Proceedings.

Paystone Holdings Inc., Paystone Inc., Atom Growth Inc. and Atom Growth (USA), Inc.

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Active
Proceeding
CCAACompanies' Creditors Arrangement Act, R.S.C. 1985, c. C-36, as amended
Court
Ontario Superior Court of Justice · Commercial List
File
CL-26-00000261-0000
Filings held63
Last activity18 Sep 2026
On the record108 days
Secured debt$89.1M
OverviewSummary updated

Paystone Holdings Inc., Paystone Inc., Atom Growth Inc. and Atom Growth (USA), Inc. have been under CCAA protection in the Ontario Superior Court of Justice (Commercial List) since June 5, 2026, in court file CL-26-00000261-0000. The group operates three business lines: payment solutions and payment processing; loyalty, gift card and customer engagement programs; and marketing, reputation and customer growth software. The proceedings are intended to stabilise operations in the ordinary course long enough to complete a going-concern transaction with minimal customer loss. The initial stay ran to June 15, 2026, when the court made a further interim order. On July 10, 2026 the court approved a sale and investment solicitation process to be conducted by the Monitor, with bids due by 5:00 p.m. on August 4, 2026. An Administration Charge of $745,000 secures the Monitor, the Monitor's counsel, the CRO and the Applicants' counsel ahead of all other security interests, liens and secured creditor claims.

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Case updates65 dated entries
#Report

The officer filed report no. Fifth Report. The Monitor completed a court-supervised sale process (SISP) and selected a related-party bid from 100 Ontario as the Successful Bid after no bid provided sufficient cash to repay Sandton in full; the Applicants continue operating in the ordinary course pending closing of the going-concern sale transaction, which will preserve employment for substantially all employees.

Source: Fifth Report of Monitor dated August 21, 2026

AnalysisAll insights⁠

Case update

Paystone: the owners buy it back

In June, Justice Myers refused to let a company controlled by Paystone's principals buy the business. On August 27, Justice Dunphy approved a sale to the same numbered company — after a monitor-run process in which fourteen prospects were canvassed, nine signed NDAs, three bid, and the only rival offer for the whole business died on a single fact: it needed Sandton, owed $92.2 million, to stay on as lender to new owners, and Sandton said no.

Filing brief

Paystone: the bidder who has to help the other bidders

Justice Myers refused Paystone's non-arm's-length prepack in June, on the ground that management was to receive value for equity a balance-sheet insolvency says is worthless. On July 10 he approved a sale process run by the Monitor instead — one in which management may bid, and must hand over the information its competitors will use.

Filing brief

Paystone: the owners want to buy it back, and BDC got a few hours' notice

A payments company's lending syndicate sold out to a distressed fund at a steep discount. Ten days after the initial order, the company intends to seek approval of a sale to a buyer controlled by its own ultimate owners — assuming the new senior debt and leaving the subordinated secured debt, the notes and most of the trade debt unpaid. The subordinate secured creditor learned about the first-day hearing hours before it happened.

Parties

Debtor

Paystone Holdings Inc., Paystone Inc., Atom Growth Inc. and Atom Growth (USA), Inc.

Monitor

AlixPartners

Bench and counselPer the orders and service lists on the record

Bench

JudgeCourtOn this docketCases on record
Justice MyersOntario Superior Court of Justice11 orders, Jun 2026 – Sep 2026103 cases on record
Justice DunphyOntario Superior Court of Justice3 orders, Aug 202674 cases on record

