A Canadian glass company has collapsed following the appointment of a court-ordered receiver after it could not repay loans for certain glass production equipment leased to and used by the now-defunct Naverra Glass.

Court documents state that Antamex leased equipment purchased with proceeds from an EDC loan to Naverra, which proceeded to shutter.

The Ontario Superior Court of Justice appointed Deloitte Restructuring Inc. as the receiver over the right, title and interest of Toronto-based Antamex Industries. Antamex designed, engineered, manufactured and installed custom, modular glass façade solutions for multi-story buildings. The company was divested from Oldcastle BuildingEnvelope in 2019 to New York City-based private investment company O3 Industries.

According to court documents, Deloitte is now the receiver of the “assets, undertakings and properties of Antamex relating to the Export Development Canada (EDC) priority collateral and leased equipment acquired for or used in relation to a business carried on by Antamex and leased and used by Naverra, at the Norwich, Connecticut, glass plant.”

Court documents state that Antamex leased equipment purchased with proceeds from an EDC loan to Naverra, which shuttered in late 2023. The company was evicted from the Norwich plant in June 2023 for non-payment of rent and failure to replenish a security deposit. The Connecticut Superior Court ruled in November 2023 to grant the Norwich plant landlord possession of the facility.

The landlord took possession of the 180,000-square-foot glass fabrication plant around Jan. 3, 2024, changing the locks and blocking all access to equipment, including Antamex’s leased equipment. Naverra’s closure also meant it could not honor EDC’s loan guarantee, constituting a default. This followed Naverra’s (then Solar Seal) guarantee on Dec. 17, 2021, the “prompt and complete payment and performance of Antamex’s obligation to EDC to repay the debt.”

EDC officials said Naverra’s actions “have had a materially adverse effect on Antamex’s operations and Naverra’s ability to honor the EDC guarantee and constitute an event of default under the EDC loan documents.”

As a result, Antamex soon defaulted on its obligations to EDC because, as legal documents indicate, it has caused or allowed:

  • Naverra to cease all or a substantial portion of its business operations without the prior written consent of EDC;
  • Caused or allowed Naverra to default on its obligations under the Norwich lease, which has resulted in the landlord repossessing the Norwich glass plant; and
  • Has failed to deliver its financial statements to EDC in accordance with its obligations under the Third Amendment to the EDC credit agreement.

EDC notified Antamex in January 2024 of the defaults and demanded payment in full. Court officials said that, to date, Antamex has not repaid its debt owed to EDC. As of Feb. 20, 2024, the amount owed totaled $10,462,962.93, including interest and fees accrued.

Officials said that near the end of January 2024, EDC determined that Antamex would soon exhaust its liquid assets and would further erode the company’s value. Officials also claimed that Antamex does not have the resources or intent to protect its ownership interest in the leased equipment stowed at Naverra’s former plant.

Antamex and Naverra officials attempted to find a buyer for the least equipment. One interested buyer submitted a non-binding letter of intent in December 2023. EDC officials advised Antamex that they would not support the transaction due to the length of repayment and a requirement that Antamex incur “significant obligation and liabilities, the value of which far exceed the purchase price.”

Towards the end of January 2024, Antamex officials told EDC that the company had insufficient liquidity to continue operating beyond February 2024 and could not pay its legal counsel. Antamex searched for additional funding but failed.

Leave a Reply

Your email address will not be published. Required fields are marked *