Machine Works Industrial Inc.
Follow- Proceeding
- Receivership (court-appointed)section 243(1) of the Bankruptcy and Insolvency Act, and sections 13(2) of the Judicature Act, 99(a) of the Business Corporations Act, and 65(7) of the Personal Property Security Act
- File
- 1903-21122
Machine Works Industrial Inc. has been under court-appointed receivership in Alberta since August 13, 2019, when Royal Bank of Canada obtained the appointment of Deloitte Restructuring Inc. as Receiver under section 243(1) of the Bankruptcy and Insolvency Act, section 13(2) of the Judicature Act, section 99(a) of the Business Corporations Act and section 65(7) of the Personal Property Security Act, in Court file 1901-07789. RBC claims $1,955,290 plus interest and costs under a general security agreement over all present and after-acquired personal property, which counsel opined is valid, binding, enforceable and validly perfected. Canada Revenue Agency asserted deemed trust claims ranking ahead of all secured creditors by correspondence dated December 20, 2019, comprising $71,781 in GST/HST and $32,852.48 in source deductions. The Receiver confirmed payment of $19,794.92 to Employment and Social Development Canada on its subrogated Wage Earner Protection Program claim arising from 14 employee proofs of claim. Jim Peplinski Leasing Inc. claims $214,589 plus G.S.T. under a February 12, 2019 master lease on vehicles, with security counsel considered properly perfected. CWB National Leasing's $28,159 computer equipment lease ranks behind RBC's GSA, its financing statement having been registered August 15, 2019, 17 days after delivery on July 29, 2019 and outside the 15-day PPSA window. The proceeding remains active.
Bankruptcy Order July 2, 2020 was filed. Court file 1903-21122.
Source: Bankruptcy Order July 2, 2020
The officer filed report no. Supplemental Second Report of the Receiver.
Source: Supplemental Second Report of the Receiver dated March 4, 2020
The court granted an approval and vesting order for the sale to Century Services Corp. Closing terms, as extracted: Vesting occurs upon delivery of the Receiver's Closing Certificate confirming payment of the Purchase Price, satisfaction/waiver of closing conditions, and completion of the Transaction. Sealed: Confidential Supplement.
Source: Approval and Vesting Order (Sale by Receiver) October 29, 2019
Application by Receiver re: Vesting Order October 21, 2019 was filed. Court file 1903 21122.
Source: Application by Receiver re: Vesting Order October 21, 2019
Receivership order pronounced August 13, 2019, placing the company into court-appointed receivership under BIA s. 243 and commencing the Alberta proceeding under file 1901-07789.
Debtor
Machine Works Industrial Inc.
Receiver
Deloitte
Bench
| Judge | Court | On this docket | Cases on record |
|---|---|---|---|
| Justice Topolniski | Court of King's Bench of Alberta | 1 order, Jul 2020 | 12 cases on record |
Counsel of record
| Party | Counsel | First seen | Source |
|---|---|---|---|
| ReceiverDeloitte | Duncan & Craig LLP | 8 Oct 2019 | Order · 8 Oct 2019 |
| ApplicantRoyal Bank of Canada | Burn Uckwgrtm & P Almer LLP | 8 Oct 2019 | Order · 8 Oct 2019 |
| CreditorDarren R. Bieganek, QC | Duncan & Craig LLP | 13 May 2021 | Application · 13 May 2021 |
| # | Priority class | Creditor | Amount | Source |
|---|---|---|---|---|
| 3 | Deemed trusts (CRA and other) | Canada Revenue Agency · in 926 casesDeemed trust claim (source deductions component of $87,696.88 total indebtedness) ranking in priority to all secured creditors, per CRA correspondence dated December 20, 2019. — debtor: Machine Works Industrial Inc. · as of 20 Dec 2019 | $32.9K | Filed Second Report of Receiver Filed March 2, 2020 |
| 4 | Secured | Royal Bank of Canada · in 556 casesGeneral Security Agreement against all present and after-acquired personal property — Stated as $1,955,290 plus interest and costs; legal counsel opined security is valid, binding, enforceable and validly perfected under PPSA. — debtor: Machine Works Industrial Inc. | $1.96M | Filed Second Report of Receiver Filed March 2, 2020 |
| 4 | Secured | Jim Peplinski Leasing Inc. · in 7 casesMaster Lease Agreement dated February 12, 2019 on vehicles, with 9 subsequent 'Offer to Lease' agreements — Stated as $214,589 plus G.S.T.; legal counsel opined security properly perfected with no registration issues. — debtor: Machine Works Industrial Inc. | $215K | Filed Second Report of Receiver Filed March 2, 2020 |
| 4 | Secured | CWB National Leasing · in 21 casesLease Agreement on computer equipment — CWB failed to register financing statement within 15-day PPSA window after debtor took possession (registered Aug 15, 2019, 17 days after July 29, 2019 delivery); as a result RBC's GSA has priority over CWB's collateral and proceeds despite CWB's registration. — debtor: Machine Works Industrial Inc. | $28.2K | Filed Second Report of Receiver Filed March 2, 2020 |
| 4 | Secured | Employment and Social Development Canada (ESDC) · in 4 casesSubrogated secured claim under Wage Earner Protection Program (WEPP) — Arising from 14 employee proofs of claim; Receiver confirmed payment of this amount to ESDC. — debtor: Machine Works Industrial Inc. | $19.8K | Filed Second Report of Receiver Filed March 2, 2020 |
This proceeding was commenced by a secured creditor. The record does not include the debtor’s own statement of assets and liabilities — that ceiling is the record’s, not this page’s.