Counsel of record

PartyCounselFirst seenSource
MonitorAlixPartnersOsler, Hoskin & Harcourt LLP9 Jul 2026Factum · 9 Jul 2026
ApplicantPaystone Holdings Inc., Paystone Inc., Atom Growth Inc. and Atom Growth (USA), Inc.Bennett Jones LLP30 Jun 2026Order · 30 Jun 2026
CreditorBDC Capital IncMcMillan LLP9 Jul 2026Factum · 9 Jul 2026
CreditorCBGF 2021, LP and Canadian Business Growth Fund, LPNaymark Law31 Jul 2026Service list · 31 Jul 2026
CreditorCIC Capital Canada IncWeirFoulds LLP31 Jul 2026Service list · 31 Jul 2026
CreditorElavon, IncBorden Ladner Gervais LLP31 Jul 2026Service list · 31 Jul 2026
CreditorKevin RefahMiller Thomson LLP31 Jul 2026Service list · 31 Jul 2026
CreditorMr. LevelyCassels Brock & Blackwell LLP31 Jul 2026Service list · 31 Jul 2026
CreditorNational Bank of CanadaThornton Grout Finnigan LLP31 Jul 2026Service list · 31 Jul 2026
CreditorRAMP InteractiveBorden Ladner Gervais LLP31 Jul 2026Service list · 31 Jul 2026
CreditorRoyal Bank of CanadaDentons Canada LLP31 Jul 2026Service list · 31 Jul 2026
CreditorSandton Investments X (Luxembourg) S.à r.lGoodmans LLP9 Jul 2026Factum · 9 Jul 2026
CreditorSteve Levely and Shopley IncDentons Canada LLP31 Jul 2026Service list · 31 Jul 2026
CreditorWalter AndriChaitons LLP19 Jun 2026Endorsement · 19 Jun 2026
Capital structureAs asserted in the filings
stated amounts, drawn to scale · 3 named without a figure
#Priority classCreditorAmountSource
Court-ordered charges
1Court-ordered chargesAdministration Charge — shall rank in priority to all other security interests, trusts, liens, charges and encumbrances, and claims of secured creditors, statutory or otherwise$745KInitial Order dated June 5, 2026
Pre-filing debt
4SecuredNational Bank of Canada, as Administrative Agent for the Lenders (National Bank of Canada, Fédération des Caisses Desjardins du Québec, Royal Bank of Canada)General security agreement and Supporting Documents over all present and after-acquired property (incl. IP) of Borrower and Corporate Guarantors (Article 12 of Credit Agreement); guaranteed by Paystone Holdings Inc., Atom Growth Inc., Atom Growth (USA), Inc.; also secured by joint and several Personal Guarantee of Tarique Al-Ansari and Abdullah Saab (individuals, not companies), limited under the Credit Agreement to a principal limit of $1,000,000 plus interest and costs (increased from an original $500,000 limit) — Term Facility limited to Total Term Facility Commitment of $90,000,000 (facili · as of 9 Feb 2026$89.1MApplication Record dated June 5, 2026 - Volume 2 of 2
4SecuredThe Bank of Nova Scotia · in 110 casesListed under 'Secured Creditors' heading of the Service List as at June 5, 2026; also holds a deposit/current account for the Corporate Obligors per the Forbearance Agreement recitals; no balance stated in reviewed pages—Application Record dated June 5, 2026 - Volume 2 of 2
4SecuredSandton Investments X (Luxembourg) S.À R.L.Listed under 'Secured Creditors' heading of the Service List as at June 5, 2026 (represented by Goodmans LLP); relates to a Loan Purchase Agreement dated May 8, 2026 and Sandton Forbearance Agreement dated May 8, 2026, neither of which is among the reviewed pages; no balance stated in reviewed pages—Application Record dated June 5, 2026 - Volume 2 of 2
4SecuredBDC Capital Inc. (wholly-owned subsidiary of Business Development Bank of Canada) · in 30 casesPostponement/subordination arrangements with the Senior Agent under a Priority Agreement dated Feb 29, 2024 (as amended); guarantee and general security agreement security, including new security added for Ackroo Inc.; corporate guarantors: Paystone Holdings Inc., Atom Growth Inc., Atom Growth (USA), Inc., Ackroo Inc.; personal guarantors: Tarique Al-Ansari and Abdullah Saab (individuals, not companies) — BDC Capital Financing No. 171991-03; no outstanding balance figure stated in reviewed pages. Interest rate amended to Floating Base Rate (7.05%) + 5.00% Variance = 12.05% effective April 4, 2—Application Record dated June 5, 2026 - Volume 2 of 2

“not stated” means the record names the claim without a figure; “—” means not in the extracted record.

