Drexler Construction Limited, Folmur Construction (2004) Ltd. and Down Under Pipe and Cable Locating Ltd.
Follow- Proceeding
- ProposalBankruptcy and Insolvency Act (Canada)
Drexler Construction Limited, together with affiliates Folmur Construction (2004) Ltd. and Down Under Pipe and Cable Locating Ltd., each filed a notice of intention to make a proposal on March 18, 2021 under Division I of the BIA, in the Ontario Superior Court of Justice. The filings followed Royal Bank of Canada, the senior secured lender under term loan, revolving line of credit and credit card facilities, declaring default on or about March 8, 2021 and issuing a notice of intention to enforce security in respect of approximately $2.1 million plus accruing interest. Folmur and Down Under each guaranteed that debt under 2006 general security agreements. Drexler listed approximately $1 million in arm's length unsecured claims, Folmur approximately $400,000, and Drexler owes Folmur approximately $3.7 million on an inter-company loan. The proceedings remain active.
Motion Record of the Companies (returnable December 16, 2022) — Application / notice of application
Sixth Report of the Proposal Trustee dated December 8, 2022 (for motion returnable December 16, 2022) — Court officer report
Motion Record of the Companies (for motion returnable April 29, 2022) — Application / notice of application
The officer filed a report. The Companies continue construction operations and require ongoing working capital to bridge seasonal cash flow gaps; they are seeking new financing facilities to fund projects and continue as a going concern while making payments under their proposals.
Source: Fifth Report of the Proposal Trustee dated April 25, 2022 (for motion returnable April 29, 2021)
Order of Deputy Registrar R. Stevens dated February 16, 2022 (Folmur Proposal Approval Order) — Plan sanction / final order
Order of Justice R. Raikes dated November 12, 2021 (Drexler Proposal Approval Order) — Plan sanction / final order
The officer filed report no. Report of Trustee on Proposal. The debtor, a southwestern Ontario excavation/sewer/water/concrete construction contractor, restructured under an NOI and proposal after defaulting on its RBC facility, obtained increased DIP and long-term CEFL financing, and the amended proposal is intended to let it continue operations and retain employees while paying unsecured creditors in full.
Source: Report to Court seeking approval of Drexler Proposal dated October 26, 2021 – Part 1 or 2
Report to Court seeking approval of Drexler Proposal dated October 26, 2021 – Part 2 or 2 — Proposal document
Motion Record of the Companies (returnable September 10, 2021) — Application / notice of application
Fourth Report of the Proposal Trustee dated September 1, 2021 (for motion returnable September 10, 2021) — Court officer report
Motion Record of the Companies (returnable July 16, 2021) — Application / notice of application
Third Report of the Proposal Trustee dated July 13, 2021 (for motion returnable July 16, 2021) — Court officer report
Second Report of the Proposal Trustee dated May 25, 2021 (for motion returnable May 28, 2021) — Court officer report
Motion Record of the Companies (returnable April 16, 2021) — Application / notice of application
First Report of the Proposal Trustee dated April 12, 2021 (for motion returnable April 16, 2021) (1 of 2) — Court officer report
First Report of the Proposal Trustee dated April 12, 2021 (for motion returnable April 16, 2021) (2 of 2) — Court officer report
All three affiliated companies filed notices of intention to make a proposal, staying RBC's enforcement steps taken after its default declaration and notice of intention to enforce security.
