#Distribution
Distribution and Bankruptcy Order signed by Justice Kershman October 5, 2026 — Distribution order
1382769 Ontario Ltd. & 1622354 Ontario Ltd. et al.
ActiveFollow
- Proceeding
- ProposalSection 50.4(1) of the Bankruptcy and Insolvency Act
- Court
- Ontario Superior Court of Justice · Commercial List
- File
- 33-3368241
Filings held25
Last activity5 Oct 2026
On the record188 days
OverviewSummary updated
1382769 Ontario Ltd. & 1622354 Ontario Ltd. et al. filed a notice of intention to make a proposal on 1 May 2026 under section 50.4(1) of the Bankruptcy and Insolvency Act, in the Ontario Superior Court of Justice at Kingston, with Albert Gelman Inc. as trustee. The companies state that they are current on all pre-filing and post-filing obligations except for claims by the Canada Revenue Agency, stated as unsecured at $2,272,177.33 and $1,137,404.24. The proceeding is carried on court files 33-3368241 and 33-3368242.
Proceedings AIOpen Proceedings AI
Case updates27 dated entries
#Report
Fifth Report: the sale closed September 14, 2026 to assignee 15870437 Canada Inc.; the companies no longer operate and the Trustee seeks a distribution to CRA and termination of the proposal period.
Source: Fifth Report of the Proposal Trustee dated September 29, 2026
#Filing
Motion Record of the Proposal Trustee (for motion returnable October 5, 2026) — Application / notice of application
#Sale
The court granted an approval and vesting order for the sale to 7055579 Canada Inc. Closing terms, as extracted: Vesting effective upon delivery of Proposal Trustee's Certificate confirming payment of Purchase Price, satisfaction/waiver of closing conditions, and completion of the Transaction.
Source: Court Order of Justice C. Macleod dated September 9, 2026 (Approval and Vesting Order)
#Report
Fourth Report of the Trustee: no bids by the August 20, 2026 deadline, so 7055579 Canada Inc.'s $2,300,000 stalking horse offer was deemed the successful bid, with approval and a vesting order sought; both restaurants keep operating.
#Filing
Motion record of the Debtor (for motion returnable September 9, 2026) — Application / notice of application
#Order
Justice C. MacLoed granted an order on August 24, 2026 extending the stay in the proposal proceedings to October 12, 2026.
Source: Court Order of Justice C. MacLoed dated August 24, 2026 (Extension of Time)
#Report
Third Report: no bids by the August 20, 2026 deadline from 17 parties solicited and four NDAs; sought approval of Trustee fees of $94,471 for April 29 to August 14, 2026.
Source: Third Report of the Proposal Trustee (for motion returnable August 24, 2026)
#Filing
Notice of Motion of the Debtor (for motion returnable August 24, 2026) — Application / notice of application
#Order
The court approved a sale and investment solicitation process. A bid deadline of 2026-08-20.
Source: Approval Order signed by Justice K Perron dated July 13, 2026
#Order
An interim order in the proposal proceedings was granted on 13 July 2026.
Source: Second Stay Extension Order signed by Justice K Perron dated July 13, 2026
#Order
Interim order granted in the proceedings of both restaurant operators, the only order recorded since the notices of intention were filed on May 1, 2026.
Source: Second Stay Extension Order signed by Justice K Perron dated July 13, 2026
#Report
Second Report of the Proposal Trustee (for motion returnable July 13, 2026) — Court officer report
#Filing
1382769 Ontario Limited, operating as Kelsey’s Gardiners Restaurant, and 1622356 Ontario Limited, operating as Montana’s Restaurant — NOI filed, Ontario.
AnalysisAll insights
Case update
Kelsey's and Montana's: the trust money now, the bankruptcies after
The $2,300,000 sale of the two Kingston restaurants closed on September 14. Of CRA's $3,626,089.20 in claims, the trustee says only $133,793.12 of source-deduction principal, all owed by the Montana's company, carries a deemed trust. On October 5 it will ask to pay that now, then to end the proposal period, deeming both companies bankrupt.