Sale processAs stated in the filings

2 transactions · 1 not completed · 1 approved — The Transaction has been approved by the Court and the parties are working to close it, with the outside date extended; closing had not yet occurred as of this report.Sixth Report of the Monitor dated September 15, 2026 · 15 Sep 2026

Bid deadline (round closed)

4 August 2026

SISP Approval Order dated July 10, 2026

PurchaserPriceStatusSource
1001632600 Ontario Inc.Related partythe Applicants' right, title and interest in and to the assets described in the APA (the 'Purchased Assets') · asset sale · agreement 18 Aug 2026SealedInitial Sale Transaction; declined by the Court, superseded by SISP processNot completedApproval and Vesting Order dated August 27, 2026
1001632600 Ontario Inc.Related partya going-concern sale of substantially all of the Applicants' business and assets · asset sale · agreement 18 Aug 2026$60M (mixed consideration)payment in cash of Priority Payables, Cure Costs and Wind-Up Reserve; assumption of Assumed Liabilities; and entry into New Credit Agreement with SandtonApprovedoutside 31 Aug 2026Sixth Report of the Monitor dated September 15,…
Closing termsvesting effective upon delivery of Monitor's Certificate confirming payment, satisfaction of conditions, Sandton confirmation of New Credit Agreement, and completion of Sale TransactionApproval and Vesting Order dated August 27, 2026
RecoveriesAs stated in the filings

BDC Capital Inc.: no recovery.EstimatedThird Report of Monitor · 30 Jun 2026

ClassCreditorClaimsRecoveryBasisSource
UnsecuredBDC Capital Inc.$12Massertedno recoveryconditionalEstimatedThird Report of Monitor · 30 Jun 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.

Estate financialsReported figures — never derived
Total assets at filing$50.6M
Total liabilities at filing$118M

As at 30 Apr 2026 · per consolidated unaudited balance sheet · consolidated - Applicants (Paystone Holdings Inc., Paystone Inc., Atom Growth Inc., Atom Growth (USA), Inc.) — Asset breakdown: Cash $764,000; Trade/other receivables $6,037,000; Prepaid expenses $788,000; Inventory $261,000; Contract Assets $7,990,000; Property and equipment $706,000; Intangibles $34,082,000 (total $50,628,000). Liability breakdown: Trade/AP/Accrued Liabilities $10,422,000; Deferred Revenues $232,000; Promissory Notes $4,349,000; Senior Credit Facilities $91,296,000; BDC Loan $11,638,000 (total $117,937,000). Affidavit notes net realizable value of assets is virtually certain to be less than book value in light of Pre-Filing Process bids received.

