KGIC Group is in court-appointed receivership in the Supreme Court of British Columbia, file S-170738, following a receivership order of 22 February 2017 on the application of CIBT Finance (2017) Corp. BDO Canada Limited holds appointments as interim receiver and as receiver and manager. CIBT Finance took an assignment of Bank of Montreal's bank debt, $12,958,000 as at 30 September 2016, and issued a s. 244 notice to enforce its security; it is related to Sprott Shaw and to CIBT Education Group Inc., an interested purchaser. KGIC Inc.'s unaudited consolidated balance sheet at 30 September 2016 showed assets of $16,690,000 against liabilities of $34,643,000 and a shareholders' deficit of $(17,953,000), including $8,098,000 of trade names, IP development and goodwill the receiver says may have negligible value in a liquidation. A proposed debt restructuring and equity conversion was rejected by a significant block of unsecured convertible debenture holders.
The court granted an approval and vesting order for the sale to CIBT Finance (2017) Corp. Closing terms, as extracted: vacant possession delivered at 12:00 noon on the Closing Date, Receiver at liberty to extend Closing Date with Purchaser's consent.
Source: Approval and Vesting Order
The officer filed report no. Second Report. KGIC's schools continued to face severe negative cash flow, requiring Receiver's Certificate borrowing to cover payroll and rent, with regulators warning that program cancellations could force campus closures absent an urgent resolution.
Receivership order made on CIBT Finance (2017) Corp.'s application, placing the KGIC Group under BDO Canada Limited's control as receiver and manager.
Source: Receivership Order of the Honourable Justice Affleck dated February 22, 2017
The officer filed report no. Second Report. The Receiver and Interim Manager continue to stabilize and operate the KGIC Group's colleges across 18 campuses, funding payroll and rent through borrowings and tuition receipts while pursuing a sale transaction, as the business remains cash-flow negative and not viable without ongoing support.
Source: Second Report of the Receiver
Receivership order made by the Supreme Court of British Columbia under BIA s. 243 and provincial Judicature Act authority, commencing the proceeding under court file S-170738.
Source: Interim Receivership Order of the Honourable Justice Adair dated January 25, 2017
Debtor
KGIC Group
Receiver
BDO
| # | Priority class | Creditor | Amount | Source |
|---|---|---|---|---|
| 4 | Secured | Bank of Montreal (BMO) / CIBT Finance (2017) Corp. (assignee) · in 279 casesBank Debt (line item on consolidated balance sheet); security enforced via s.244 Notice — Labelled 'Bank Debt' on Q3 2016 unaudited consolidated balance sheet ($,000's, so $12,958,000). CIBT Finance (2017) Corp. ('CF2017') has taken an assignment of BMO's debt and issued a s.244 Notice to enforce its security. CF2017 is related to Sprott Shaw and CIBT Education Group Inc. (interested purchaser), a related-party dynamic. — debtor: KGIC Inc. · as of 30 Sep 2016 | $13M | Preliminary Report of the Receiver - 25 January 2017 |
| 8 | Unsecured | Trade creditors (Accounts Payable, aggregate as reported) · in 11 casesAggregate figure as reported; document names no individual trade creditors. — debtor: KGIC Inc. · as of 30 Sep 2016 | $7.58M | Preliminary Report of the Receiver - 25 January 2017 |
| 8 | Unsecured | Deferred Revenue (student prepayments, aggregate as reported)Represents student tuition prepayments recorded as a liability; aggregate figure, no individual creditors named. — debtor: KGIC Inc. · as of 30 Sep 2016 | $6.72M | Preliminary Report of the Receiver - 25 January 2017 |
| 8 | Unsecured | Unsecured convertible debenture holdersSubject to proposed (rejected) debt restructuring/equity conversion plan; plan rejected by a significant block of unsecured convertible debenture holders per Q3 2016 press release. — debtor: KGIC Inc. · as of 30 Sep 2016 | $6.54M | Preliminary Report of the Receiver - 25 January 2017 |
