On November 9, 2023, Peoples Trust Company (PTC), the senior secured lender and principal source of financing for the Crown Crest Entities, initiated Companies’ Creditors Arrangement Act (CCAA) proceedings for 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. At the time, PTC was owed nearly $40 million under various warehouse loan agreements and secured debentures, with further exposure of approximately $279.7 million through lease financing arrangements.

The Crown Crest Entities, operating a vertically integrated HVAC equipment leasing and servicing business, faced significant liquidity challenges and were also involved in multiple litigation proceedings, including class actions.

KPMG Inc. was appointed as monitor, with PTC acting as the DIP lender. HWS Consulting Inc. (through Josef Prosperi and others) was named Chief Restructuring Officer.

Legal advisors involved in the proceedings include Gowling WLG for Peoples Trust Company, Miller Thomson and Stikeman Elliott for the Crown Crest Entities, Osler for the monitor, and Aird & Berlis for HWS Consulting Inc. (the CRO).

The CCAA process aims to provide Crown Crest Entities with an opportunity to seek additional capital and liquidity while exploring restructuring options