Case update
Kelsey's and Montana's: the 2025 buyer, at the 2025 price
Seventeen parties approached, four in the data room, no bids by August 20. On September 9 the court approved the $2,300,000 sale of the two Kingston restaurants to the Recipe franchisee that had agreed to buy them before they filed, and the proceeds are bound for the Canada Revenue Agency, whose two proofs of claim total $3,626,089.20.
Filing brief
Kelsey's and Montana's: two profitable restaurants filed anyway
Two franchised restaurants in adjacent units of the same Kingston mall, sharing an owner and a hundred employees, filed notices of intention on the same day. Their fifteen-week cash flow forecasts both project a net inflow. What they cannot pay out of that margin is the HST they collected and did not remit.
Parties
Debtor
1382769 Ontario Ltd. & 1622354 Ontario Ltd.
Proposal trustee
Albert Gelman
Bench and counselPer the orders and service lists on the record
Bench
| Judge | Court | On this docket | Cases on record |
|---|---|---|---|
| Justice MacLeod | Ontario Superior Court of Justice | 4 orders, Aug 2026 – Sep 2026 | 22 cases on record |
| Justice Perron | Ontario Superior Court of Justice | 3 orders, Jul 2026 | 3 cases on record |
Counsel of record
| Party | Counsel | First seen | Source |
|---|---|---|---|
| Proposal trusteeAlbert Gelman | Miller Thomson LLP | 19 May 2026 | Application · 14 May 2026 |
| Debtor1382769 Ontario Limited, operating as Kelsey’s Gardiners Restaurant, and 1622356 Ontario Limited, operating as Montana’s Restaurant | Perley-Robertson, Hill & McDougall LLP/s.r.l. | 18 May 2026 | Factum · 18 May 2026 |
| CreditorMatthew Cressatti | Miller Thomson LLP | 13 Jul 2026 | Application · 3 Jul 2026 |
Capital structureAs asserted in the filings
| # | Priority class | Creditor | Amount | Source |
|---|---|---|---|---|
| 3 | Deemed trusts (CRA and other) | Canada Revenue Agency – deemed trust (source deductions principal)Deemed trust under ITA ss. 227(4)/(4.1), CPP ss. 23(3)/(4), EIA ss. 86(2)/(2.1); preserved by BIA s. 86(3) / s. 67(3) — Deemed trust (quasi-governmental) claim per CRA proof of claim dated May 19, 2026; ranks ahead of all other claims against the Net Proceeds other than amounts secured by the Administration Charge. KelseyCo owes $0.00 source deductions principal (no deemed trust). Penalties and interest on source deductions ($82,714.51 MontanaCo; $25.61 KelseyCo) are not covered by the deemed trust. CRA does not oppose the motion. — debtor: MontanaCo (1622356 Ontario Limited) · as of 19 May 2026 | $134K | Motion Record of the Proposal Trustee (for motion returnable October 5, 2026) |
| 4 | Secured | |||
| 4 | Secured | |||
| 4 | Secured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured |
9 more claims in 2 classes The stack holds Deemed trusts (CRA and other), Secured and Unsecured claims.
Every creditor and every amount, drawn to scale.
