EQ3
FollowActive
- Proceeding
- ProposalSection 243(1) of the Bankruptcy and Insolvency Act R.S.C. 1985 c.B-5 as amended
- File
- 21-1400743
Filings held18
Last activity19 Oct 2010
On the record5,865 days
Secured debt$17M
OverviewSummary updated
EQ3 is the subject of a Division I proposal under the Bankruptcy and Insolvency Act, commenced on August 31, 2010. The proceeding was brought by Palliser Furniture (Canada) Corporation and Palliser Furniture Holdings Ltd., with Ernst & Young Inc. as proposal trustee. It proceeds in the Court of Queen's Bench under court file number 21-1400743 and remains active.
Claims processIf you are owed money
A claims procedure has been established — see the order for deadlines.
Proceedings AIAsk this case — answers cite the filings
Case updates18 dated entries
#Filing
Marked the commencement of the Division I proposal proceeding on August 31, 2010, with Ernst & Young Inc. as proposal trustee.
Source: Certificate of Filing
#Order
The court appointed Ernst & Young Inc. as Receiver, on the application of PALLISER FURNITURE (CANADA) CORPORATION and PALLISER FURNITURE HOLDINGS LTD.. Court file CI 10-01-.
Source: Court Order
Parties
Debtor
EQ3
Proposal trustee
EY
Bench and counselPer the orders and service lists on the record
Bench
| Judge | Court | On this docket | Cases on record |
|---|---|---|---|
| Justice Monnin | Court of King's Bench of Manitoba | 2 orders, Feb 2010 – Oct 2010 | 1 case on record |
Counsel of record
| Party | Counsel | First seen | Source |
|---|---|---|---|
| CreditorPeter Tielmann | Fillmore Riley LLP | 19 Oct 2010 | Order · 19 Oct 2010 |
Capital structureAs asserted in the filings
| # | Priority class | Creditor | Amount | Source |
|---|---|---|---|---|
| 4 | Secured | Palliser Furniture Upholstery Ltd. / Palliser Furniture Holdings Ltd. (Palliser)as of First Report of the Receiver — Secured claim arising from initial vendor note from roll-out of EQ3's assets from Palliser ($12.1 million, as adjusted), advances under lines of credit ($1.6 million), direct cash advances ($1.8 million), goods and services provided ($2.5 million), interest ($0.2 million), less repayments and other Palliser entity offsets ($1.1 million) — Related party (parent/affiliated supplier group). After closing of sale transactions, Palliser expected to have a shortfall of approximately $10.5 million, representing approximately 78% of known Claims of EQ3 World. Palli | $17M | First Report of the Trustee |
| 4 | Secured | 7020058 Canada Ltd. (formerly EQ3 International Ltd.)Inter-corporate indebtedness in the approximate amount of $11,693,000 owed by EQ3 World to 7020058 Canada Ltd. — Related party (parent company); to be acquired by EQ3 World Subco for a nominal amount as part of the Share Purchase and Share Subscription Agreement. Unaffected Creditor under the Proposal, not participating in dividend distribution. — debtor: EQ3 World (6862420 Canada Ltd.) | — | First Report of the Trustee |
| 7 | Preferred (BIA s. 136) | Affected Creditors (aggregate as reported)Aggregate pool of Affected (unsecured/preferred) creditors including the taxation authority amounts listed separately; document does not itemise all individual creditors within this pool — debtor: EQ3 World (6862420 Canada Ltd.) | $3.9M | First Report of the Trustee |
| 8 | Unsecured | Palliser Furniture group of companies (other entities)Related party; goods provided on credit to EQ3 on an unsecured basis; aggregate balance owing approximately $2.4 million — debtor: EQ3 World (6862420 Canada Ltd.) | $2.4M | First Report of the Trustee |
| 8 | Unsecured | Ontario Ministry of Finance · in 43 casesUnremitted sales taxes; part of Affected Creditor pool — debtor: EQ3 World (6862420 Canada Ltd.) | $411K | First Report of the Trustee |
| 8 | Unsecured | State Board of Equalization - State of CaliforniaUnremitted sales taxes; part of Affected Creditor pool — debtor: EQ3 World (6862420 Canada Ltd.) | $227K USD | First Report of the Trustee |
| 8 | Unsecured | Receiver General · in 75 casesUnremitted sales taxes; part of Affected Creditor pool — debtor: EQ3 World (6862420 Canada Ltd.) | $40.7K | First Report of the Trustee |
| 8 | Unsecured | Ministre Du RevenuUnremitted sales taxes; part of Affected Creditor pool — debtor: EQ3 World (6862420 Canada Ltd.) | $33.3K | First Report of the Trustee |
| 8 | Unsecured | British Columbia Minister of FinanceUnremitted sales taxes; part of Affected Creditor pool — debtor: EQ3 World (6862420 Canada Ltd.) | $27.7K | First Report of the Trustee |
| 8 | Unsecured | Florida Department of Revenue · in 4 casesUnremitted sales taxes; part of Affected Creditor pool — debtor: EQ3 World (6862420 Canada Ltd.) | $25.1K USD | First Report of the Trustee |
| 8 | Unsecured | Nevada Department of Taxation · in 2 casesUnremitted sales taxes; part of Affected Creditor pool — debtor: EQ3 World (6862420 Canada Ltd.) | $25K USD | First Report of the Trustee |
| 8 | Unsecured | Virginia Department of Taxation · in 3 casesUnremitted sales taxes; part of Affected Creditor pool — debtor: EQ3 World (6862420 Canada Ltd.) | $15.9K USD | First Report of the Trustee |
| 8 | Unsecured | Manitoba Finance - Taxation Division · in 7 casesUnremitted sales taxes; part of Affected Creditor pool — debtor: EQ3 World (6862420 Canada Ltd.) | $14.4K | First Report of the Trustee |
| 8 | Unsecured | Arizona Department of Revenue · in 6 casesUnremitted sales taxes; part of Affected Creditor pool; table total stated as $841,514 across mixed CAD/USD currencies without conversion basis specified — debtor: EQ3 World (6862420 Canada Ltd.) | $10.4K USD | First Report of the Trustee |
| 8 | Unsecured | Texas State ComptrollerUnremitted sales taxes; part of Affected Creditor pool — debtor: EQ3 World (6862420 Canada Ltd.) | $8.42K USD | First Report of the Trustee |
| 8 | Unsecured | Internal Revenue Service · in 3 casesUnremitted sales taxes; part of Affected Creditor pool — debtor: EQ3 World (6862420 Canada Ltd.) | $2.9K USD | First Report of the Trustee |
“not stated” means the record names the claim without a figure; “—” means not in the extracted record.
