Kanwal INC. AND 9058-0150 QUEBEC Inc
- Proceeding
- CCAACompanies’ Creditors Arrangement Act, R.S.C. 1985, C-36
- File
- 450-11-000097-208
- Industry
- Manufacturing · Vehicles, parts & aerospace
Kanwal Inc. and 9058-0150 Québec Inc. are the subject of active insolvency proceedings in Quebec. Kanwal Inc.'s secured debt is led by First West Capital Union at $12,150,731, Bank of Montreal at $4,284,709, Venbridge at $380,307 and Laurentian Bank at $295,152. A list of creditors as of July 30, 2020 records unsecured claims against Kanwal Inc. including PPD Rubtech at $780,049, De Ruijter International B.U. at $391,233.64, Rubber Recycling Technology, Inc. at $339,066, McMillan S.E.N.C at $208,206.95, L'Union Vie at $191,882.25, DHL Express (Canada) Ltd at $183,426.58 and the Receiver General for Canada at $71,411.04. Claims are also listed against related entity Société en Commandite Industriel Léger, secured by 9286-2929 Québec Inc at $4,300,000, Consolidated Capital G.P. at $1,300,000 and municipal and school tax claims of Sherbrooke and Magog.
The officer filed report no. Deuxième rapport amendé du Séquestre. The Receiver completed the en bloc sale of Kanwal's operating assets to Ekip Innovations Inc. on October 1, 2021, and has since wound down remaining administrative matters; the only assets left to realize are outstanding SR&ED tax credits, pending cooperation from Paul Kanwal, after which the Receiver intends to seek its discharge.
Motion for directions and for the issuance of an order approving a distribution to secured creditors (in French only) — Application / notice of application
The court granted an approval and vesting order for the sale to Ekip Innovations inc. Closing terms, as extracted: Vesting of the Purchased Assets takes effect upon issuance of the Receiver's Certificate; the lease is assigned at the same time and cure costs are paid within five business days after the Closing Date. Sealed: Exhibits P-2 and P-15 (engagement letter and APA) and Schedules A, B and C to the Receiver's report sealed until closing or further order.
Source: Vesting Order
The officer filed report no. Premier Rapport. Kanwal continues operating its manufacturing business under receivership pending closing of the proposed sale to Ekip Innovations Inc., with production maintained without interruption and 58 jobs preserved.
Source: First Report of the Receiver on the Business and Financial Affairs of the debtor (in French only)
The court appointed PricewaterhouseCoopers Inc. as receiver, on the application of BANK OF MONTREAL. Court file 450-11-000097-208.
Source: Order appointing a Receiver
The officer filed report no. Third Report. The Debtors continue operating as going concerns under CCAA protection while negotiating with stakeholders toward a plan of arrangement or, failing that, a sale/investment solicitation process. They seek a stay extension to March 31, 2021 and approval of an $11.93M DIP financing from Waygar Capital.
Source: Third Report of the Monitor on the Business and Financial Affairs of the Debtor Companies
Application for approval of Interim Financing and for an Extension of the Stay of Proceedings — Application / notice of application
The officer filed report no. Second Report. Kanwal and SEC continue to operate as usual during the CCAA stay while pursuing a DIP/refinancing with Waygar Capital to repay secured lenders; no additional financing is currently required per the cash flow projections.
Source: Second Report of the Monitor on the Business and Financial Affairs of the Debtor Companies
Application for an Extension of the Stay of Proceedings — Application / notice of application
Application for an initial order under the CCAA and for the continuation of proceedings commenced under BIA — Application / notice of application
The officer filed report no. Second Report. The company continues to operate in the normal course of business under its NOI stay, with sales and gross profit down year over year, while pursuing a refinancing with Waygar and a possible SISP if the refinancing fails.
Source: Trustee’s Report on the Business and Financial Affairs
Request for a Fourth Extension of Time for Filing a Proposal (without exhibits) — Application / notice of application
Request for a Third Extension of Time for Filing a Proposal (without exhibits) — Application / notice of application
The officer filed report no. First Report. Kanwal continues to operate in the normal course of business, producing sealing parts and mud flaps, while pursuing a refinancing with Waygar and a court-approved SISP as a fallback; sales and gross profit for the two months to August 31, 2020 fell versus 2019. The trustee recommends a 45-day extension to November 27, 2020 to file a proposal.
