Ontario · Receivership (court-appointed)
Motion Record – Dated October 14, 2026 – Returnable October 22, 2026
Application / notice of application · 14 October 2026
AI summary
A plain-English summary drawn only from this filing: what it is, why it matters, and the parties, amounts and dates it turns on.
What we verified from this filing8 verified
- secured creditorsnote: Floor: stated as 'in excess of $7,199,078' with costs and interest continuing to accrue. Earlier figure: $5,498,370.06 as of April 23, 2025 (excluding legal/professional fees; per diem $2,044.00), per the 2025 Dietrich endorsement. Prior secured lender Service365 had demanded $5,253,941.92 before the assignment. ARK also invested in excess of $1.9 million in common shares (equity, not debt). Realizations will not be sufficient to repay ARK in full. · page: 20 · as of: 2026-09-30 · amount: 7199078 · debtor: Formula Solutions Inc. · creditor: ARK Capital Ltd. · currency: CAD · security: Senior secured lender; Assignment of Indebtedness and Security dated January 18, 2025 from Service365 Inc. (assignor) to ARK; underlying term loan facility agreement dated October 14, 2023 secured by a General Security Agreement as registered; PPSA registration assigned to ARK (PPSA search current to October 12, 2026 confirms ARK's registered security interest against the personal property of the Debtor); Receiver's counsel Security Opinion confirms security valid and enforceable subject to customary assumptions and qualifications
- secured creditorsnote: DISCHARGED: Service365 paid out the RBC Indebtedness in early February 2025 and RBC discharged its security. Not a current secured claim. · page: 24 · debtor: Formula Solutions Inc. · creditor: Royal Bank of Canada (as amalgamated with HSBC Bank Canada) · currency: CAD · security: Formerly first-ranking charge over the Debtor's assets (RBC Indebtedness)
- secured creditorsnote: Resulted in garnishment efforts which were rescinded: MOF issued a Cancellation of Requirement to Pay letter on May 28, 2025. Amount of the underlying MOL claim not stated on these pages. · page: 24 · debtor: Formula Solutions Inc. · creditor: His Majesty in right of Ontario as represented by the Minister of Finance (MOF) · currency: CAD · security: PPSA registration filed in connection with a Ministry of Labour (MOL) claim
- secured creditorsnote: Described as each a secured creditor over certain assets of FSI; the Receiver released their equipment to them. Amounts not stated. · page: 26 · debtor: Formula Solutions Inc. · creditor: Temperature Corporation, Toyota, and Xerox (equipment financiers) · currency: CAD · security: Security interests over certain assets (third-party equipment)
- unsecured creditorsnote: Amount not stated. Air Solutions acknowledged the Receiver's position. · page: 26 · basis: Receiver's counsel's review: arrangement for the compressor constituted a financing agreement with no PPSA registration in Air Solutions' favour; Air Solutions 'appears to have an unsecured claim' · debtor: Formula Solutions Inc. · creditor: Air Solutions Canada Inc. · currency: CAD
- unsecured creditorsnote: Approximate balance (~$5,300), an unallocated carryover from a prior tax year; CRA classified it as unsecured with no deemed trust portion. CRA did not assess any pre-receivership HST arrears. · page: 29 · as of: 2025-05-28 · basis: CRA letter dated May 28, 2025; confirmed by CRA Payroll Examination Statement of Account following September 11, 2025 trust examination · amount: 5300 · debtor: Formula Solutions Inc. · creditor: Canada Revenue Agency (payroll tax account) · currency: CAD
- unsecured creditorsnote: Claim is for unpaid interest only: the $800,000 principal under the March 12, 2024 Haas SRED Loan Agreement was repaid November 8, 2024. No written agreements with HSBC or Service365 delivered and Receiver is aware of no security granted. Related party (former director). Proof of claim filed, not adjudicated. · page: 30 · basis: Unsecured proof of claim filed in the FSI bankruptcy (Haas Claim); Receiver's position is that Haas is an unsecured creditor · amount: 62697.95 · debtor: Formula Solutions Inc. · creditor: David Haas (former director of FSI) · currency: CAD
- unsecured creditorsnote: No aggregate unsecured amount stated on these pages. Receiver reports no known priority payables for taxes or employee claims under BIA ss. 81.3 and 81.4; Service Canada letter dated May 13, 2026 states no super-priority amount remained owing; 102 of 106 eligible employees filed WEPP claims, with termination/severance amounts for four non-filing employees not calculated. · page: 31 · basis: Receiver's statement that realizations will not be sufficient to retire the ARK Indebtedness, so there will be no recovery for unsecured creditors · debtor: Formula Solutions Inc. · creditor: Unsecured creditors (aggregate; no recovery expected) · currency: CAD