Source: Motion Record of the Companies (returnable May 28, 2021)
Report to Court seeking approval of Folmur Proposal dated January 5, 2021 – Part 1 or 2 — Court officer report
Report to Court seeking approval of Folmur Proposal dated January 5, 2021 – Part 2 of 2 — Court officer report
Debtor
File Documents
Proposal trustee
Albert Gelman
Bench
| Judge | Court | On this docket | Cases on record |
|---|---|---|---|
| Justice Tranquilli | Ontario Superior Court of Justice | 4 orders, Apr 2022 – Dec 2022 | 9 cases on record |
| Justice Garson | Ontario Superior Court of Justice | 3 orders, May 2021 – Jul 2021 | 4 cases on record |
| Justice Mcarthur | Ontario Superior Court of Justice | 2 orders, Sep 2021 | 4 cases on record |
| Justice Gorman | Ontario Superior Court of Justice | 2 orders, Apr 2021 | 6 cases on record |
Counsel of record
| Party | Counsel | First seen | Source |
|---|---|---|---|
| Creditorcompanies, Drexler Construction Limited and Folmur Construction (2004) Limited | Goldman Sloan Nash & Haber LLP | 29 Apr 2022 | Factum · 29 Apr 2022 |
| Creditordebto | Goldman Sloan Nash & Haber LLP | 10 Sep 2021 | Application · 10 Sep 2021 |
| CreditorDrexler Construction Ltd | Goldman Sloan Nash & Haber LLP | 29 Apr 2022 | Application · 29 Apr 2022 |
| # | Priority class | Creditor | Amount | Source |
|---|---|---|---|---|
| 4 | Secured | Royal Bank of Canada · in 556 casesGeneral Security Agreement dated May 11, 1984, registered under PPSA (registration May 18, 1984 covering Inventory, Equipment, Book Debts, Other, Motor Vehicle; also registered June 10, 2014 covering Inventory, Equipment, Accounts, Other); registered first-in-time against Drexler; also Charge/Mortgage of Land dated March 3, 1992 (registered principal $215,000, Instrument No. 663164) and Charge/Mortgage of Land dated January 18, 1993 (registered principal $130,000, Instrument No. 686143) - registered principal amounts, not balances — Senior secured lender; term loan, revolving line of credit an · as of 8 Mar 2021 | $2.1M | First Report of the Proposal Trustee dated April 12, 2021 (for motion returnable April 16, 2021) (1 of 2) |
| 4 | Secured | Royal Bank of Canada · in 556 casesGeneral Security Agreement dated November 2, 2006 in favour of RBC as security for Folmur's guarantee of the Drexler RBC Debt; PPSA registrations October 30, 2006, May 12, 2016, November 15, 2017 and October 27, 2020 (Inventory/Consumer goods, Equipment, Accounts, Other, Motor Vehicle) — Folmur guaranteed the RBC Debt of Drexler (approx. $2.1 million as of March 8, 2021); security opinion confirms GSA validly perfected and enforceable against Folmur. — debtor: Folmur Construction (2004) Ltd. | — | First Report of the Proposal Trustee dated April 12, 2021 (for motion returnable April 16, 2021) (1 of 2) |
| 5 | PMSI / lessors | PPSA equipment financiers (PMSI class) · in 183 casesFinancing statements registered against specific vehicles/equipment: Xerox Canada Ltd. (November 9, 2016); GM Financial Canada Leasing Ltd. (December 20, 2017); John Deere Financial Inc. (March 13, 2018; October 30, 2018; June 3, 2019; March 12, 2021); The Bank of Nova Scotia (October 14, 2020; November 19, 2020) - Equipment/Motor Vehicle collateral — Trustee states these likely represent purchase-money security interests in specifically identified assets if properly registered/perfected, but has not engaged counsel to confirm validity; amounts not stated in filing. — debtor: Down Under Pipe a | — | First Report of the Proposal Trustee dated April 12, 2021 (for motion returnable April 16, 2021) (1 of 2) |
| 8 | Unsecured | Folmur Construction (2004) Ltd.as of NOI filing date — Related party (affiliated company). Folmur's own books show a corresponding loan receivable from Drexler of approximately $3.8 million (see page 8) - figures approximate and not reconciled exactly. — debtor: Drexler Construction Limited | $3.7M | First Report of the Proposal Trustee dated April 12, 2021 (for motion returnable April 16, 2021) (1 of 2) |
