Clearford Water Systems Inc.
Follow- Proceeding
- ProposalBankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, as amended
- File
- 33-2825753
Clearford Water Systems Inc. is proceeding under a Division I proposal under the Bankruptcy and Insolvency Act in the Ontario Superior Court of Justice, court file 33-2825753, commenced June 29, 2022. An unaudited consolidated balance sheet prepared by the Company's representatives as at September 30, 2021 shows total assets of $19,857,000 against total liabilities of $80,041,000 and a shareholders' deficiency of $(60,184,000), with long-term debt of $55,895,000 and a convertible debenture of $8,776,000 representing advances from the Sponsors directly and through subsidiaries, and accrued interest of approximately $9.8 million. Secured claims held by Sponsors and related parties stood at approximately $7,400,000 to Morebath Limited, $5,350,000 to Sustainable Water Projects Inc. and $3,700,000 to Lexus Continental Ltd. as of the April 28, 2022 filing date. Trade and other creditors are estimated by the Company to hold Affected Claims of approximately $296,000; intercompany claims from three subsidiaries total $25,240,000 and SW Everett Inc. is owed $4,477,000. Enterprise Fleet Management Canada, Inc.'s registered security interest is treated as an Unaffected Claim.
A claims procedure has been established — see the order for deadlines.
The officer filed report no. First Report. The Company's ongoing operations depend on continued Sponsor funding, with its primary focus being raising capital for and providing administrative services to its operating Subsidiaries.
Source: First Report to Court of the Proposal Trustee dated June 29, 2022
Application filed in the Ontario Superior Court of Justice, opening the proceeding against Clearford Water Systems Inc. under court file number 33-2825753.
Source: Motion Record of the Proposal Trustee dated June 29, 2022
The officer filed a report. Court file 33-2825753.
Source: Report to creditors of the Proposal Trustee dated May 20, 2022 - final
Certificate of Filing a Notice of Intention to Make a Proposal dated April 28, 2022 — NOI certificate of filing
Undated filings1 — no date appears on the document · show
Debtor
Clearford Water Systems Inc.
Proposal trustee
AlixPartners
| # | Priority class | Creditor | Amount | Source |
|---|---|---|---|---|
| 4 | Secured | Morebath Limitedas of Filing Date (April 28, 2022) — Convertible debentures and share pledges: (i) $500,000 dated Nov 5, 2018 (pledging 100% shares of Clearford Water Utility (Fetherston) Inc.); (ii) $1.65M dated May 15, 2018 (pledging 100% shares of 486606 Ontario Inc.); (iii) $3.5M dated Aug 5, 2015 (pledging 90.7% shares of UV Pure Technologies Inc.) — Sponsor and related party; balance approximate as of Filing Date; Priority Holder in CVN with claim of $7,442,276.00 (66.81%) per Schedule A — debtor: Clearford Water Systems Inc. | $7.4M | Report to creditors of the Proposal Trustee dated May 20, 2022 - final |
| 4 | Secured | Sustainable Water Projects Inc. (SWP)as of Filing Date (April 28, 2022) — General security agreement dated May 19, 2016; comprised of (i) $3.25M principal loan agreement dated Nov 19, 2014 (originally advanced by Canadian Water Projects Inc., assigned to SWP Sept 30, 2016), and (ii) US$1.47M principal loan agreement dated May 19, 2016 — Sponsor and related party; balance approximate as of Filing Date; also holds Subordinate Holder interest of $5,349,728 in CVN Schedule A — debtor: Clearford Water Systems Inc. | $5.35M | Report to creditors of the Proposal Trustee dated May 20, 2022 - final |
