Sound City Music Entertainment Inc. (o/a RPM Distribution)
Follow- Proceeding
- BankruptcyBIA
- File
- 31-2467216
Sound City Music Entertainment Inc., operating as RPM Distribution, is in bankruptcy under the BIA before the Ontario Superior Court of Justice (in Bankruptcy and Insolvency) (Commercial List), court file 31-2467216, with A. Farber & Partners Inc. as Licensed Insolvency Trustee. The proceeding began with an application filed May 17, 2019, and a sale was approved by approval and vesting order on May 22, 2019. The sworn Statement of Affairs declared inventory at a book value of $8,618,159, against the Trustee's own inventory count and price-list valuation of $6,733,000 at original cost. The three Labels filed claims of $5,360,048 (Universal Music Canada Inc.), $2,042,798 (Sony Music Entertainment Canada Inc.) and $800,373 (Warner Music Canada Co.), reduced under a Litigation Settlement Agreement to $3,641,426, $1,317,230 and $405,209 respectively. Other unsecured claims aggregate $777,126. The matter remains active.
The Court granted an approval and vesting order sanctioning a sale of the estate's assets, five days after the application was filed.
Source: Order of Justice Hainey
Interim order granted on Wednesday, the 22nd day of May, 2019, the date the proceeding commenced; the record does not set out its terms.
Source: Order of Justice Hainey
Application filed, opening the bankruptcy proceeding; the Trustee's First Report of the same date scheduled the Labels' filed claims and the reductions to be effected by the Litigation Settlement Agreement.
Debtor
Sound City Music Entertainment Inc. (o/a RPM Distribution)
Trustee in bankruptcy
GlassRatner
| # | Priority class | Creditor | Amount | Source |
|---|---|---|---|---|
| 4 | Secured | Ford Credit Canada Limited · in 60 casesMotor Vehicles - Automobile - 2018 Ford F-150; estimated value of security $55,000.00 — List B (Secured Creditors); fully secured - balance of claim (unsecured shortfall) $0.00; Statement of Affairs summary shows balance of secured claims as per List B of $0.00 — debtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $55K | Creditors Package |
| 6 | Landlord preferred | Bentall Kennedy (Canada) LP · in 7 casespreferred creditor (landlord), ranks ahead of ordinary unsecured; nominal $1.00 as stated on List C; List C total $1.00 — debtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $1 | Creditors Package |
| 8 | Unsecured | UNIVERSAL MUSIC CANADA INC.debtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $5.36M | Creditors Package |
| 8 | Unsecured | SONY MUSIC CANADAdebtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $2.04M | Creditors Package |
| 8 | Unsecured | WARNER MUSIC CANADAdebtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $800K | Creditors Package |
| 8 | Unsecured | OUTSIDE MUSICdebtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $127K | Creditors Package |
| 8 | Unsecured | AM Denmarkconverted to CAD — debtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $120K | Creditors Package |
| 8 | Unsecured | FAB DISTRIBUTION · in 2 casesdebtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $98.2K | Creditors Package |
| 8 | Unsecured | DISTRIBUTION SELECTdebtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $62.1K | Creditors Package |
| 8 | Unsecured | MUSIC DIRECT (MOBILE FIDELITY)converted to CAD — debtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $54K | Creditors Package |
| 8 | Unsecured | ECSolutions Inc.debtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $50.3K | Creditors Package |
| 8 | Unsecured | FAT CAT INTERNATIONAL LTD.converted to CAD — debtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $41.6K | Creditors Package |
| 8 | Unsecured | Olympic Plastic Bags Ltddebtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $25.6K | Creditors Package |
| 8 | Unsecured | Mantoria Inc. · in 2 casesdebtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $21.8K | Creditors Package |
| 8 | Unsecured | MVD Entertainment Group · in 2 casesdebtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $16.5K | Creditors Package |
| 8 | Unsecured | Robert Bolducdebtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $7.21K | Creditors Package |
| 8 | Unsecured | FCL Fisker Customs & Logisticsdebtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $6.79K | Creditors Package |
| 8 | Unsecured | NAXOS OF CANADA LTD.debtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $4.8K | Creditors Package |
| 8 | Unsecured | PURE PLEASURE RECORDS LTD.converted to CAD — debtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $3.1K | Creditors Package |
| 8 | Unsecured | COMPARATIO USA, LLCconverted to CAD — debtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $2.7K | Creditors Package |
| 8 | Unsecured | UNIDISCdebtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $1.76K | Creditors Package |
| 8 | Unsecured | Vitran Express · in 2 casesdebtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $1.48K | Creditors Package |
| 8 | Unsecured | C & S Cleaning Solutionsdebtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $1.22K | Creditors Package |