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See all plansSale processAs stated in the filings
Sale closed — The Transaction under the Stalking Horse APA closed on September 14, 2026 and the Purchased Assets vested in the Purchaser upon delivery of the Trustee's Certificate.Fifth Report of the Proposal Trustee dated September 29, 2026 · 29 Sep 2026
| Purchaser | Price | Status | Source |
|---|---|---|---|
| 7055579 Canada Inc.Stalking horsethe Debtors' right, title and interest in and to the assets described in the Sale Agreement (the "Purchased Assets") · asset sale · nominee/assignee: 15870437 Canada Inc. · agreement 16 Jun 2026 | Subscribers | Closed14 Sep 2026 | Fifth Report of the Proposal Trustee dated… |
AdvisorsAlbert Gelman Inc. (sale agent)Approval Order signed by Justice K Perron dated July 13, 2026
Closing termsVesting effective upon delivery of Proposal Trustee's Certificate confirming payment of Purchase Price, satisfaction/waiver of closing conditions, and completion of the TransactionCourt Order of Justice C. Macleod dated September 9, 2026 (Approval and…
RecoveriesAs stated in the filings
CRA: a distribution.Fifth Report of the Proposal Trustee · 29 Sep 2026
| Class | Creditor | Claims | Recovery | Basis | Source |
|---|---|---|---|---|---|
| Deemed trust | CRA | — | per the proposal trustee | Fifth Report of the Proposal Trustee · 29 Sep 2026 |
Each row is one filing's statement, copied as it reads and never computed. "Estimated" is the officer's forecast; "Under the plan" is the plan's or proposal's own term; "Final" is a declared or paid distribution; a row with no chip states no footing. A range is the two numbers stated; "of proven claims" is the document's own denominator.
1 blurred figure above
The claims and what each class or creditor recovers — each as the filing states it, with its source.
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See all plansFees and ratesAs stated in the filings
10 engagements · 2 firms — latest: Albert Gelman Inc., 1 Aug – 1 Sep 2026Fourth Report of the Proposal Trustee dated September 4, 2026 (for… · 4 Sep 2026
| Firm | Period | Hours | Fees | Rates | Source | |||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Albert Gelman Inc.Trusteeperiod 6 of 6 | 1 Aug – 1 Sep 2026Sought | — | — | Fourth Report of the Proposal Trustee dated September 4, 2026 (for… · 4 Sep 2026 | ||||||||||||||||||||||||||||||||||||||||||||||
| Albert Gelman Inc.Trusteeperiod 5 of 6 | 29 Apr – 14 Aug 2026Sought | — | — | Third Report of the Proposal Trustee (for motion · 18 Aug 2026 | ||||||||||||||||||||||||||||||||||||||||||||||
| Albert Gelman Inc.Proposal trusteeperiod 5 of 6 | to 14 Aug 2026 | — | 6 people | Third Report of the Proposal Trustee (for motion · 18 Aug 2026 | ||||||||||||||||||||||||||||||||||||||||||||||
6 people — Albert Gelman Inc., to 14 Aug 2026 · 18 blurred figures
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| Albert Gelman Inc.Proposal trusteeperiod 3 of 6 | to 30 Jun 2026 | — | 7 people | Third Report of the Proposal Trustee (for motion · 18 Aug 2026 | ||||||||||||||||||||||||||||||||||||||||||||||
7 people — Albert Gelman Inc., to 30 Jun 2026 · 21 blurred figures
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| Albert Gelman Inc.Proposal trusteeperiod 2 of 6 | — | — | 8 people | Third Report of the Proposal Trustee (for motion · 18 Aug 2026 | ||||||||||||||||||||||||||||||||||||||||||||||
8 people — Albert Gelman Inc. · 24 blurred figures
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| Albert Gelman Inc.Proposal trusteeperiod 2 of 6 | — | — | 6 people | Third Report of the Proposal Trustee (for motion · 18 Aug 2026 | ||||||||||||||||||||||||||||||||||||||||||||||
6 people — Albert Gelman Inc. · 18 blurred figures
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| Miller Thomson LLPCounsel to the trusteeperiod 4 of 4 | 7 Aug – 31 Aug 2026 | — | not stated | Fourth Report of the Proposal Trustee dated September 4, 2026 (for… · 4 Sep 2026 | ||||||||||||||||||||||||||||||||||||||||||||||
| Miller Thomson LLPCounsel to the trusteeperiod 3 of 4 | 31 May – 31 Jul 2026Sought | — | not stated | Third Report of the Proposal Trustee (for motion · 18 Aug 2026 | ||||||||||||||||||||||||||||||||||||||||||||||
| Miller Thomson LLPCounsel to the trusteeperiod 2 of 4 | 13 May – 28 Jul 2026Sought | 4 people | Third Report of the Proposal Trustee (for motion · 18 Aug 2026 | |||||||||||||||||||||||||||||||||||||||||||||||
4 people — Miller Thomson LLP, 13 May – 28 Jul 2026 · 12 blurred figures
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| Miller Thomson LLPCounsel to the trusteeperiod 1 of 4 | to 30 Jun 2026 | — | 3 people | Third Report of the Proposal Trustee (for motion · 18 Aug 2026 | ||||||||||||||||||||||||||||||||||||||||||||||
3 people — Miller Thomson LLP, to 30 Jun 2026 · 9 blurred figures
| ||||||||||||||||||||||||||||||||||||||||||||||||||
119 blurred figures above
What each firm billed, and each person’s hours and rate — each as the filing states it, with its source.
