True North Hardwood Plywood Inc. (Proposal)

True North Hardwood Plywood Inc. filed a Division I proposal under section 62 of the Bankruptcy and Insolvency Act on May 17, 2011 in Quebec, under court file 500-11-040786-119, with RSM Richter Inc. as Trustee. The company's unaudited Statement of Affairs as at that date shows assets of $3,210,000 — cash of $95K, accounts receivable of $278K and fixed assets at a net book value of $2,837K, comprising vehicles of $35K, machinery and equipment of $1,590K and land and building of $1,212K — against unsecured claims of approximately $2,983K, with no secured creditors and preferred creditors shown as nil. The unsecured total consists of $1,573K in unpaid employee termination pay, amounts qualifying under BIA s.60(1.3)(a) being payable in full ahead of unsecured claims, and $1,410K owed to various trade suppliers. The Trustee's liquidation analysis projects a 6% to 9% distribution to unsecured creditors under the proposal against 0% in a bankruptcy, and cautions that potential environmental problems could nullify any value realised on asset sales in a bankruptcy. Under CCT's letter of intent, the landlord of the veneer warehouse, related to the City of Cochran, must waive its right to file a claim, representing potential savings of approximately $145,000. The proceeding is active.