-3710 or wmacleod@mccarthy.ca
- Pantelis Kyriakis – 403-260-3536 or pkyriakakis@mccarthy.ca