| 8 | Unsecured | Unsecured creditors (aggregate as reported, arm's length) · in 532 casesas of NOI filing date — Document names no individual arm's length creditors. — debtor: Drexler Construction Limited | $1M | First Report of the Proposal Trustee dated April 12, 2021 (for motion returnable April 16, 2021) (1 of 2) |
| 8 | Unsecured | Unsecured creditors (aggregate as reported, arm's length) · in 532 casesas of NOI filing date — Document names no individual arm's length creditors. — debtor: Folmur Construction (2004) Ltd. | $400K | First Report of the Proposal Trustee dated April 12, 2021 (for motion returnable April 16, 2021) (1 of 2) |
| 8 | Unsecured | 2602763 Ontario Limited (260Co)as of NOI filing date — Related party: company owned and operated by Peter Drexler, former officer/director of affiliated Drexler. — debtor: Folmur Construction (2004) Ltd. | $335K | First Report of the Proposal Trustee dated April 12, 2021 (for motion returnable April 16, 2021) (1 of 2) |
| 8 | Unsecured | Canada Revenue Agency (HST arrears) · in 926 casesDeemed trust class (CRA HST arrears) for reporting periods up to February 28, 2021; March 2021 HST return not yet due. No proof of claim received from CRA as of report date (April 12, 2021). — debtor: Drexler Construction Limited · as of 28 Feb 2021 | $134K | First Report of the Proposal Trustee dated April 12, 2021 (for motion returnable April 16, 2021) (1 of 2) |
| 8 | Unsecured | 2602763 Ontario Limited (260Co)as of NOI filing date — Related party: company owned and operated by Peter Drexler, a former officer and director of Drexler (now retired). — debtor: Drexler Construction Limited | $100K | First Report of the Proposal Trustee dated April 12, 2021 (for motion returnable April 16, 2021) (1 of 2) |
| 8 | Unsecured | 2602763 Ontario Limited (260Co)as of NOI filing date — Related party: company owned and operated by Peter Drexler, former officer/director of affiliated Drexler. — debtor: Down Under Pipe and Cable Locating Ltd. | $47K | First Report of the Proposal Trustee dated April 12, 2021 (for motion returnable April 16, 2021) (1 of 2) |
| 8 | Unsecured | Canada Revenue Agency (unpaid source deductions) · in 926 casesDeemed trust class (source deductions); Trustee to report to Court/creditors at a later date. No proof of claim received from CRA as of report date. — debtor: Drexler Construction Limited | — | First Report of the Proposal Trustee dated April 12, 2021 (for motion returnable April 16, 2021) (1 of 2) |
| 8 | Unsecured | Canada Revenue Agency (HST / source deductions) · in 926 casesDeemed trust class; Trustee to report at a later date. No proof of claim received from CRA as of report date. — debtor: Down Under Pipe and Cable Locating Ltd. | — | First Report of the Proposal Trustee dated April 12, 2021 (for motion returnable April 16, 2021) (1 of 2) |
“not stated” means the record names the claim without a figure; “—” means not in the extracted record.
Unsecured creditors: 95 %. CRA paid in full.Under the plan · sanctionedReport to Court seeking approval of Folmur Proposal dated January 5,… · 8 Sep 2021
| Class | Creditor | Claims | Recovery | Basis | Source |
|---|---|---|---|---|---|
| Deemed trust | Her Majesty in right of Canada or a province | — | paid in fullconditional | Under the plansanctionedper the debtor | Motion Record of the Companies · 30 Aug 2021 |
| Deemed trust | CRA | $59.6Kproven | paid in full | Finalper the trustee | Report to Court seeking approval of Folmur Proposal dated January 5,… · 8 Sep 2021 |
| Preferred | — | — | paid in full | Under the plansanctionedper the court | Order of Justice R. Raikes dated November 12, 2021 (Drexler Proposal… · 22 Oct 2021 |
| Unsecured | — | — | 95 % | Under the plansanctionedper the trustee | Report to Court seeking approval of Folmur Proposal dated January 5,… · 8 Sep 2021 |
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.