Cumulative receipts

$13.6K

As at 6 Jul 2026Fourth Report of the Monitor dated July 6, 2026

Cash on hand

$800

As at 6 Jul 2026Fourth Report of the Monitor dated July 6, 2026

Professional fees to date

$745K

As at 6 Jul 2026Fourth Report of the Monitor dated July 6, 2026

Documents
63 filings
DateDocumentFile
Endorsement of Justice FL Myers dated September 18, 2026
  • Presiding officer Justice F.L. Myers
PDF
Stay Extension Order dated September 18, 2026
  • Counsel Bennett Jones LLP
  • Presiding officer Justice Myers
PDF
Service List as at September 17, 2026
  • Counsel Borden Ladner Gervais LLP
PDF
Factum of the Applicants dated September 16, 2026PDF
Sixth Report of the Monitor dated September 15, 2026
  • Purchaser 1001632600 Ontario Inc. (related party) · the business and assets of the Applicants · asset sale · not completed; 1001632600 Ontario Inc. · the business and assets of the Applicants · asset sale · approved
  • Sale outcome Sale approved — The Transaction has been approved by the Court and the parties are working to close it, with the outside date extended; closing had not yet occurred as of this report.
PDF
Motion Record of the Applicants dated September 14, 2026PDF
Service List as at September 4, 2026
  • Counsel Bennett Jones LLP
PDF
Ancillary Order dated August 27, 2026
  • Presiding officer Justice Dunphy
PDF
Approval and Vesting Order dated August 27, 2026
  • Closing terms vesting effective upon delivery of Monitor's Certificate confirming payment, satisfaction of conditions, Sandton confirmation of New Credit Agreement, and completion of Sale Transaction
  • Purchaser 1001632600 Ontario Inc. · the Applicants' right, title and interest in and to the assets described in the APA (the 'Purchased Assets') · asset sale · approved
  • Sale outcome Sale approved — the Sale Transaction is hereby approved
PDF
Assignment Order dated August 27, 2026
  • Presiding officer Justice Dunphy
PDF
Endorsement of Justice Dunphy dated August 27, 2026
  • Presiding officer Justice Dunphy
PDF
Factum of the Monitor dated August 24, 2026
  • Counsel Osler, Hoskin & Harcourt LLP
PDF
Affidavit of Abdullah Saab dated August 22, 2026PDF
Service List as at August 22, 2026
  • Counsel Osler, Hoskin & Harcourt LLP
PDF
Fifth Report of Monitor dated August 21, 2026
  • Operational summary The Monitor completed a court-supervised sale process (SISP) and selected a related-party bid from 100 Ontario as the Successful Bid after no bid provided sufficient cash to repay Sandton in full; the Applicants continue operating in the ordinary course pending closing of the going-concern sale transaction, which will preserve employment for substantially all employees.
  • Purchaser 1001632600 Ontario Inc. (related party) · the business and assets of the Applicants · asset sale · proposed; 1001632600 Ontario Inc. (related party) · a going-concern sale of substantially all of the Applicants' business and assets · asset sale · not completed
  • Report date 21 August 2026
  • Report no Fifth Report
  • + 1 more extracted fact
PDF
Fifth Report of the Monitor dated August 21, 2026
  • Purchaser 1001632600 Ontario Inc. (related party) · the business and assets of the Applicants · asset sale · price sealed · proposed; 1001632600 Ontario Inc. (related party) · a going-concern sale of substantially all of the Applicants' business and assets · asset sale · $60M · not completed
  • Sale outcome Approval pending — Following completion of the SISP, the Monitor selected the revised bid submitted by 100 Ontario as the Successful Bid
PDF
Motion Record of the Monitor dated August 21, 2026PDF
Service List as at August 21, 2026
  • Counsel Osler, Hoskin & Harcourt LLP
PDF
Service List as at July 31, 2026
  • Counsel Borden Ladner Gervais LLP
PDF
DIP Approval and BNS Charge Order dated July 10, 2026
  • Presiding officer Justice Myers
PDF
Endorsement of Justice Myers dated July 10, 2026
  • Presiding officer Justice Myers
PDF
SISP Approval Order dated July 10, 2026
  • Bid deadline 4 August 2026
  • Order date 10 July 2026
  • Outside date 31 August 2026
  • Presiding officer Justice Myers
  • + 1 more extracted fact
PDF
Affidavit of Thomas Gray dated July 9, 2026PDF
Factum of the Applicants dated July 9, 2026PDF
Factum of the Monitor dated July 9, 2026
  • Counsel Osler, Hoskin & Harcourt LLP
