Dov (495 Richmond) Limited

The spiciest thread in this file: a creditor froze the company's bank accounts with a court injunction — and the company signed its assignment into bankruptcy the very same day.

The cash fight. Modern Commercial Rentals Ltd. got an interlocutory injunction under a Court Order dated March 23, 2026, freezing Vanwart Management Ltd.'s bank accounts. That's the same day the company signed its assignment for the general benefit of creditors (March 23, 2026), with the bankruptcy taking effect March 25, 2026 12. Modern Commercial Rentals then took the position that the accounts are property held in trust — meaning they wouldn't even belong to the bankrupt estate. The Trustee attended a hearing on April 7, 2026, and the Order is in process of being amended to let the funds move to the Trustee, but whether a "true trust" exists is still under review 2. Since cash is essentially the whole estate, this dispute is over the estate's most valuable asset.

A few other notes worth knowing, per the Trustee's Report to Creditors (April 9, 2026) 2:

• Modest assets, bigger debts. Total assets of $118,594 — the RBC cash plus a 2018 Ram 1500 (VIN 1C6RR7GTOJS176629) that appears unencumbered on the New Brunswick Personal Property Registry — against total unsecured creditors of $333,244 per the Statement of Affairs.
• Claims are trickling in. Only four proofs of claim had been filed as of the report, totalling $82,081, versus the $333,244 reported — so most creditors hadn't filed yet. The secured line reads $1 in the Statement of Affairs, which is an eye-catcher (Filed: Nil).
• The landlord is first in line. Holland Investments Ltd., the Company's landlord, filed a preferred claim of $6,900 under s. 136(1)(f) of the BIA for unpaid rent arrears in the three months before bankruptcy.
• Clean on wages. The Company's only employee got full wages, vacation pay, and proper termination notice, so the Trustee expects no wage-earner claims.
• Watch this space. The Trustee hasn't commenced any legal proceedings yet, but is reviewing the books for preferential payments or reviewable transactions (three months, or twelve for related parties) — and specifically whether the cash is trust property 2.

If you want to follow the cash dispute, the next documents to watch for would be the amended court order and the Trustee's follow-up on the trust question.

Short answer: nobody knows yet — that's the live issue in this estate. As of the newest filing (the Trustee's Report to Creditors, April 9, 2026), no determination has been made. Modern Commercial Rentals Ltd. takes the position that the RBC bank accounts are property held in trust and therefore not property of the bankrupt estate; the Trustee, for its part, is reviewing the Company's books and records to determine whether a "true trust" actually exists 1.

What the record establishes:

• The claim. Modern Commercial Rentals, a creditor, obtained an interlocutory injunction freezing the Company's bank accounts under a Court Order dated March 23, 2026 — the same day the assignment was signed 12.
• The interim mechanics. The Trustee attended a hearing on April 7, 2026, and the Order is in process of being amended to allow the funds to be transferred to the Trustee 1. So either way, the cash is moving to the Trustee's control — the trust question decides how it's ultimately treated, not who physically holds it right now.
• What's at stake. The Statement of Affairs shows $102,594.20 on deposit in financial institutions 2 — the bulk of the $118,594 estate (the rest is the 2018 Ram 1500) 1. The Trustee's estimated realizations expressly flag that unsecured creditors' recovery depends on "confirmation of whether the cash is trust property or property of the bankrupt estate" 1.

Who gets it if it is trust property? The filings don't say. They record Modern Commercial Rentals' position but don't identify the trust's beneficiary, terms, or origin. That answer would likely come from the Trustee's follow-up once its books-and-records review is complete, or from the amended court order.

As general background (not from these filings): under Canadian insolvency law, property held in a true trust doesn't vest in the trustee in bankruptcy — it's generally dealt with for the benefit of the trust's beneficiary rather than distributed to creditors. That's precisely why the distinction matters so much to unsecured creditors here.