Sale processAs stated in the filings
6 transactions · 4 closed · 2 approved — The Miami Transaction is approved by this order.Court Order Approving Sale of Miami Assets · 23 Feb 2010
| Purchaser | Price | Status | Source |
|---|---|---|---|
| unnamedthe Sales Assets | not stated | Closed10 Feb 2010 | Receiver Certificate |
| 5987858 Manitoba Ltd. (now named EQ3 Ltd.)the Debtor's right, title and interest in and to the assets described in the Miami Purchase Agreement, including real property at 408 York Avenue, Winnipeg, Manitoba · asset sale · agreement 16 Feb 2010 | not statedCash Purchase Price referenced but amount not stated in this order | Approved23 Feb 2010 | Court Order Approving Sale of Miami Assets |
| Palliser Furniture Holdings Ltd.the Debtor's right, title and interest in and to the assets described in the Dallas/LV Purchase Agreement (the "Purchased Assets") · asset sale · agreement 16 Feb 2010 | not stated | Closed18 Feb 2010 | Receiver Certificate # 1 |
| EQ3 Ltd.sale of substantially all of the EQ3 Group's assets · asset sale | not stated | Closed9 Feb 2010 | First Report of the Trustee |
| Palliser Furniture Upholstery Ltdsubscription for new shares of EQ3 World, and purchase of EQ3 Amalco shares · share subscription · agreement 12 Jul 2010 | $400Ksubscription price for the Subscribed Shares; EQ3 Amalco shares purchased for a nominal amount | Approved | First Report of the Trustee |
| unnamedthe inventory and moveable leasehold improvements of EQ3 World located at leased premises in Dallas, Texas and Las Vegas, Nevada and the sale of the inventory and all leasehold improvements of EQ3 World located at leased premises in Miami, Florida | not stated | Closed17 Feb 2010 | First Report of the Trustee |
Closing termsVesting effective upon delivery of Receiver's Certificate confirming payment of Purchase Price and satisfaction of closing conditionsCourt Order Approving Sale of Dallas/ Las Vegas Assets
RecoveriesAs stated in the filings
Unsecured creditors: 7–100 %. Palliser short by $10.5M.Under the plan · sanctionedFirst Report of the Trustee · 2 Sep 2010
| Class | Creditor | Claims | Recovery | Basis | Source |
|---|---|---|---|---|---|
| Deemed trust | — | — | paid in full | Under the plansanctionedper the proposal trustee | First Report of the Trustee · 2 Sep 2010 |
| Secured | Palliser | — | short by $10.5M | Estimatedper the receiver | First Report of the Trustee · 2 Sep 2010 |
| Preferred | — | — | paid in full | Under the plansanctionedper the proposal trustee | First Report of the Trustee · 2 Sep 2010 |
| Unsecured | Affected Creditors | — | 7–100 % | Under the plansanctionedper the proposal trustee | First Report of the Trustee · 2 Sep 2010 |
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.
Documents
18 filings
| Date | Document | File |
|---|---|---|
Order Approving Proposal
| ||
Certificate of Filing
| ||
| Instruction Letter | ||
| Notice of Proposal | ||
| Proof of Claim | ||
| Proxy | ||
| Sample Proof of Claim | ||
| Sample voting letter | ||
| Voting Letter | ||
First Report of the Trustee
| ||
| Proposal | ||
Court Order Approving Sale of Dallas/ Las Vegas Assets
| ||
Court Order Approving Sale of Miami Assets
| ||
| Form 75 - Demand for Repossession of Goods | ||
Receiver Certificate # 1
| ||
Receiver Certificate # 2
| ||
Receiver Certificate
| ||
Court Order
| ||
Filing titles, dates, and extracted key facts are public.
CiteProceedings., “EQ3” (Proposal). Retrieved 20 September 2026, https://proceedings.ca/case/eq3