Do All Industries placed into receivership
Over 150 people in both Estevan and Nisku, Alta. are out of work after Do All Industries was placed into receivership earlier this month.
President Bryn Jones said the fabricating company had a receiver appointed by the court on behalf of its secured creditors, and operations at the two locations have ceased.
“As such the receiver is making the decisions as to whether the operations continue or don’t,” Jones said. “(The Estevan operation) is closed. It ceased operations on (Feb. 6).”
Jones estimated that 155 people employed by Do All Industries have been laid off, but he could not provide a break down of how many worked at the Estevan and Nisku operations. Asked whether or not those employees will receive their final paycheques, Jones said that is a question for the receiver.
According to information obtained by the Mercury, the National Bank of Canada filed a notice of application asking for the appointment of a receiver, in Alberta Court of Queen’s Bench on Feb. 6 against Do All Industries, P&O Assets (also described in the documents as the Do All Group) and Korf Developments Limited.
Alvarez and Marsal Canada has been appointed receiver of the three companies. On the Alvarez and Marsal web site, it notes that pursuant to the court order, “the receiver is appointed over all of the Do All Group’s current and future assets, undertakings and properties of every nature and kind whatsoever, and wherever situated, including all proceeds thereof.”
According to the application filed by the National Bank of Canada, the bank advanced various loans to Do All after a credit agreement was reached on Jan. 28, 2013.The application says that Do All is in default under the terms of the credit agreement and a subsequent forbearance agreement.
“Do All has, among other things, failed to make due and punctual payment of any principal amount, interest or fees due under the credit agreement, failed to eliminate a borrowing base shortfall, failed to comply with various financial covenants and reporting covenants and entered into transactions with affiliates with a view to limiting collateral value of the bank.”
In all, the application states that Do All owes the National Bank CDN$30.69 million as well as USD$10.12. It also notes that the bank has lost confidence in Do All’s ability to manage its business and requires the appointment of a receiver and manager over Do All and P&O to oversee the wind down of operations and to conduct an orderly realization of both entity's assets.
Furthermore, it notes Do All has advised the bank through its legal advisers that the company has no viable restructuring options available and that its account was in overdraft to the point where it would not be able to meet its payroll on Feb. 7.
The documents also include the receivership order, which lays out the powers of the receiver
Do All was established in 2000 by Estevan resident Kordell Korf. The company had enjoyed significant growth since it was founded, becoming one of the leading providers of various oilfield products including complete drilling rigs.
Along with the operation in Nisku, Do All also opened a location in Glenburn, North Dakota. It was not made clear in any of the documents if the receivership notice impacted the U.S. operation.