4 engagements · 2 firms — latest: Macdonald Sager Manis, to 31 Aug 2021Fourth Report of the Proposal Trustee dated September 1, 2021 (for… · 1 Sep 2021
| Firm | Period | Hours | Fees | Rates | Source | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Albert Gelman Inc.Proposal trusteeperiod 3 of 3 | 10 Jul – 30 Aug 2021 | 123.8 | $48,170.00 | $389.10stated average | Fourth Report of the Proposal Trustee dated September 1, 2021 (for… · 1 Sep 2021 | ||||||||||||||||||||||||||||||
| Albert Gelman Inc.Proposal trusteeperiod 2 of 3 | 11 May – 9 Jul 2021Sought | 97.1 | $37,843.50 | $225 – $4954 people | Third Report of the Proposal Trustee dated July 13, 2021 (for motion · 13 Jul 2021 | ||||||||||||||||||||||||||||||
4 people — Albert Gelman Inc., 11 May – 9 Jul 2021
| |||||||||||||||||||||||||||||||||||
| Albert Gelman Inc.Proposal trusteeperiod 1 of 3 | — | 231.6 | $92,126.00 | $397.78stated average | Second Report of the Proposal Trustee dated May 25, 2021 (for motion · 25 May 2021 | ||||||||||||||||||||||||||||||
| Macdonald Sager ManisProposal trustee | to 31 Aug 2021 | — | — | not stated | Fourth Report of the Proposal Trustee dated September 1, 2021 (for… · 1 Sep 2021 | ||||||||||||||||||||||||||||||
| Date | Document | File |
|---|---|---|
Endorsement of Justice Tranquilli dated December 16, 2022
| ||
Factum of the Companies (for motion returnable December 16, 2022)
| ||
| Motion Record of the Companies (returnable December 16, 2022) | ||
Order of Justice Tranquilli dated December 16, 2022
| ||
| Sixth Report of the Proposal Trustee dated December 8, 2022 (for motion returnable December 16, 2022) | ||
Endorsement of Justice Tranquilli dated April 29, 2022
| ||
Factum of the Companies (for motion returnable April 29, 2022)
| ||
Motion Record of the Companies (for motion returnable April 29, 2022)
| ||
Order of Justice Tranquilli dated April 29, 2022
| ||
Fifth Report of the Proposal Trustee dated April 25, 2022 (for motion returnable April 29, 2021)
| ||
Order of Deputy Registrar R. Stevens dated February 16, 2022 (Folmur Proposal Approval Order)
| ||
Order of Justice R. Raikes dated November 12, 2021 (Drexler Proposal Approval Order)
| ||
Report to Court seeking approval of Drexler Proposal dated October 26, 2021 – Part 1 or 2
| ||
| Report to Court seeking approval of Drexler Proposal dated October 26, 2021 – Part 2 or 2 | ||
Endorsement of Justice M.D. Mcarthur dated September 10, 2021
| ||
| Factum of the Companies (for motion returnable September 10, 2021) | ||
Motion Record of the Companies (returnable September 10, 2021)
| ||
Order of Justice M.D. Mcarthur dated September 10, 2021
| ||
Fourth Report of the Proposal Trustee dated September 1, 2021 (for motion returnable September 10, 2021)
| ||
Endorsement of Justice Garson dated July 16, 2021
| ||
| Factum of the Companies (for motion returnable July 16, 2021) | ||
| Motion Record of the Companies (returnable July 16, 2021) | ||
Order of Justice Garson dated July 16, 2021
| ||
Third Report of the Proposal Trustee dated July 13, 2021 (for motion returnable July 16, 2021)
| ||
| Factum of the Companies (for motion returnable May 28, 2021) | ||
Motion Record of the Companies (returnable May 28, 2021)
| ||
Order and Endorsement of Justice Garson dated May 28, 2021
| ||
Second Report of the Proposal Trustee dated May 25, 2021 (for motion returnable May 28, 2021)
| ||
| Service List as of April 22, 2021 | ||
Endorsement of Justice Gorman dated April 16, 2021
| ||
| Factum of the Companies (for motion returnable April 16, 2021) | ||
Motion Record of the Companies (returnable April 16, 2021)
| ||
Order of Justice Gorman dated April 16, 2021
| ||
| Supplementary Report to the First Report of the Proposal Trustee dated April 14, 2021 (for motion returnable April 16, 2021) | ||
First Report of the Proposal Trustee dated April 12, 2021 (for motion returnable April 16, 2021) (1 of 2)
| ||
| First Report of the Proposal Trustee dated April 12, 2021 (for motion returnable April 16, 2021) (2 of 2) | ||
| Notice of NOI – Drexler Construction Limited | ||
| Notice of NOI – Folmur Construction (2004) Ltd. | ||
| Notice of NOI – Down Under Pipe and Cable Locating Ltd | ||
Report to Court seeking approval of Folmur Proposal dated January 5, 2021 – Part 1 or 2
| ||
| Report to Court seeking approval of Folmur Proposal dated January 5, 2021 – Part 2 of 2 | ||
Filing titles, dates, and extracted key facts are public.
CiteProceedings., “Drexler Construction Limited, Folmur Construction (2004) Ltd. and Down Under Pipe and Cable Locating Ltd.” (Proposal), Ontario Superior Court of Justice. Retrieved 20 September 2026, https://proceedings.ca/case/drexler-construction-limited-folmur-construction-2004-ltd-and-down-under-pipe-an