#Report
Reported the Investor no longer intends to close, the DIP Lender's October 22 acceleration and termination, 134 layoffs over two days leaving 25 retained, and liquidation discussions.
Source: Sixth Report of the Monitor
Freshstone Brands Inc.
ActiveFollow
- Proceeding
- CCAACompanies' Creditors Arrangement Act, R.S.C. 1985, c. C-36, as amended
- File
- CL-26-00000265-0000
- Industry
- Manufacturing · Food & beverage manufacturing
Filings held31
Last activity23 Oct 2026
On the record149 days
OverviewSummary updated
Freshstone Brands Inc. is in active CCAA proceedings in Ontario, commenced June 9, 2026, a month after the closing of the Kitchen Partners Transaction on May 8, 2026. Proceeds of that sale funded the Payout, repaying in full the CIBC Extinguished Credit Agreement, under which the term loan stood at $37,136,513 as at December 28, 2024. That facility was therefore not outstanding at filing. The sole secured creditor named in the service list is Frank Burdzy, Freshstone's CEO, director and an investor, holding a general security agreement dated October 28, 2025, amended and restated effective May 8, 2026, securing promissory notes with principal components of $1.15 million at 20% per annum, $2 million plus a $2 million New Money Fee, $2 million at 25% and $2.75 million at 5%, all maturing on the earlier of board-approved prepayment or December 31, 2027. Royal Bank of Canada's leasing division is listed under equipment financing. On internal book-value figures as at April 25, 2026, assets were $81,798,242 and liabilities $80,376,951; post-transaction, the Debtor states assets of approximately $60,000,000 and liabilities of approximately $50,000,000, both subject to further reconciliation.
Proceedings AIOpen Proceedings AI
Case updates32 dated entries
#Report
Reported $2,050,958 in post-filing payables at October 17, an unwaived Event of Default under the DIP agreement, and the Investor's refusal to confirm he would close by the Outside Date.
Source: Fifth Report of the Monitor
#Order
Endorsement of Justice Black dated October 14, 2026, re RVO motion heard October 14, 2026 — Endorsement / reasons
#Order
Endorsement of Justice Black dated October 5, 2026 re RVO motion heard October 2, 2026 — Endorsement / reasons
#Report
The Monitor's Fourth Report declared the Stalking Horse Agreement the Successful Bid, reported fees of $592,017.10 to September 19, and put liquidation value below the secured claims, leaving unsecured creditors and equity nothing.
Source: Fourth Report of the Monitor
#Report
Reported Freshstone had surrendered five of its seven leased premises, operating only from Steinway and Mississauga with third-party warehousing, and that an approval motion for the Successful Bid would follow.
Source: Third Report of the Monitor
#Report
The Monitor's Second Report recorded 139 prospective bidders given the teaser, 27 confidentiality agreements executed and no LOIs by the deadline; cash at August 15 was $173,000 against a $200,000 forecast.
Source: Second Report of the Monitor
#Order
The Court approved the SISP and SISP Procedures and authorized Burdzy's June 12 Subscription Agreement for use as the stalking horse bid, expressly without approving the underlying transaction.
Source: SISP Order
#Report
Supported the motion for an amended and restated initial order raising DIP borrowing to $7 million, enlarging the Directors' and Administration Charges and extending the stay to October 16, 2026, alongside the SISP order.
Source: First Report of the Monitor
#Order
Justice W.D. Black granted the Initial Order, appointing Deloitte Restructuring Inc. as monitor and staying proceedings to June 18, 2026; the s.23(1)(a) creditor list as at June 9 stated $28,129,890.
Source: Initial Order
#Filing
Freshstone applied for CCAA protection in the Ontario Superior Court of Justice (Commercial List), Court File No. CL-26-00000265-0000, supported by the affidavit of its CEO, Frank Burdzy.
Source: Application of the Applicant
AnalysisAll insights
Case update
Freshstone: the liquidation the monitor now calls inevitable
The monitor's Sixth Report says Freshstone Brands' chief executive, investor in the reverse vesting transactions approved October 14, told it on October 22 that the investor no longer intended to close. It reports 123 layoffs that day and 11 the next and a DIP default notice terminating the lender's commitment, and calls a liquidation inevitable.
Case update
Freshstone: a material adverse change, a week after the reverse vesting order
A week after Justice W.D. Black approved Freshstone Brands' reverse vesting transaction with its chief executive as investor, the monitor's material adverse change report recorded reduced sales, $1,414,975 of post-filing payables past due and a DIP default not waived as of October 21. The investor, it says, had declined to confirm closing by November 27.
Outcome brief
Freshstone: the reverse vesting order, granted on a third affidavit
On October 14, Justice W.D. Black granted the reverse vesting order for Freshstone Brands' transaction with its chief executive, twelve days after declining to. A third affidavit had supplied the licensing statute, a CFIA service standard of 70 business days and the identity of the investor's tax adviser.
Outcome brief
Freshstone: the reverse vesting evidence the judge found wanting
At the October 2 hearing, Justice W.D. Black did not grant Freshstone Brands the reverse vesting order for its chief executive's credit bid. His October 5 reasons describe the licence evidence as "in the nature of hearsay from an unidentified source"; he did not dismiss the request, and Freshstone may return with proper evidence.
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.
Filing brief
Freshstone: the CEO's credit bid and the RVO evidence the judge asked for
No one else sent a letter of intent for the Etobicoke prepared-meals maker, so on October 2 Freshstone Brands will ask Justice Black to approve a reverse vesting transaction in which its chief executive and only pre-filing secured creditor, Frank Burdzy, credit-bids notes of about $7.73 million for all of its shares, keeping the licences, tax losses and customer contracts the company says an asset sale would put at risk.