| 8 | Unsecured | Mammone Disposal System Ltd. · in 2 casesdebtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $1.2K | Creditors Package |
| 8 | Unsecured | Rocketline · in 3 casesdebtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $1.2K | Creditors Package |
| 8 | Unsecured | Ludger Daoustdebtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $766 | Creditors Package |
| 8 | Unsecured | Cam Cartage Inc. · in 2 casesdebtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $520 | Creditors Package |
| 8 | Unsecured | Liftow Limited · in 30 casesdebtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $389 | Creditors Package |
| 8 | Unsecured | Uline Canada Corporation · in 71 casesdebtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $102 | Creditors Package |
| 8 | Unsecured | Packaging World Inc.debtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $62 | Creditors Package |
| 8 | Unsecured | Bell Canada F-88 - Business · in 64 casesnominal $1.00 as stated on List A — debtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $1 | Creditors Package |
| 8 | Unsecured | TD Canada Trust · in 55 caseslisted as unsecured; nominal $1.00 as stated on List A — debtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $1 | Creditors Package |
| 8 | Unsecured | Federal Express Canada Ltd. - Revenue Recovery Department · in 16 casesnominal $1.00 as stated on List A — debtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $1 | Creditors Package |
| 8 | Unsecured | EPICOR SOFTWARE CANADA LTD. · in 4 casesnominal $1.00 as stated on List A — debtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $1 | Creditors Package |
| 8 | Unsecured | Enbridge Gas Distribution - Ontario · in 54 casesnominal $1.00 as stated on List A — debtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $1 | Creditors Package |
| 8 | Unsecured | DISTRISALES BVnominal $1.00 as stated on List A — debtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $1 | Creditors Package |
| 8 | Unsecured | Delmark Recordsnominal $1.00 as stated on List A — debtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $1 | Creditors Package |
| 8 | Unsecured | Ministry of Finance - ON PST, EHT & Other Taxes · in 64 casesOntario Ministry of Finance tax claim (PST, EHT & other taxes; regulatory/tax class); nominal $1.00 as stated on List A — debtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $1 | Creditors Package |
| 8 | Unsecured | CRA - Tax - Ontario · in 252 casesCanada Revenue Agency tax claim (deemed trust class); nominal $1.00 as stated on List A — debtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $1 | Creditors Package |
| 8 | Unsecured | PowerStream Inc. · in 9 casesnominal $1.00 as stated on List A — debtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $1 | Creditors Package |
| 8 | Unsecured | Simply Media TVnominal $1.00 as stated on List A — debtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $1 | Creditors Package |
| 8 | Unsecured | SPEAKER'S CORNERnominal $1.00 as stated on List A — debtor: Sound City Music Entertainment Inc. (o/a RPM Distribution) · as of 24 Jan 2019 | $1 | Creditors Package |
Sale approvedOrder of Justice Hainey · 22 May 2019
| Purchaser | Price | Status | Source |
|---|---|---|---|
| Universal Music Canada Inc., Sony Music Entertainment Canada Inc., Warner Music Canada Co.all of the Company's right, title and interest in and to the Labels' Supplied Inventory · asset sale | Debt assumedconsideration is the Claim Reduction Value which stands in place of the Labels' Supplied Inventory for priority purposes | Approved22 May 2019 | Order of Justice Hainey |
Sony, Universal, Warner (Labels): shortfall.Motion Record · 22 May 2019
| Class | Creditor | Claims | Recovery | Basis | Source |
|---|---|---|---|---|---|
| Unsecured | Sony, Universal, Warner (Labels) | $8.2Masserted | shortfall | per the trustee | Motion Record · 22 May 2019 |
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.
As at 24 Jan 2019 · per Statement of Affairs (Form 78, Business Bankruptcy), liabilities and assets as stated and estimated by the officer · Single entity - Sound City Music Entertainment Inc. (o/a RPM Distribution), Vaughan, Ontario — Deficiency $4,455,197.60; Surplus NIL. Liabilities detail: unsecured (List A) $8,853,795.81 + balance of secured claims (List B) $0.00 = total unsecured $8,853,795.81; secured (List B) $55,000.00; preferred (List C) $1.00; contingent/trust (List D) $0.00. Sworn 24 January 2019; assignment filed 25 January 2019.
| Date | Document | File |
|---|---|---|
| Schedule B – Terms & Conditions of Sale | ||
Endorsement of Justice Hainey
| ||
Motion Record, returnable May 22, 2019
| ||
Order of Justice Hainey
| ||
| Amended Certificate of Appointment | ||
Creditors Package
| ||
Offer Form
| ||
| Schedule A – List of Inventory | ||
Filing titles, dates, and extracted key facts are public.
CiteProceedings., “Sound City Music Entertainment Inc. (o/a RPM Distribution)” (Bankruptcy), Ontario Superior Court of Justice. Retrieved 20 September 2026, https://proceedings.ca/case/sound-city-music-entertainment-inc-o-a-rpm-distribution