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See all plansEstate financialsReported figures — never derived
Cash on hand
$2.06M
As at 29 Sep 2026Fifth Report of the Proposal Trustee dated September 29, 2026
Professional fees
As at
1 more reported figure
Each one as the filing states it, with its source.
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See all plansDocuments
25 filings
| Date | Document | File |
|---|---|---|
Distribution and Bankruptcy Order signed by Justice Kershman October 5, 2026
| PDF · Subscribers | |
| Factum of the Proposal Trustee (for motion returnable October 5, 2026) | PDF · Subscribers | |
Fifth Report of the Proposal Trustee dated September 29, 2026
| PDF · Subscribers | |
Motion Record of the Proposal Trustee (for motion returnable October 5, 2026)
| PDF · Subscribers | |
Court Order of Justice C. Macleod dated September 9, 2026 (Ancillary Order)
| PDF · Subscribers | |
Court Order of Justice C. Macleod dated September 9, 2026 (Approval and Vesting Order)
| PDF · Subscribers | |
Factum of the Debtors (for motion returnable September 9, 2026)
| PDF · Subscribers | |
Fourth Report of the Proposal Trustee dated September 4, 2026 (for motion returnable September 9, 2026)
| PDF · Subscribers | |
| Motion record of the Debtor (for motion returnable September 9, 2026) | PDF · Subscribers | |
Court Order of Justice C. MacLoed dated August 24, 2026 (Extension of Time)
| PDF · Subscribers | |
Endorsement of Justice C. MacLoed dated August 24, 2026
| PDF · Subscribers | |
Factum of the Debtor (for motion returnable August 24, 2026)
| PDF · Subscribers | |
Notice of Motion of the Debtor (for motion returnable August 24, 2026)
| PDF · Subscribers | |
Third Report of the Proposal Trustee (for motion returnable August 24, 2026)
| PDF · Subscribers | |
Approval Order signed by Justice K Perron dated July 13, 2026
| PDF · Subscribers | |
Endorsement of Justice K Perron dated July 13, 2026
| PDF · Subscribers | |
Second Stay Extension Order signed by Justice K Perron dated July 13, 2026
| PDF · Subscribers | |
Factum of the Debtors (for motion returnable July 13, 2026)
| PDF · Subscribers | |
Second Report of the Proposal Trustee (for motion returnable July 13, 2026)
| PDF · Subscribers | |
Supplementary Motion Record (returnable July 13, 2026)
| PDF · Subscribers | |
Motion Record (returnable July 13, 2026)
| PDF · Subscribers | |
Order signed by Justice M. Smith dated May 19, 2026
| PDF · Subscribers | |
Factum dated May 18, 2026
| PDF · Subscribers | |
First Report of the Proposal Trustee dated May 17, 2026
| PDF · Subscribers | |
Notice of Motion (returnable May 19, 2026)
| PDF · Subscribers | |
Filing titles and dates are public, and so is each filing's own page. The figures read from them are for subscribers.
CiteProceedings., “1382769 Ontario Ltd. & 1622354 Ontario Ltd. et al.” (Proposal), Ontario Superior Court of Justice · Commercial List. Retrieved 4 November 2026, https://proceedings.ca/case/1382769-ontario-ltd-1622354-ontario-ltd