Sequent AI Ltd., Sequent AI Exchangeco Ltd. and Fulcrum Stoneworks Exchangeco Ltd.
- Proceeding
- Receivership (court-appointed)Section 243(1) of the Bankruptcy and Insolvency Act, RSC 1985, c B-3, and section 101 of the Courts of Justice Act, RSO 1990, c C.43
- Court
- Ontario Superior Court of Justice · Commercial List
- File
- CL-26-00000142-0000
Sequent AI Ltd., Sequent AI Exchangeco Ltd. and Fulcrum Stoneworks Exchangeco Ltd. were placed in court-appointed receivership on April 17, 2026 by the Ontario Superior Court of Justice, under section 243(1) of the Bankruptcy and Insolvency Act and section 101 of the Courts of Justice Act. The Receiver developed a sale and investment solicitation process in consultation with Cortland, which the Court approved on May 5, 2026; the record shows bid deadlines of 5:00 p.m. on June 12, 2026 and 5:00 p.m. on July 21, 2026. In its Second Report, dated July 31, 2026, the Receiver reported that two letters of intent were received by the Bid Deadline but neither was a Qualified Bid, that Cortland is proceeding with a Cortland Subsequent Credit Bid, and that a Claims Procedure Order is recommended. The receivership is active.
The claims bar date has passed — claims were due by
Per the Claims Procedure Order dated August 7, 2026 dated 7 August 2026.
Approved the sale of the Purchased Shares to Workstone Holdings Inc. under a September 16, 2026 agreement, vesting on delivery of a Receiver's Certificate confirming payment and closing conditions.
The officer filed report no. Third Report. The Debtors' principal assets are equity interests in the Operating Entities; the Borrower ceased operations in March 2026 and its four employees have been terminated, while the Operating Entities continue to operate in the normal course outside the receivership. The Receiver recommends approval of a credit-bid share sale of Stoneworks Technologies to Cortland's affiliate and continues to evaluate options for the PJS shares.
Source: Third Report of the Receiver dated September 17, 2026
Claims Procedure Order issued to quantify Priority Claims and address claims against Stoneworks Exchangeco, setting a claims bar date of August 31, 2026.
Second Report reported the SISP outcome — two LOIs, neither a Qualified Bid — Cortland's Subsequent Credit Bid, and recommended a Claims Procedure Order quantifying Priority Claims and clarifying claims against Stoneworks Exchangeco.
SISP Approval Order issued Tuesday, May 5, 2026 in the Ontario Superior Court of Justice (Commercial List).
Further record of the same May 5 approval; the process later marketed the Property to the Bid Deadline.
The Court's order of this date is the instrument the Receiver's reporting identifies as the SISP Approval Order.
Source: SISP Notice dated June 16, 2026
Duplicate record of the SISP approval obtained by the Receiver on this date; no separate relief recorded.
Source: SISP Revised Dates Notice
Authorized the Receiver to run the sale and investment solicitation process for the Property, developed in consultation with Cortland.
First Report recorded the Receiver's work since appointment: dealings with Cortland and counsel, information-gathering from Management and the Operating Entities, development of the SISP, and statutory notices under BIA ss. 245(1) and 246(1).
Justice Black appointed KSV Restructuring Inc. receiver and manager of the three debtors, Cortland's indebtedness then standing at approximately $32 million exclusive of accruing interest, fees and costs.
Sequent AI Ltd., Sequent AI Exchangeco Ltd. and Fulcrum Stoneworks Exchangeco Ltd. — Receivership filed, Ontario.
Cortland Credit Lending Corporation applied to appoint KSV Restructuring Inc. as receiver, with its debt stated at approximately $39.8 million as at this date.
Source: Application Record of Cortland Credit Lending Corporation dated April 6, 2026
Undated filings1 — no date appears on the document · show
Case update
Sequent AI: the credit bid that assumes the debt
No qualified bid came out of a process that reached 103 potential purchasers, so on September 22 the receiver asks the court to approve the sale of Ottawa's Stoneworks Technologies to a company controlled by Cortland Credit Lending — a purchaser that assumes roughly $34.7 million of secured debt instead of extinguishing it, and pays the receivership's costs in cash.
Debtor
Sequent AI Ltd., Sequent AI Exchangeco Ltd. and Fulcrum Stoneworks Exchangeco Ltd.
