#Order
Justice Kettle approved the proposal under section 59(2) of the BIA, meeting the September 30, 2026 deadline for court approval set by the forbearance agreement with PeterT Holdings Inc.
Source: Court Order Approving Proposal
Laundry Collective Inc.
ActiveFollow
- Proceeding
- ProposalBankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, as amended
- File
- BK-26-03412398-0035
OverviewSummary updated
Laundry Collective Inc. filed a Division I proposal under Part III of the Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, as amended, commenced on August 20, 2026 in the Ontario Superior Court of Justice. MNP Ltd. is acting as licensed insolvency trustee under the proposal.
Proceedings AIOpen Proceedings AI
Case updates2 dated entries
#Claims
Proposal put to creditors offering Ordinary Creditors 25% of proven claims, against aggregate ordinary claims of $3,816,950, with Crown, Preferred and Employee Claims paid in full; the trustee valued unsecured recovery in a bankruptcy at nil.
Source: Creditors Package
AnalysisAll insights
Outcome brief
Laundry Collective: shareholder loans to zero, ordinary creditors at 25%
The holding company over four hotels in Hamilton, Cambridge, Kitchener and Waterloo, whose statement of affairs puts its assets at $5.00, won approval on September 25, 2026 for a BIA proposal that pays ordinary creditors 25% of an estimated $3,816,950, takes $1,284,593 in continuing shareholders' loans to zero, and leaves its $1,000,000 secured lender outside the compromise.
Parties
Debtor
Laundry Collective Inc.
Proposal trustee
MNP
Capital structureAs asserted in the filings
| # | Priority class | Creditor | Amount | Source |
|---|---|---|---|---|
| 4 | Secured | PeterT Holdings Inc.General security against the Company's assets (registered in Ontario PPSR); also holds general security against the Hotel Subsidiaries' assets — Amount stated as '$1,000,000 plus ongoing interest and legal costs'; Proposal does not amend or affect existing payment/security arrangements with this Secured Creditor, so this creditor has no claim in the Proposal. Company defaulted on credit facility interest; Secured Creditor issued Notices of Intention to enforce security dated 2026-05-12; forbearance agreement in place requiring court approval of Proposal by 2026-09-30. — debtor: Laundry Collect · as of 19 Aug 2026 | $1M | Creditors Package |
| 7 | Preferred (BIA s. 136) | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured |
32 more claims in 2 classes The stack holds Secured, Preferred (BIA s. 136) and Unsecured claims.
Every creditor and every amount, drawn to scale.
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See all plansRecoveriesAs stated in the filings
Unsecured creditors: a distribution.Under the plan · sanctionedCreditors Package · 20 Aug 2026
| Class | Creditor | Claims | Recovery | Basis | Source |
|---|---|---|---|---|---|
| Deemed trust | — | — | paid in fullconditional | Under the plansanctionedper the trustee | Creditors Package · 20 Aug 2026 |
| Preferred | — | — | paid in fullconditional | Under the plansanctionedper the trustee | Creditors Package · 20 Aug 2026 |
| Unsecured | — | — | of proven claimsconditional | Under the plansanctionedper the trustee | Creditors Package · 20 Aug 2026 |
| Equity | Continuing Shareholders | — | no distribution | Under the plansanctionedper the trustee | Creditors Package · 20 Aug 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.
1 blurred figure above
The claims and what each class or creditor recovers — each as the filing states it, with its source.
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See all plansDocuments2 filings
| Date | Document | File |
|---|---|---|
Court Order Approving Proposal
| PDF · Subscribers | |
Creditors Package
| 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., “Laundry Collective Inc.” (Proposal), Ontario Superior Court of Justice. Retrieved 4 November 2026, https://proceedings.ca/case/laundry-collective-inc