Hardie & Kelly IEC-AudeamusIEC-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.

Monitor’s Reports

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