Allen-Vanguard Corporation and Allen-Vanguard Ltd. were placed in receivership on September 1, 2026, when the Ontario Superior Court of Justice (Commercial List) appointed PricewaterhouseCoopers Inc. as receiver and manager on the application of Contego AV Funding II, LLC and Contego AV Funding II-A, LLC. The appointment was made under section 243(1) of the Bankruptcy and Insolvency Act and section 101 of the Courts of Justice Act.
Approved the September 9, 2026 Subscription Agreement with Allen Vanguard International Limited and the reverse vesting of the business, closing on delivery of the Receiver's Certificate, with excluded assets moving to 1001752237 Ontario Inc.
Source: Approval and Vesting Order
A further order of Justice W.D. Black dated September 1, 2026 was made in the same proceeding.
Justice W.D. Black appointed PricewaterhouseCoopers Inc. receiver and manager of Allen-Vanguard Corporation and Allen-Vanguard Ltd. on the applicants' application, by order made September 1, 2026.
Source: Receivership Order
Contego AV Funding II, LLC and Contego AV Funding II-A, LLC applied on August 28, 2026 for the appointment of PricewaterhouseCoopers Inc. as receiver under section 243(1) of the Bankruptcy and Insolvency Act, court file CL-26-00000383-0000.
Outcome brief
Allen-Vanguard: Justice Black grants a reverse vesting order in a receivership
On September 25 Justice W.D. Black approved PwC's reverse vesting transaction for Allen-Vanguard with Allen Vanguard International Limited, finding jurisdiction in a receivership "while somewhat unusual", releasing "a wider array of participants than typical", and sealing the price and the sale-process record on grounds that included "national and international security concerns".
Precedent note
On September 15 Justice Myers approved a reverse vesting order while asking whether its reasons were good ones. Across fifteen proceedings this year, the reasons filed come down to permits and licences that take weeks to a year to replace, tax losses and transfer tax, contracts needing consent, a Crown deemed trust, and buyers who would buy no other way.
Case update
Allen-Vanguard: a reverse vesting order to keep the registration
PwC, as receiver, asks Justice Black on September 25 to approve a reverse vesting sale of the Ottawa counter-IED maker to Allen Vanguard International Limited, because a Controlled Goods registration cannot be assigned and a new one can take a year; the lenders, owed more than US$80.3 million, take the cash and up to five years of a 15% revenue share, and no distribution to unsecured creditors is expected.
Filing brief
Allen-Vanguard: the goods the receiver may not touch
An Ottawa company whose electronics stop remotely detonated bombs from going off went into receivership on September 1 owing US$80,309,624.64 to lenders affiliated with its own owner — and because its inventory is controlled goods under the Defence Production Act, Justice Black borrowed a device from cannabis receiverships to appoint a receiver deemed never to possess it.
Debtor
ALLEN-VANGUARD CORPORATION and ALLEN-VANGUARD LTD.
Receiver
PwC
Bench
| Judge | Court | On this docket | Cases on record |
|---|---|---|---|
| Justice Black | Ontario Superior Court of Justice | 5 orders, Sep 2026 | 198 cases on record |
Counsel of record
| Party | Counsel | First seen | Source |
|---|---|---|---|
| ReceiverPwC | Reconstruct LLP | 25 Sep 2026 | Order · 25 Sep 2026 |
| Applicant | Osler, Hoskin & Harcourt LLP | 1 Sep 2026 | Order · 1 Sep 2026 |
| Priority class | Creditor | Amount | Source |
|---|---|---|---|
| Secured | Contego AV Funding II, LLC and Contego AV Funding II-A, LLC (as senior secured lenders, via CFS Administrative Agency Canada Corp. as Agent)General Security Agreement dated May 6, 2008 (all present and after-acquired property of Borrower); two Debentures dated May 6, 2008 and December 18, 2009 (all present and after-acquired property of Allen-Vanguard Ltd. and pledge of its shares); Securities Pledge Agreement dated December 18, 2009 (pledge of Borrower's shares); Security Agreement Supplement dated December 18, 2009 (AV Investments, LLC present and after-acquired property); Reaffirmation of Credit Documents dated March 22, 2013. Revolving Credit Facility limit $17,500,000; Term Loan Facility limit $25,844,403.97 (facility limits, · as of 30 Jun 2026 | $80.3M USD | VOL I OF IV - APPLICATION RECORD - APPLICANTS |
| Secured | |||
| Secured |
2 more claims in 1 class The stack holds Secured claims.
Every creditor and every amount.
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See all plansThis proceeding was commenced by a secured creditor. The record does not include the debtor’s own statement of assets and liabilities — that ceiling is the record’s, not this page’s.
Sale approved — Court approved the Subscription Agreement and the reverse vesting transaction, to close on delivery of the Receiver's CertificateApproval and Vesting Order · 25 Sep 2026
| Purchaser | Price | Status | Source |
|---|---|---|---|
| Allen Vanguard International LimitedSubscribed Shares of AVC (reverse vesting subscription); AVIP Subscribed Shares issued to AVC; Retained Assets retained by AVC and AVIP · share sale · nominee/assignee: its designated Affiliate (Subscribed Shares may be issued to the Purchaser 'or its designated Affiliate') · ResidualCo: 1001752237 Ontario Inc. · agreement 9 Sep 2026 | Subscribers | Approved25 Sep 2026 | Approval and Vesting Order |
Unsecured creditors: no distribution.EstimatedFirst Report of the Receiver · 18 Sep 2026
| Class | Creditor | Claims | Recovery | Basis | Source |
|---|---|---|---|---|---|
| Secured | — | — | a distributionconditional | Estimatedper the receiver | First Report of the Receiver · 18 Sep 2026 |
| Unsecured | — | — | no distribution | Estimatedper the receiver | First Report of the Receiver · 18 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.
| Date | Document | File |
|---|---|---|
Approval and Vesting Order
| PDF · Subscribers | |
Endorsement of J Black
| PDF · Subscribers | |
Order (Distribution and Ancillary Relief)
| PDF · Subscribers | |
| Factum of the Receiver (Sale Approval and Ancillary Relief) | PDF · Subscribers | |
First Report of the Receiver
| PDF · Subscribers | |
Motion Record of the Receiver
| PDF · Subscribers | |
| Notice and Statement of Receiver s245 and 246 of the BIA | PDF · Subscribers | |
Endorsement of J. Black (re Receivership Order)
| PDF · Subscribers | |
Receivership Order
| PDF · Subscribers | |
| Factum of the Applicants | PDF · Subscribers | |
VOL I OF IV - APPLICATION RECORD - APPLICANTS
| PDF · Subscribers | |
| VOL II OF IV - APPLICATION RECORD - APPLICANTS | PDF · Subscribers | |
VOL III OF IV - APPLICATION RECORD - APPLICANTS
| PDF · Subscribers | |
VOL IV OF IV - APPLICATION RECORD - APPLICANTS
| 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., “ALLEN-VANGUARD CORPORATION and ALLEN-VANGUARD LTD.” (Receivership (court-appointed)), Ontario Superior Court of Justice. Retrieved 4 November 2026, https://proceedings.ca/case/allen-vanguard-corporation-and-allen-vanguard-ltd
Sources last checked · summary updated 3 September 2026 · Report a correction · Printed from proceedings.ca/case/allen-vanguard-corporation-and-allen-vanguard-ltd
Facts and summaries are extracted automatically from the court filings linked on each page; the filings remain the authoritative record. Suggested corrections are reviewed against the source filings.