Applicant
Cortland Credit Lending Corporation
Receiver
KSV
Bench
| Judge | Court | On this docket | Cases on record |
|---|---|---|---|
| Justice Black | Ontario Superior Court of Justice | 5 orders, Apr 2026 – Sep 2026 | 198 cases on record |
Counsel of record
| Party | Counsel | First seen | Source |
|---|---|---|---|
| ReceiverKSV | McCarthy Tétrault LLP | 28 Apr 2026 | Factum · 28 Apr 2026 |
| ApplicantCortland Credit Lending Corporation | Dentons Canada LLP | 14 Apr 2026 | Factum · 14 Apr 2026 |
| CreditorAlixPartners Restructuring, Inc | McCarthy Tétrault LLP | 4 Aug 2026 | Factum · 4 Aug 2026 |
| CreditorCanada Revenue Agency | Blake, Cassels & Graydon LLP | 31 Jul 2026 | Service list · 31 Jul 2026 |
| CreditorIngram Micro Inc | Bennet Jones LLP · Blake, Cassels & Graydon LLP | 31 Jul 2026 | Service list · 31 Jul 2026 |
| CreditorTD Synnex Canada ULC | Tucker Ellis LLP | 31 Jul 2026 | Service list · 31 Jul 2026 |
| Priority class | Creditor | Amount | Source |
|---|---|---|---|
| Secured | Cortland Credit Lending Corporation (as agent for the Lenders) · in 5 casesGeneral Security Agreement dated March 3, 2022 ("Borrower GSA") and Transfer and Assignment of Insurance Agreement dated March 3, 2022; perfected by financing statement in the Ontario PPR; ON PPR search dated March 20, 2026 confirms Cortland, as agent, is first-ranking secured creditor against Borrower's personal property. Credit Facility total commitment stated as CA$41,000,000 (facility limit, not a balance). — Outstanding balance under Credit Facility, inclusive of principal and accrued interest; one paragraph states interest accrued 'as at March 12, 2026' while the balance itself is stated · as of 31 Mar 2026 | $39.8M | Application Record of Cortland Credit Lending Corporation dated April 6, 2026 |
| Secured | |||
| Secured | |||
| Secured | |||
| Secured | |||
| Secured |
5 more claims in 1 class The stack holds Secured claims.
Every creditor and every amount.
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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.
2 transactions · 1 proposed · 1 closed — Transaction approved and Purchase Agreement execution authorizedApproval and Vesting Order dated September 22, 2026 · 22 Sep 2026
| Purchaser | Price | Status | Source |
|---|---|---|---|
| Cortland Purchaser under Cortland Subsequent Credit Bid, unnamed entitythe shares of Stoneworks Technologies · share sale | Subscribers | Proposed | Third Report of the Receiver dated September… |
| Workstone Holdings Inc.all of the rights, title, benefits and interests of the Debtors in and to the Purchased Shares (as defined in the Purchase Agreement) (the "Purchased Assets") · share sale · agreement 16 Sep 2026 | not stated | Closed2 Oct 2026outside 7 Jul 2026 | Receiver's Certificate dated October 2, 2026 |
Equity: no distribution.EstimatedThird Report of the Receiver · 17 Sep 2026
| Class | Creditor | Claims | Recovery | Basis | Source |
|---|---|---|---|---|---|
| Equity | unsecured creditors or holders of equity claims | — | no distribution | Estimatedper the receiver | Third Report of the Receiver · 17 Sep 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.
Professional fees
$170K
As at 31 Aug 2026Third Report of the Receiver dated September 17, 2026
| Date | Document | File |
|---|---|---|
Receiver's Certificate dated October 2, 2026
| PDF · Subscribers | |
Ancillary Relief Order signed dated September 22, 2026
| PDF · Subscribers | |
Approval and Vesting Order dated September 22, 2026
| PDF · Subscribers | |
Factum of the Receiver dated September 18, 2026
| PDF · Subscribers | |
| Motion Record of the Receiver dated September 17, 2026 | PDF · Subscribers | |
Third Report of the Receiver dated September 17, 2026
| PDF · Subscribers | |
Service List as at September 14, 2026
| PDF · Subscribers | |
Claims Procedure Order dated August 7, 2026
| PDF · Subscribers | |
Schedule A - Notice to Creditors
| PDF · Subscribers | |
| Schedule B - Instruction Letter | PDF · Subscribers | |
| Schedule C - Proof of Claim | PDF · Subscribers | |
Factum of the Receiver dated August 4, 2026
| PDF · Subscribers | |
| Motion Record of the Receiver dated July 31, 2026 | PDF · Subscribers | |
Second Report of the Receiver dated July 31, 2026
| PDF · Subscribers | |
Service List as at July 31, 2026
| PDF · Subscribers | |
SISP Update Notice dated July 30, 2026
| PDF · Subscribers | |
SISP Revised Dates Notice
| PDF · Subscribers | |
SISP Notice dated June 16, 2026
| PDF · Subscribers | |
SISP Extension Letter - May 14, 2026
| PDF · Subscribers | |
Endorsement of Justice Black dated May 5, 2026
| PDF · Subscribers | |
SISP Approval Order dated May 5, 2026
| PDF · Subscribers | |
Factum of the Receiver dated April 28, 2026
| PDF · Subscribers | |
First Report of the Receiver dated April 28, 2026
| PDF · Subscribers | |
| Motion Record of the Receiver dated April 28, 2026 | PDF · Subscribers | |
Endorsement of Justice Black dated April 17, 2026
| PDF · Subscribers | |
Order Appointing Receiver dated April 17, 2026
| PDF · Subscribers | |
Factum of Cortland Credit Lending Corporation dated April 14, 2026
| PDF · Subscribers | |
Application Record of Cortland Credit Lending Corporation dated April 6, 2026
| PDF · Subscribers | |
| Schedule E - Notice of Dispute | 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., “Sequent AI Ltd., Sequent AI Exchangeco Ltd. and Fulcrum Stoneworks Exchangeco Ltd.” (Receivership (court-appointed)), Ontario Superior Court of Justice · Commercial List. Retrieved 5 November 2026, https://proceedings.ca/case/sequent-ai-ltd-sequent-ai-exchangeco-ltd-and-fulcrum-stoneworks-exchangeco-ltd