| 4 | Secured | Lexus Continental Ltd.as of Filing Date (April 28, 2022) — Convertible debenture and share pledge in principal amount of $2.975 million dated November 1, 2017, pledging 100% shares of Koester Canada Inc. (prior name of Clearford Koester Canada Inc.) — Sponsor and related party; balance approximate as of Filing Date; Priority Holder in CVN with claim of $3,697,268.00 (33.19%) per Schedule A — debtor: Clearford Water Systems Inc. | $3.7M | Report to creditors of the Proposal Trustee dated May 20, 2022 - final |
| 4 | Secured | Enterprise Fleet Management Canada, Inc.Registered security interest over the Property; referenced as example of Non-Sponsor Secured Claims — Amount not stated; named as example holder of valid registered security interest, treated as Unaffected Claim under the Proposal — debtor: Clearford Water Systems Inc. | — | Report to creditors of the Proposal Trustee dated May 20, 2022 - final |
| 8 | Unsecured | Intercompany Claims (Clearford Koester Canada Inc. $16.4M, Clearford Finance Corporation $7.8M, Clearford Water Utility (Ontario) Inc. $1.0M)Represents net balances owed to three Subsidiaries; related party intercompany claims; component breakdown given, not itemized further per-entity balance verified elsewhere (CVN Schedule A shows Clearford Koester $16,400,317, Clearford Water Utility (Ontario) $1,011,797, Clearford Finance $7,828,026) — debtor: Clearford Water Systems Inc. | $25.2M | Report to creditors of the Proposal Trustee dated May 20, 2022 - final |
| 8 | Unsecured | SW Everett Inc. (SWE)Unsecured loan owed to a party related to SWP (related party); CVN Schedule A shows exact claim of $4,476,457.00; SW Everett Loan defined as principal amount USD$3,350,000 per definitions — debtor: Clearford Water Systems Inc. | $4.48M | Report to creditors of the Proposal Trustee dated May 20, 2022 - final |
| 8 | Unsecured | Trade and other creditors (aggregate as reported)Primarily vendor claims and amounts due to professional advisors; document names no individual creditors in this summary table; described elsewhere as 'estimated by the Company to hold Affected Claims of approximately $296,000' — debtor: Clearford Water Systems Inc. | $296K | Report to creditors of the Proposal Trustee dated May 20, 2022 - final |
“not stated” means the record names the claim without a figure; “—” means not in the extracted record.
Unsecured creditors: 67 %.EstimatedFirst Report to Court of the Proposal Trustee · 29 Jun 2022
| Class | Creditor | Claims | Recovery | Basis | Source |
|---|---|---|---|---|---|
| Unsecured | — | — | 67 %conditional | Estimatedper the proposal trustee | First Report to Court of the Proposal Trustee · 29 Jun 2022 |
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.
As at 30 Sep 2021 · per unaudited consolidated balance sheet prepared by Company's representatives · consolidated (Clearford Water Systems Inc. and Subsidiaries) — Long-term debt ($55,895,000) and convertible debenture ($8,776,000) represent advances from Sponsors, both directly and through Subsidiaries; accounts payable and other long-term liabilities include accrued interest of approximately $9.8 million; shareholders' deficiency of $(60,184,000) reconciles totals; figures in ($000s)
| Date | Document | File |
|---|---|---|
| Court Order Approving Proposal dated July 13, 2022 | ||
Endorsement of Justice Kershman dated July 13, 2022
| ||
First Report to Court of the Proposal Trustee dated June 29, 2022
| ||
Motion Record of the Proposal Trustee dated June 29, 2022
| ||
| Notice of Proposal to Creditors dated May 20, 2022 | ||
Report to creditors of the Proposal Trustee dated May 20, 2022 - final
| ||
| Certificate of Filing a Proposal dated May 12, 2022 | ||
| Proposal Filed May 12, 2022 | ||
| Certificate of Filing a Notice of Intention to Make a Proposal dated April 28, 2022 | ||
| Proof of Claim and Voting Letter | ||
Filing titles, dates, and extracted key facts are public.
CiteProceedings., “Clearford Water Systems Inc.” (Proposal), Ontario Superior Court of Justice. Retrieved 20 September 2026, https://proceedings.ca/case/clearford-water-systems-inc