Peoples Trust Company Initiates Companies’ Creditors Arrangement Act Proceedings for Crown Crest Entities

On November 9, 2023, Crown Crest Financial Corp., Simply Green Home Services Inc., Simply Green Home Services Corp., Crown Crest Capital Management Corp., Crown Crest Funding Corp. and Crown Crest Capital Trust (collectively the "Crown Crest Entities") entered into proceedings under the Companies’ Creditors Arrangement Act pursuant to an urgent application brought by Peoples Trust Company ("PTC"). PTC is the Crown Crest Entities’ senior secured lender and principal source of financing.

The Crown Crest Entities are a group of privately held companies that operate a vertically integrated HVAC equipment leasing and servicing business. The Crown Crest Entities were facing significant near-term liquidity challenges. As of September 30, 2023, PTC was owed nearly $40,000,000 under various warehouse loan agreements and secured debentures, and had further exposure pursuant to certain lease financing arrangements in the amount of approximately $279,655,155. In addition, the Crown Crest Entities were involved in various litigation proceedings, including two class action proceedings, and is likely impacted by legislative updates under the Consumer Protection Act, 2023 (Ontario).

Pursuant to the initial order of the Ontario Superior Court of Justice (Commercial List), KPMG Inc. was appointed as monitor. PTC is acting as the DIP lender and HWS Consulting Inc. (acting through Josef Prosperi and others) is the Chief Restructuring Officer.

Aird & Berlis is representing HWS Consulting Inc. with a team that includes Steven Graff, Miranda Spence and Samantha Hans (Financial Services).