PDF
Factum of the Respondent, BDC Capital Inc. re SISP Approval Motion dated July 9, 2026
  • Counsel McMILLAN LLP
PDF
Reply Brief of Sandton Investment X dated July 9, 2026
  • Counsel Goodmans LLP
PDF
Fourth Report of the Monitor dated July 6, 2026
  • Cash on hand $800
  • Operational summary The Applicants require a loan to fund their normal-course operations and professional fees associated with the CCAA Proceedings, including the proposed SISP to be conducted by the Monitor.
  • Professional fees $745K
  • Purchaser 1001632600 Ontario Inc. (related party) · a sale transaction · asset sale · not completed
  • + 5 more extracted facts
PDF
Motion Record dated July 6, 2026PDF
Motion Record of the Monitor dated July 6, 2026PDF
Sale and Investment Solicitation Process (SISP)
  • Bid deadline 4 August 2026
  • Outside date 31 August 2026
PDF
Notice of Appearance dated July 2, 2026PDF
Endorsement of Justice Myers dated June 30, 2026
  • Presiding officer Justice Myers
PDF
Stay Extension Order dated June 30, 2026
  • Counsel Bennett Jones LLP
  • Presiding officer Justice Myers
  • Stay extended to 10 July 2026
PDF
Third Report of Monitor dated June 30, 2026
  • Cash on hand $645K
  • Operational summary Since the June 24 Endorsement, the Applicants and the Monitor have engaged with the Applicants' various stakeholders to advance the terms of a sale and investment solicitation process (SISP) to be led by the Monitor and an interim financing facility (DIP Facility) to support operations through closing of a transaction with a successful bidder, as well as address issues raised by the Bank of Nova Scotia (BNS).
  • Professional fees $575K
  • Receipts cumulative $1.33M
  • + 3 more extracted facts
PDF
Factum of the Applicants dated June 29, 2026PDF
Motion Record of Applicants dated June 29, 2026PDF
Endorsement of Justice Myers dated June 24, 2026
  • Presiding officer Justice Myers
PDF
Notice of Appearance dated June 23, 2026PDF
Factum of BDC Capital Inc. dated June 22, 2026PDF
Notice of Appearance of Steve Levely and Shopley Inc. dated June 22, 2026PDF
Supplement to the Second Report of the Monitor dated June 22, 2026
  • Report date 22 June 2026
PDF
Factum of the Applicants dated June 21, 2026PDF
Reply Affidavit of Adam Zalev dated June 21, 2026
  • Financial position Assets $50.6M · Liabilities $118M · as at 30 Apr 2026 · per consolidated unaudited balance sheet (Exhibit E); book values · consolidated - Paystone Holdings Inc., Paystone Inc., Atom Growth Inc., and Atom Growth (USA), Inc. — Applicants state they have no material tangible assets (mainly intangibles/goodwill of $34,082,000); affiant states net realizable value of assets may be, and in light of Pre-Filing Process bids is 'virtually certain' to be, less than book value. Liabilities breakdown (exact table) appears on the following page and includes Senior Credit Facilities book value of $91,296,000 and BDC Loan book value of $11,638,000.
  • Secured creditors $250K · Note: BNS is Paystone's billing provider/bank; amount reflects restricted cash collateral pledged ($250,000), not a stated outstanding loan balance. (Separately, per the Monitor's Second Report referenced elsewhere in the affidavit, BNS was expected to demand additional cash collateral of at least $5 million from July 2, 2026 onward - a forecast, post-filing requirement, not included here.) · Page: 53 · As of: 2026-06-05 · Debtor: Paystone Inc. · Creditor: The Bank of Nova Scotia · Security: Cash collateral pledged by Paystone to secure any outstanding indebtedness owing to BNS
PDF
Supplementary Affidavit of Imran Malik (BDC Capital Inc.) affirmed June 21, 2026
  • Secured creditors $11.6M · Note: Listed as secured creditor in Shopley LOI Appendix A creditor list, valued as of June 5, 2026 (per LOI consideration terms) · Page: 16 · As of: June 5, 2026 · Debtor: Paystone Inc. · Creditor: BDC Capital Inc.
PDF
Motion Record of BDC Capital Inc. dated June 19, 2026PDF
Notice of Appearance of Walter Andri dated June 19, 2026
  • Counsel Chaitons LLP
PDF
Second Report of the Monitor dated June 19, 2026
  • Cash on hand $693K
  • Operational summary The Company’s operations are focused on providing customers with specialized products and services across its three primary business lines: payment solutions and payment processing; loyalty, gift card and customer engagement programs; and marketing, reputation and customer growth software.
