For the second time in two years, Nevada Bob’s Golf Inc., the Calgary-based golf specialty realtor, has filed for bankruptcy reorganization. Succumbing to the pressure of creditors owed almost $100 million in debts, CCAA proceedings were commenced in Calgary on October 25, 2000, while Chapter 11 proceedings under the U.S. Bankruptcy Code were filed on the same day at Fort Worth, Texas.
After filing for reorganization, the company hired the restructuring specialist Ozer Group to sell the company-owned stores and other assets to pay back Nevada Bob’s creditors. On November 20th, the Bankruptcy Court in Fort Worth approved the sale of 36 of the company-owned stores, including 17 to Texas-Tri-Capital Ventures. Only the 40 corporate-owned stores in Canada and the 42 stores in the US are involved in the bankruptcy proceedings, while the 82 franchised stores are unaffected.
Nevada Bob’s retained Brian P. O’Leary and Doug Nishimura of Burnet, Duckworth & Palmer (BD&P) for insolvency law advice, and Bruce Allford and Mike Sandrelli of BD&P for commercial advice. The Court appointed Monitor in the Canadian proceedings is Kurt Bonokoski of PricewaterhouseCoopers, who is represented by Frank Dearlove of Bennett Jones LLP. Patrick McCarthy, Q.C. of Borden Ladner Gervais LLP represents certain secured creditors. Clifford Shaw, Q.C., of Field Atkinson Perraton represents the creditors’ committee.
McMillan Binch lawyers Jeff Gollob and John Kalm (corporate/financial services), with some assistance from Andrew Kent (corporate/financial) and Paul Macdonald (litigation), are advising Foothill Capital Corporation, the senior secured lender to Nevada Bob’s in connection with its loans to the company as well as a debtor-in-possession loan put in place for the company while it attempts a complete restructuring.