The gyproc king’s company has just declared bankruptcy with debts of $26 million, nearly a third of which is owed to a contractor who allegedly paid for dancers, alcohol, trips and a boat for him.
BMNJ Interior Systems, one of the biggest players in the installation of gyproc in Quebec, took shelter from its creditors last week.
Among more than 100 unsecured creditors, the largest is a company owned by Alexandre Arseneault, an entrepreneur and trained firefighter, to whom BMNJ alone owes $8.2 million.
Alexandre Arseneault and his partner Mélissa Arcand. Photo credit: photo taken from Mélissa Arcand’s Facebook account
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According to other court documents, Arseneault, his wife Mélissa Arcand and related companies had a transaction approved in December for a debt of a similar amount owed to them by Hugo Bernard, BMNJ and other companies.
Among the amounts advanced were alcohol for $631, a dancer for $1,100, a swimsuit and an overcoat for $1,095, payments for a boat, as well as expenses for trips to the South.
A bench seat in a restaurant for employees would also have cost nearly $45,000 alone.
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The documents consulted also indicate a debt of $838,000 to an individual named Stéphane Ménard, and two payments totaling $5,000 for interest on a debt to a man named C Ménard.
Arseneault also claims to have the right to shares in Bernard’s real estate projects worth $26 million.
In a formal notice dated September, Arseneault claimed to have suffered the bad influence of Hugo Bernard.
“Hypnotized by your promises, your guarantees, your stratagems and your exuberant lifestyle, Mr. Arseneault engages, without compromise, in this unhealthy and toxic relationship for him, his family and his businesses,” wrote his lawyer.
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In February, our Bureau of Investigation reported that businessman Rhéal Dallaire, close to the Hells Angels, had secretly managed BMNJ and attempted to acquire it.
The facade of the BMNJ Interior Systems building located on rue Bernard-Lefebvre, in Laval, on Wednesday February 14, 2024. Photo Agence QMI, JOEL LEMAY
Photo Agence QMI, JOEL LEMAY
Two months earlier, we lifted the veil on Hugo Bernard’s alleged ultra-luxurious lifestyle, with escorts, drug use, extravagant parties and luxury cars, which allegedly caused him financial problems.
Since then, the FTQ Solidarity Fund has asked that BMNJ be excluded from two major projects, namely the Solar on the South Shore and the Maestria in the city center.
According to bankruptcy documents, Hugo Bernard’s firm has assets totaling $8.3 million, for a solvency deficit of nearly $18 million.
BMNJ owes, among other things, more than $5 million to the Laurentian Bank, which initiated receivership proceedings for the firm in mid-February after losing confidence in its management.
BMNJ owes at this stage more than $300,000 in unpaid salaries to its employees, according to trustee Mathieu Roy. More than 200 employees have lost their livelihood since February 8, according to him.