  • Professional fees $2.56M
  • Receipts cumulative $9.11M
  • + 2 more extracted facts
PDF
Amended and Restated Initital Order dated June 15, 2026
  • Commencement date 5 June 2026
  • Court Ontario Superior Court of Justice (Commercial List)
  • Debtor names Paystone Holdings Inc.; Paystone Inc.; Atom Growth Inc.; Atom Growth (USA), Inc.
  • Monitor AlixPartners Restructuring, Inc.
  • + 2 more extracted facts
PDF
Endorsement of Justic Myers dated June 15, 2026
  • Presiding officer Justice F.L. Myers
PDF
Notice of Appearance of Royal Bank of Canada dated June 15, 2026PDF
CCAA Notice to Creditors dated June 12, 2026PDF
Factum of the Applicants dated June 12, 2026PDF
First Report of the Monitor dated June 12, 2026
  • Cash on hand $764K
  • Operational summary The CCAA proceedings are intended to create a stabilized environment to allow the Applicants to continue operating in the ordinary course and complete a going-concern transaction with minimal disruption and loss of customers.
  • Professional fees $605K
  • Receipts cumulative $2.58M
  • + 2 more extracted facts
PDF
Notice of Appearance of National Bank of Canada dated June 10, 2026PDF
Application Record dated June 5, 2026 - Volume 1 of 2
  • Applicant Paystone Holdings Inc., Paystone Inc., Atom Growth Inc., and Atom Growth (USA), Inc.
  • Appointee KSV Restructuring Inc.
  • Appointee role Proposed Monitor
  • Commencement date 5 June 2026
  • + 4 more extracted facts
PDF
Application Record dated June 5, 2026 - Volume 2 of 2
  • Secured creditors Note: Listed under 'Secured Creditors' heading of the Service List as at June 5, 2026 (represented by Goodmans LLP); relates to a Loan Purchase Agreement dated May 8, 2026 and Sandton Forbearance Agreement dated May 8, 2026, neither of which is among the reviewed pages; no balance stated in reviewed pages · Page: 5 · Creditor: Sandton Investments X (Luxembourg) S.À R.L. · Currency: CAD
PDF
BDC Capital Inc. - Notice of Appearance dated June 5, 2026PDF
Endorsement of Justice Myers dated June 5, 2026
  • Presiding officer Justice Myers
PDF
Factum of the Applicants dated June 5, 2026PDF
Initial Order dated June 5, 2026
  • Applicant PAYSTONE HOLDINGS INC., PAYSTONE INC., ATOM GROWTH INC., and ATOM GROWTH (USA), INC.
  • Appointee KSV Restructuring Inc.
  • Appointee role Monitor
  • Charges Administration Charge $745K
  • + 9 more extracted facts
PDF
Pre-Filing Report of the Proposed Monitor dated June 5, 2026
  • Financial position Assets $50.6M · Liabilities $118M · as at 30 Apr 2026 · per unaudited, book value · Company (Paystone Holdings Inc., Paystone Inc., Atom Growth Inc., and Atom Growth (USA), Inc.) - entity/combined basis as presented in single balance sheet — Liabilities exceed assets by approximately $67.3 million (deficit of $67,309 thousand); Applicants are insolvent on a balance sheet basis; figures presented in $000s in original table
  • Secured creditors $11.8M · Note: Applicant in default; BDC delivered demand letter and NOI to Enforce Security (BIA) on Feb 19, 2026; enforcement stayed by standstill notice from Agent under Priority Agreement, current standstill period expires June 20, 2026 · Page: 11 · As of: date of this Report (2026-06-05) · Debtor: Paystone Inc. · Creditor: BDC Capital Inc. · Security: Subordinated secured loan (BDC Loan), original principal $10,000,000 advanced per letter of offer dated January 29, 2024; subordinated to Senior Credit Facilities pursuant to Priority Agreement dated February 29, 2024
PDF
Preliminary List of Known CreditorsPDF

Filing titles, dates, and extracted key facts are public.

CiteProceedings., “Paystone Holdings Inc., Paystone Inc., Atom Growth Inc. and Atom Growth (USA), Inc.” (CCAA), Ontario Superior Court of Justice · Commercial List. Retrieved 20 September 2026, https://proceedings.ca/case/paystone-holdings-inc-paystone-inc-atom-growth-inc-and-atom-growth-usa-inc

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Sources last checked · summary updated 5 August 2026 · Report a correction · Printed from proceedings.ca/case/paystone-holdings-inc-paystone-inc-atom-growth-inc-and-atom-growth-usa-inc

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.