Prosysco Ltd. and 1110615 Ontario Ltd.

Prosysco Ltd. and 1110615 Ontario Ltd. filed notices of intention to make a proposal after Royal Bank of Canada declared Prosysco in default on March 22, 2023 and issued a notice of intention to enforce security under section 244 of the BIA. RBC's claim, secured under a June 16, 2016 general security agreement, totals approximately $2.76 million CAD plus US$250,000, with 111Co. providing a limited guarantee capped at $820,000 under its own security agreement of the same date. The Canada Revenue Agency asserts a deemed trust claim of approximately $1.63 million for unremitted source deductions. Prosysco has listed approximately $1.8 million in arm's-length unsecured claims and an estimated $2.5 million owed to shareholders and other non-arm's-length creditors; 111Co.'s sole listed unsecured creditor is Prosysco, owed $128,000.