Insolvency | Guzzo once again evokes a lifeline

Hounded by creditors who want to take control of his cinemas, Vincent Guzzo claims to be talking with investors ready to come to the rescue of the family business, which is increasing its payment defaults. It remains to be seen whether this argument will be enough to convince the court.

“There is a discussion with two groups who would come together,” Mr. Guzzo testified on Tuesday before the Superior Court of Quebec. I would tell you that, for the moment, everyone is working hard. »

However, he had few details to offer to judge Michel Pinsonnault, who was hearing the request from CIBC Bank, the main creditor of the Guzzo Group. The institution wants the group to be placed in receivership, which could lead to its liquidation.

If the magistrate rules in favor of the plaintiffs, an administrator appointed by the court – a representative of the Raymond Chabot firm – would find himself in control of the Quebec group. The chain’s cinemas would continue their activities.

This process would notably allow the complainant to scrutinize the finances of the family business. For several years, it has been difficult to get the facts straight, deplores the financial institution. CIBC alleges it did not receive audited financial statements from Guzzo after 2021.

“I have an overall picture, but I am far from having answers to all my questions because we had access to information summarized in financial statements that are not audited,” explained the representative of Raymond Chabot , Dominic Deslandes. We did not have detailed information on the operating costs of an entity like this. So, I obviously have a lot of questions to ask the leaders. »

At the foot of the wall

Time is running out for the largest independent owner of cinemas in Quebec. CIBC is asking him for 38 million.

In his request under the Bankruptcy and Insolvency Law (LFI), the financial institution says it announced to the group in August 2023 that it intended to cut its ties with it, after procedures taken by the City of Laval to recover unpaid taxes. She then allegedly tried to discuss several times to have her loans repaid.

Mr. Guzzo, who disputes the bank’s claims, says the “honeymoon” between his company and the financial institution ended in October 2021. He criticizes CIBC for its intransigence towards his company as part of refinancing efforts, without providing supporting documentation to the court.

The president and CEO of the Quebec chain alleges that the Toronto bank put obstacles in his way over the past year as part of his negotiations with potential lenders who were also clients of CIBC.

“According to some people at CIBC, I was very uncomfortable, like no other,” said Mr. Guzzo about a transaction that did not see the light of day at the last moment. “The person has [reculé au dernier moment]. »

The cross-examination of the businessman was the scene of multiple clashes with the bank’s lawyer, Mr.^e Hugo Babos-Marchand. The latter notably criticized the leader of Guzzo for being in “hearsay” and for not respecting the “rules of basic evidence” when he spoke.

Tens of millions at stake

Last October, The Press reported that CIBC and the private lenders of the Quebec cinema operator were demanding more than 60 million from it.

The Equitable Bank says it wants to recover nearly 16 million from two companies in the group, which it considers “insolvent” in its notices filed with the land register. Q-12 Capital and Q-8 Capital, from Quebec, are claiming nearly 10 million from the same companies.

During a hearing which took place on November 15, representatives of Revenu Québec also mentioned debts of 6.7 million and those of Ottawa, of 1.4 million.

Lawyers for Cinémas Guzzo and CIBC will meet before Judge Pinsonneault this Wednesday for pleadings.