Pathway Health Corp. and Pathway Health Services Corp.
- Proceeding
- Receivership (court-appointed)section 243(1) of the Bankruptcy and Insolvency Act and section 13(2) of the Judicature Act
- File
- 2301-10472
- Industry
- Health care · Clinics & medical practices
Pathway Health Corp. and Pathway Health Services Corp. remain in a court-appointed receivership commenced on August 10, 2023 in the Court of King's Bench of Alberta under section 47(1) of the Bankruptcy and Insolvency Act, court file 2301-10472, with KSV Restructuring Inc. acting as Interim Receiver. The appointment does not extend to the companies' subsidiaries. On estimated book values from the companies' internal financial statements as at September 30, 2023, Pathway Health Corp. reported total assets of $39,284 and Pathway Health Services Corp. $707,585, with realizable values likely to differ materially. A preliminary creditor list as at October 2, 2023 shows secured claims of $5,608,656.79 to Avonlea-Drewry Holdings Inc., $1,363,794.80 to Heal Global Holdings Corp. and $170,000 to Aphria Inc., the latter two funders also holding the Interim Receiver's borrowing certificates. The largest unsecured claim listed is $647,791 owed to Lawson Lundell LLP.
Order Approving Sale and Vesting dated October 2, 2023 was filed.
Source: Order Approving Sale and Vesting dated October 2, 2023
The court appointed KSV Restructuring Inc. as Receiver, on the application of AVONLEA-DREWRY HOLDINGS INC.. Court file 2301-10472.
Application (Receivership and Sale Process Approval) returnable October 2, 2023 — Application / notice of application
Application Record re Receivership and Sale Process Approval returnable October 2, 2023 — Application / notice of application
The officer filed report no. Second Report. The Companies ceased operations after directors resigned; a consultant has been operating a remote/online model with most leases disclaimed, while the Interim Receiver pursues a stalking horse sale and SISP for substantially all assets.
Source: Second Report of the Interim Receiver dated September 28, 2023
Application (First Extension of Interim Receiver) returnable Sepember 1, 2023 — Application / notice of application
The officer filed report no. First Report. The Companies ceased operations when management and directors resigned on July 28, 2023; under the Interim Receiver's oversight and a retained Consultant, they have restarted operations at a reduced level with critical personnel re-engaged, funded by short-term advances from ADH and Aphria while a restructuring plan and pending asset sales are pursued.
Source: First Report of the Interim Receiver dated August 31, 2023
Court of King's Bench of Alberta pronounced the receivership order over both Pathway companies, commencing the proceeding under court file 2301-10472.
Interim Receivership Application returnable August 10, 2023 — Application / notice of application
Undated filings1 — no date appears on the document · show
Debtor
Pathway Health Corp. and Pathway Health Services Corp.
Receiver
KSV
Bench
| Judge | Court | On this docket | Cases on record |
|---|---|---|---|
| Justice Nixon | Court of King's Bench of Alberta | 3 orders, Oct 2023 | 53 cases on record |
Counsel of record
| Party | Counsel | First seen | Source |
|---|---|---|---|
| CreditorADH | Dentons Canada LLP | 2 Oct 2023 | Application · 2 Oct 2023 |
| # | Priority class | Creditor | Amount | Source |
|---|---|---|---|---|
| 4 | Secured | Avonlea-Drewry Holdings Inc.Revolving credit facility, secured promissory note, and Interim Receiver's first borrowing certificate — Prose approximation stated as ~$5.6 million; exact balance from Appendix A preliminary list as at October 2, 2023 — debtor: Pathway Health Corp. and Pathway Health Services Corp. · as of 2 Oct 2023 | $5.61M | Notice and Statement of the Receiver dated October 12, 2023 |
| 4 | Secured | |||
| 4 | Secured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured |
64 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 plansThis 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 process approved — The procedure for sale and investment solicitation, substantially as set out in the attached Schedule '1.1(yyy)' to the Stalking Horse APA, is commercially reasonable and is hereby ratified and approved.Order Approving SISP dated October 2, 2023 · 2 Oct 2023
| Purchaser | Price | Status | Source |
|---|---|---|---|
| Avonlea-Drewry Holdings Inc.Stalking horsethe property and undertaking described and conveyed in the Stalking Horse APA (the ' Purchased Assets ') · asset sale · nominee/assignee: its nominee · agreement 24 Oct 2023 | Subscribers | Approved2 Oct 2023outside 7 Dec 2023 | Order Approving Sale and Vesting dated October… |
2 engagements · 2 firms — latest: Burnet, Duckworth & Palmer LLP, 1 Aug – 24 Sep 2023, in feesSecond Report of the Interim Receiver · 28 Sep 2023
| Firm | Period | Hours | Fees | Rates | Source |
|---|---|---|---|---|---|
| Burnet, Duckworth & Palmer LLPCounsel to the receiver | 1 Aug – 24 Sep 2023 | — | not stated | Second Report of the Interim Receiver · 28 Sep 2023 | |
| KSV Restructuring Inc.Interim receiver | 1 Aug – 24 Sep 2023 | — | not stated | Second Report of the Interim Receiver · 28 Sep 2023 |
2 blurred figures above
What each firm billed — each as the filing states it, with its source.
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See all plansProfessional fees
$82.7K
As at 24 Sep 2023Second Report of the Interim Receiver dated September 28, 2023
| Date | Document | File |
|---|---|---|
Notice and Statement of the Receiver dated October 12, 2023
| PDF · Subscribers | |
Application (Receivership and Sale Process Approval) returnable October 2, 2023
| PDF · Subscribers | |
Application Record re Receivership and Sale Process Approval returnable October 2, 2023
| PDF · Subscribers | |
Order Approving SISP dated October 2, 2023
| PDF · Subscribers | |
Order Approving Sale and Vesting dated October 2, 2023
| PDF · Subscribers | |
Receivership Order dated October 2, 2023
| PDF · Subscribers | |
Second Report of the Interim Receiver dated September 28, 2023
| PDF · Subscribers | |
| Affidavit No. 3 of Michael Steele sworn September 24, 2023 | PDF · Subscribers | |
| Application (First Extension of Interim Receiver) returnable Sepember 1, 2023 | PDF · Subscribers | |
Interim Receivership Extension Order dated September 1, 2023
| PDF · Subscribers | |
First Report of the Interim Receiver dated August 31, 2023
| PDF · Subscribers | |
| Affidavit No. 2 of Michael Steele sworn August 29, 2023 | PDF · Subscribers | |
| Affidavit of Terry Trojanoski sworn August 10, 2023 | PDF · Subscribers | |
| Interim Receivership Application returnable August 10, 2023 | PDF · Subscribers | |
Interim Receivership Order dated August 10, 2023
| PDF · Subscribers | |
| Affidavit of Michael Steele sworn August 9, 2023 | PDF · Subscribers | |
Pathway Teaser
| 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., “Pathway Health Corp. and Pathway Health Services Corp.” (Receivership (court-appointed)), Court of King's Bench of Alberta. Retrieved 4 November 2026, https://proceedings.ca/case/pathway-health-corp-and-pathway-health-services-corp