Sale closed — The sale of the Company's Property to Century has been completedFiled Second Report of Receiver Filed March 2, 2020 · 2 Mar 2020
| Purchaser | Price | Status | Source |
|---|---|---|---|
| Century Services Corp.the Transferred Assets, as described in the Sale Agreement (the "Purchased Assets") · asset sale · agreement 11 Oct 2019 | $1.28Mrealizations total $1,285,000, which is $15,000 less than the approved purchase price of $1,300,000 | Closeddate not stated | Filed Second Report of Receiver Filed March 2,… |
Peplinski: $225K.Supplemental Second Report of the Receiver · 4 Mar 2020
| Class | Creditor | Claims | Recovery | Basis | Source |
|---|---|---|---|---|---|
| Secured | Peplinski | — | $225K | per the receiver | Supplemental Second Report of the Receiver · 4 Mar 2020 |
| Secured | RBC | — | $1.7M | per the receiver | Supplemental Second Report of the Receiver · 4 Mar 2020 |
| PMSI / lessor | Equirex, a Division of Bennington Financial Corp. | $32Klisted | $32K | per the receiver | Supplemental Second Report of the Receiver · 4 Mar 2020 |
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.
2 engagements · 2 firms — latest: Deloitte Restructuring Inc., 12 Aug – 31 Dec 2019, $180,682.00Filed Second Report of Receiver Filed March 2, 2020 · 2 Mar 2020
| Firm | Period | Hours | Fees | Rates | Source |
|---|---|---|---|---|---|
| (firm not named)Counselfirm not named in the heading | 13 Aug – 18 Dec 2019 | — | $19,641.87incl. tax | not stated | Filed Second Report of Receiver Filed March 2, 2020 · 2 Mar 2020 |
| Deloitte Restructuring Inc.Receiver | 12 Aug – 31 Dec 2019 | — | $180,682.00total | not stated | Filed Second Report of Receiver Filed March 2, 2020 · 2 Mar 2020 |
Cash on hand
$2.17M
As at 4 Mar 2020Supplemental Second Report of the Receiver dated March 4, 2020
| Date | Document | File |
|---|---|---|
Application Returnable May 13, 2021
| ||
Bankruptcy Order July 2, 2020
| ||
| Interim Order re Interim Distributions Filed March 20, 2020 | ||
| Application Returnable March 9, 2020 | ||
Supplemental Second Report of the Receiver dated March 4, 2020
| ||
Filed Second Report of Receiver Filed March 2, 2020
| ||
Approval and Vesting Order (Sale by Receiver) October 29, 2019
| ||
Application by Receiver re: Vesting Order October 21, 2019
| ||
Receiver's First Report Filed October 21, 2019
| ||
Consent Order Granted October 8, 2019
| ||
Receivership Order Granted August 13, 2019
| ||
Filing titles, dates, and extracted key facts are public.
CiteProceedings., “Machine Works Industrial Inc.” (Receivership (court-appointed)), Court of King's Bench of Alberta. Retrieved 20 September 2026, https://proceedings.ca/case/machine-works-industrial-inc