Parties
Debtor
Freshstone Brands Inc.
Monitor
Deloitte
Bench and counselPer the orders and service lists on the record
Bench
| Judge | Court | On this docket | Cases on record |
|---|---|---|---|
| Justice Black | Ontario Superior Court of Justice | 10 orders, Jun 2026 – Oct 2026 | 198 cases on record |
Counsel of record
| Party | Counsel | First seen | Source |
|---|---|---|---|
| MonitorDeloitte | Osler, Hoskin & Harcourt LLP | 19 Jun 2026 | Service list · 19 Jun 2026 |
| ApplicantFreshstone Brands Inc. | Stikeman Elliott LLP | 9 Jun 2026 | Service list · 19 Jun 2026 |
| CreditorCampbell Company of Canada | Thornton Grout Finnigan LLP | 19 Jun 2026 | Service list · 19 Jun 2026 |
| CreditorFrank Burdzy | Chaitons LLP | 19 Jun 2026 | Service list · 19 Jun 2026 |
| CreditorIndependent Purchasing Cooperative, Inc | Miller Thomson LLP | 19 Jun 2026 | Service list · 19 Jun 2026 |
Capital structureAs asserted in the filings
| # | Priority class | Creditor | Amount | Source |
|---|---|---|---|---|
| 4 | Secured | Royal Bank of Canada (Leasing Division) · in 584 casesEquipment financing/leases (listed under separate 'Equipment Financing' heading in Service List, distinct from the 'Secured Creditor' and 'DIP Lender' categories) — No amount or further detail regarding this facility is stated in the pages provided. — debtor: Freshstone Brands Inc. | — | Application of the Applicant |
| 4 | Secured | |||
| 4 | Secured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured |
546 more claims in 2 classes The stack holds Secured and Unsecured claims.
Every creditor and every amount, drawn to scale.
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See all plans“not stated” means the record names the claim without a figure; “—” means not in the extracted record.
Sale processAs stated in the filings
Sale did not complete — Investor no longer intends to close the Transactions, DIP Lender terminated further advances, and the Monitor considers liquidation of the Applicant's assets inevitableSixth Report of the Monitor · 23 Oct 2026
| Purchaser | Price | Status | Source |
|---|---|---|---|
| Frank BurdzyStalking horsethe Subscription Shares, with the existing equity interests being cancelled on closing such that Stalking Horse Bidder would become the sole shareholder of Freshstone · share subscription · nominee/assignee: an entity to be incorporated by him and designated prior to Closing · agreement 12 Jun 2026 | Subscribers | Not completed22 Oct 2026 | Sixth Report of the Monitor |
AdvisorsGlassRatner Advisory Canada Inc. (financial advisor)Sixth Report of the Monitor
RecoveriesAs stated in the filings
Equity: no distribution.Third Report of the Monitor · 15 Sep 2026
| Class | Creditor | Claims | Recovery | Basis | Source |
|---|---|---|---|---|---|
| Equity | — | — | no distribution | per the monitor | Third Report of the Monitor · 15 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.
Estate financialsReported figures — never derived
Total assets at filing
Total liabilities at filing
As at ·
Cumulative receipts
$12.3M
As at 19 Aug 2026Second Report of the Monitor
Cash on hand
As at
Professional fees
As at
2 more reported figures, and the 2 totals the debtor stated at filing
Each one as the filing states it, with its source.
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See all plansDocuments
31 filings
| Date | Document | File |
|---|---|---|
Sixth Report of the Monitor
| PDF · Subscribers | |
Fifth Report of the Monitor
| PDF · Subscribers | |
Endorsement of Justice Black dated October 14, 2026, re RVO motion heard October 14, 2026
| PDF · Subscribers | |
RVO Order granted October 14, 2026
| PDF · Subscribers | |
Third Affidavit of Leigh Wilson
| PDF · Subscribers | |
Endorsement of Justice Black dated October 5, 2026 re RVO motion heard October 2, 2026
| PDF · Subscribers | |
Fee Approval Order granted October 2, 2026
| PDF · Subscribers | |
Factum of the Monitor
| PDF · Subscribers | |
Approval and Reverse Vesting Order
| PDF · Subscribers | |
| Comparative to Draft Approval and Reverse Vesting Order | PDF · Subscribers | |
| Factum of the Applicant re ARVO Application | PDF · Subscribers | |
Fourth Report of the Monitor
| PDF · Subscribers | |
Motion Record of the Monitor re ARVO Application
| PDF · Subscribers | |
Third Report of the Monitor
| PDF · Subscribers | |
Motion Record of the Applicant re ARVO Application
| PDF · Subscribers | |
Second Report of the Monitor
| PDF · Subscribers | |
Service List
| PDF · Subscribers | |
Amended & Restated Initial Order
| PDF · Subscribers | |
Endorsement of Justice W.D. Black – dated 2026-06-18
| PDF · Subscribers | |
SISP Order
| PDF · Subscribers | |
| Factum of the Applicant re AIRO Application | PDF · Subscribers | |
First Report of the Monitor
| PDF · Subscribers | |
| Motion Record of the Applicant | PDF · Subscribers | |
Creditor Notice
| PDF · Subscribers | |
| CCAA FAQ | PDF · Subscribers | |
Creditor List
| PDF · Subscribers | |
Endorsement of Justice W.D. Black
| PDF · Subscribers | |
Initial Order
| PDF · Subscribers | |
Application of the Applicant
| PDF · Subscribers | |
| Factum of the Applicant re Initial Application | PDF · Subscribers | |
Pre-Filing Report of the Monitor
| 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., “Freshstone Brands Inc.” (CCAA), Ontario Superior Court of Justice. Retrieved 4 November 2026, https://proceedings.ca/case/freshstone-brands-inc