| 8 | Unsecured | Unsecured commercial bank overdraft facility (unnamed bank)Described as 'unsecured and unauthorized overdraft facility with a commercial bank'; extreme uncertainty as to bank's willingness to extend it. — debtor: KGIC Inc. · as of 30 Sep 2016 | $1.34M | Preliminary Report of the Receiver - 25 January 2017 |
| 8 | Unsecured | Shareholder Loan · in 2 casesRelated party (shareholder) debt. — debtor: KGIC Inc. · as of 30 Sep 2016 | $711K | Preliminary Report of the Receiver - 25 January 2017 |
| 8 | Unsecured | Leasehold InducementsAggregate figure as reported. — debtor: KGIC Inc. · as of 30 Sep 2016 | $128K | Preliminary Report of the Receiver - 25 January 2017 |
| 8 | Unsecured | Taxes Payable (aggregate as reported)Aggregate figure as reported; no specifics on whether this is a deemed-trust/regulatory class provided in this excerpt. — debtor: KGIC Inc. · as of 30 Sep 2016 | $6K | Preliminary Report of the Receiver - 25 January 2017 |
Sale approvedApproval and Vesting Order · 15 Mar 2017
| Purchaser | Price | Status | Source |
|---|---|---|---|
| CIBT Finance (2017) Corp.the assets described in the Sale Agreement (the "Purchased Assets") · asset sale · nominee/assignee: Designated Purchaser · agreement 3 Mar 2017 | not stated | Approved15 Mar 2017 | Approval and Vesting Order |
Unsecured creditors: no recovery. Bank of Montreal short · CIBT short.EstimatedSecond Report of the Receiver – March 7 2017 · 7 Mar 2017
| Class | Creditor | Claims | Recovery | Basis | Source |
|---|---|---|---|---|---|
| Secured | debenture holders | — | shortfall | Estimatedper the receiver | Second Report of the Receiver – March 7 2017 · 7 Mar 2017 |
| Secured | Bank of Montreal | $12.1M | shortfall | Estimatedper the receiver | Second Report of the Receiver – March 7 2017 · 7 Mar 2017 |
| Secured | CIBT | — | shortfall | Estimatedper the receiver | Second Report of the Receiver – March 7 2017 · 7 Mar 2017 |
| Unsecured | — | — | no recovery | Estimatedper the receiver | Second Report of the Receiver – March 7 2017 · 7 Mar 2017 |
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 2016 · per Q3 2016 consolidated Balance Sheet of KGIC Inc. as filed with SEDAR, described as unaudited · Consolidated - KGIC Inc. and its operating subsidiaries (KGIC Group) — Shareholders' deficit of $(17,953,000). Of total assets, $8,098,000 comprised of trade names, IP development and goodwill, which the Receiver notes 'may have negligible value in a liquidation.' Receiver anticipates recoveries from Prepaid expenses, Rent deposits, Intangible assets and Goodwill could be nominal, and recoveries from Inventory, Accounts receivable and Capital assets could be severely impaired.
Cumulative receipts
$1.34M
As at 16 Feb 2017Second Report of the Receiver
Cumulative disbursements
$1M
As at 16 Feb 2017Second Report of the Receiver
| Date | Document | File |
|---|---|---|
Approval and Vesting Order
| ||
Supplement to the First Report with Exhibit
| ||
Second Report of the Receiver – March 7 2017
| ||
Receivership Order of the Honourable Justice Affleck dated February 22, 2017
| ||
Second Report of the Receiver
| ||
Entered Order dated February 14, 2017
| ||
| First Report of the Receiver - 3 February 2017 | ||
Interim Receivership Order of the Honourable Justice Adair dated January 25, 2017
| ||
| Letter to Employees and Management | ||
Preliminary Report of the Receiver - 25 January 2017
| ||
Filing titles, dates, and extracted key facts are public.
CiteProceedings., “KGIC Group” (Receivership (court-appointed)), Supreme Court of British Columbia. Retrieved 20 September 2026, https://proceedings.ca/case/kgic-group
Sources last checked · summary updated 21 August 2026 · Report a correction · Printed from proceedings.ca/case/kgic-group
Facts and summaries are extracted automatically from the court filings linked on each page; the filings remain the authoritative record. Suggested corrections are reviewed against the source filings.