Brands International Corporation

Brands International Corporation filed a notice of intention to make a proposal under section 50.4 of the Bankruptcy and Insolvency Act on December 24, 2024, and the proceeding remains active. The company estimates total liabilities of approximately $12.5 million as at the filing date, on an unaudited management basis, with no total assets figure stated. Canadian Western Bank, the senior secured lender under a May 17, 2023 credit agreement comprising a revolving demand operating loan, non-revolving demand draw and term facilities and a corporate credit card, is owed approximately $6.7 million, secured by a general security agreement over substantially all assets and an unlimited personal guarantee from CEO and director Gedaliah David Kahan. The Crown asserts a deemed trust claim of $210,000 for source deductions and payroll remittances; accrued vacation pay of approximately $35,000 is also owing. The company advised that no harmonized sales tax was owing for pre-filing periods. A limited number of equipment lessors and financiers hold PPSA registrations, including CWB National Leasing Inc., Evoqua Water Technologies, Travelers Finance Ltd. and IndCom Leasing Inc., and Loop Fund I LP holds a blanket registration relating to the company's credit card. All received notice of the motion.