Source: Trustee's Report on the Business and Financial Affairs
Request for a Second Extension of Time for Filing a Proposal — Application / notice of application
Request for a First Extension of Time for Filing a Proposal and for the Approval of a SISP — Application / notice of application
Debtor
Kanwal INC. AND 9058-0150 QUEBEC Inc
Monitor
PwC
Bench
| Judge | Court | On this docket | Cases on record |
|---|---|---|---|
| Justice Dumas | Superior Court of Québec | 5 orders, Mar 2021 – Jan 2023 | 5 cases on record |
Counsel of record
| Party | Counsel | First seen | Source |
|---|---|---|---|
| MonitorPwC | Joseph Reynaud Me William Rodier Dumas Stikeman Elliott s.e.n.c.r.l., s.r.l. | 23 Aug 2021 | Order · 23 Aug 2021 |
| DebtorKanwal INC. AND 9058-0150 QUEBEC Inc | Woods LLP | 24 Aug 2021 | Order · 24 Aug 2021 |
| CreditorBank of Montreal | Langlois Avocats · Peden Woods LLP | 31 Aug 2020 | Order · 11 Jan 2021 |
| CreditorBanque Laurentienne du Canada | Langlois Avocats | 23 Aug 2021 | Order · 23 Aug 2021 |
| Creditorcréancière garantie Banque de Montréal | Langlois Avocats | 23 Aug 2021 | Order · 23 Aug 2021 |
| CreditorMNP Ltd | Fishman Flanz Meland Paquin LLP | 23 Aug 2021 | Order · 23 Aug 2021 |
| CreditorVenbridge Ltd | Colas Kazandjian · Langlois Avocats | 19 Mar 2021 | Order · 23 Aug 2021 |
| # | Priority class | Creditor | Amount | Source |
|---|---|---|---|---|
| 4 | Secured | FIRST WEST CAPITAL UNIONdebtor: Kanwal Inc. | $12.2M | List of Creditors |
| 4 | Secured | |||
| 4 | Secured | |||
| 4 | Secured | |||
| 4 | Secured | |||
| 4 | Secured | |||
| 4 | Secured | |||
| 4 | Secured | |||
| 4 | Secured | |||
| 4 | Secured |
210 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 plansSale closed — La Transaction avec Ekip Innovations Inc. a clôturé le 1er octobre 2021Second Report (amended) of the Receiver on the Business and Financial… · 20 Oct 2022
| Purchaser | Price | Status | Source |
|---|---|---|---|
| Ekip Innovations inc.Purchased Assets of Kanwal inc. (assets of the debtor, with continuity of operations), under the Asset Purchase Agreement · asset sale · nominee/assignee: Scott Sinclair or a company to be formed · agreement 5 Aug 2021 | Subscribers | Closed1 Oct 2021 | Second Report (amended) of the Receiver on the… |
As at ·
Cumulative receipts
$4.88M
As at 20 Oct 2022Second Report (amended) of the Receiver on the Business and Financial Affairs of the debtor (in French only)
Cumulative disbursements
As at
Cash on hand
As at
Professional fees
As at
3 more reported figures, and the total the debtor stated at filing
Each one as the filing states it, with its source.
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See all plans| Date | Document | File |
|---|---|---|
Judgment (in French only)
| PDF · Subscribers | |
Second Report (amended) of the Receiver on the Business and Financial Affairs of the debtor (in French only)
| PDF · Subscribers | |
| Motion for directions and for the issuance of an order approving a distribution to secured creditors (in French only) | PDF · Subscribers | |
Amended Order
| PDF · Subscribers | |
Vesting Order
| PDF · Subscribers | |
First Report of the Receiver on the Business and Financial Affairs of the debtor (in French only)
| PDF · Subscribers | |
| Motion to obtain a Vesting Order | PDF · Subscribers | |
Safeguard Order
| PDF · Subscribers | |
| Motion to obtain a Safeguard Order (in French only) | PDF · Subscribers | |
Sale and Investor Solicitation Process Letter
| PDF · Subscribers | |
Notice and Statement of the Receiver
| PDF · Subscribers | |
Order appointing a Receiver
| PDF · Subscribers | |
Motion for the appointment of a Receiver (amended)
| PDF · Subscribers | |
Order (in French only)
| PDF · Subscribers | |
| Application for approval of Interim Financing and for an Extension of the Stay of Proceedings | PDF · Subscribers | |
Third Report of the Monitor on the Business and Financial Affairs of the Debtor Companies
| PDF · Subscribers | |
| Application for an Extension of the Stay of Proceedings | PDF · Subscribers | |
Notice to Creditors of the Initial Order
| PDF · Subscribers | |
Second Report of the Monitor on the Business and Financial Affairs of the Debtor Companies
| PDF · Subscribers | |
Initial Order
| PDF · Subscribers | |
List of Creditors
| PDF · Subscribers | |
| Application for an initial order under the CCAA and for the continuation of proceedings commenced under BIA | PDF · Subscribers | |
| First Report of the Proposed Monitor on the Business and Financial Affairs of the Debtor Company | PDF · Subscribers | |
Order Fourth Extension of Time
| PDF · Subscribers | |
| Request for a Fourth Extension of Time for Filing a Proposal (without exhibits) | PDF · Subscribers | |
Trustee’s Report on the Business and Financial Affairs
| PDF · Subscribers | |
| Order Third Extension of Time | PDF · Subscribers | |
| Request for a Third Extension of Time for Filing a Proposal (without exhibits) | PDF · Subscribers | |
| Order Second Extension of Time (in French only) | PDF · Subscribers | |
| Request for a Second Extension of Time for Filing a Proposal | PDF · Subscribers | |
Trustee's Report on the Business and Financial Affairs
| PDF · Subscribers | |
Order First Extension of Delay and SISP
| PDF · Subscribers | |
| Statement of Projected Cash Flow for the Period | PDF · Subscribers | |
| Request for a First Extension of Time for Filing a Proposal and for the Approval of a SISP | PDF · Subscribers | |
Notice of Filing of Intention to Make a Proposal
| 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., “Kanwal INC. AND 9058-0150 QUEBEC Inc” (CCAA), Superior Court of Québec. Retrieved 4 November 2026, https://proceedings.ca/case/kanwal-inc-and-9058-0150-quebec-inc