The Montreal Solution Highpoint, a major player in the cinema and event industry in Quebec, is going through one of the worst crises in its history behind the scenes, Le Journal has learned.
Following a request from the National Bank (BN), the court urgently ordered the appointment of a receiver, which has since taken control of the company, fired its CEO, and put the company up for sale. all of its assets.
This is how the company, founded in 2007 by entrepreneur Jean-François Dubé, could be liquidated in whole or in part within a few weeks by Raymond Chabot, the firm retained in this file to act as receiver. .
Located in the borough of Anjou, Montreal, Highpoint specializes in the rental and installation of rigging equipment for film and television studios in the Montreal area.
The film and series teams (X-Men, Transformers, Three Pinesetc.) produced by Netflix, Sony and Amazon frequently require its services.
More recently, it has expanded its range of offers by renting stages and infrastructure for major events, such as the F1 Grand Prix, the Montreal Jazz Festival, or the Quebec City Summer Festival.
Erroneous debts and accounting
In March 2021, Highpoint announced the introduction into its shareholding of the Culture and Communications Investment Fund (FICC) – a rare venture capital fund dedicated exclusively to cultural industries –, as well as financing of 4.35 million from the BN.
This injection, it was written, was to enable it “to acquire new equipment and offer a wider range of services to local and foreign productions”. Obviously, the sequel did not go as planned. Eighteen months later, the company would be struggling with liabilities of some $15 million, including more than $11 million in debts to the BN.
Worried, the financial institution argued in Superior Court that it had also noted unjustified disbursements – nearly $900,000 – made without its knowledge, resulting in a major and rapid deterioration in the company’s liquidity.
Thus, during the first three months of 2022, the working capital of the company has melted by $ 2.3 million, explains the report of the receiver, consulted by Le Journal.
The latter bluntly suggests, moreover, that management kept “erroneous accounting”, with the consequence of misleading its lender regarding its true financial performance.
From shareholder to creditor
“I find it all very unfortunate. […] Sometimes there are things that you learn after the fact, ”reacted the general manager of the FICC, Robert Chartier, claiming to have recently withdrawn from the shareholding.
“We are now part of the creditors,” he says, refusing to disclose the extent of the losses envisaged.
Jean-François Dubé, president removed from office (with his VP finance, Claude Dubé), did not respond to our interview request yesterday. The same applies to representatives of Raymond Chabot.
Investors interested in all or part of Highpoint’s assets have until September 12 to come forward. If all goes as planned, all of these assets – including the contracts – will have found takers by October.
SOLUTION HIGHPOINT
- Foundation in 2007
- Founder: Jean-Francois Dube
- Turnover: $12M in 2022
- Among the assets: $19 million in rental equipment, $3 million in trailers, trailers and rolling stock
- Warehouses in Montreal, Laval and Quebec