A number of former employees and local businesses were among those who were left in the lurch by the closure of Do All Industries in February, who owed millions of dollars to hundreds of creditors.
Do All was placed into receivership early this year, and that left more than 150 employees between Estevan and Nisku, Alta. out of work.
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 as the Do All Group) and Korf Developments Limited.
The application stated that Do All owed the National Bank CDN$30.69 million as well as USD$10.12. It also noted the bank had lost confidence in Do All's ability to manage its business and would require 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.
The application said Do All was in default under the terms of a Jan. 28, 2013 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,” said the application.
Alvarez and Marsal Canada was appointed receiver of the three companies. 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.
Among those owed money were Do All's former employees. The roughly 155 people who worked at both the Estevan and Nisku operations were owed a combined $288,347. The range of money owed stretched from a high of $14,600 to as low as $222.
A list of unsecured creditors was an extensive one and read like an Estevan business directory as dozens of local operations were owed money, $8.19 million in all.
Again, the range of money owed is wide with some businesses owed as little as $9 while others are owed over $1 million.
Topping the list was $1.44 million owed to Southern Industrial and Truck Ltd. of Weyburn.
Other figures of note were $704,793 owed to the Receiver General, $128,949 to the Tax and Revenue Administration, Alberta Treasury Board and Finance and roughly $74,000 to the City of Estevan. Overall, there were 13 businesses or governmental entities owed six-figure sums.
