British Columbia · Receivership (court-appointed)

Second Report of the Trustee The purpose of this second report (the "Second ReporY') is to advise the Supreme Court of British Columbia with respect to, inter alia, the following: a. condensed background information of Western Concord; b. the Marketing Process (defined below) undertaken prior to the NOI; c. a summary of prior efforts to market the Companies and analysis of its business; d. the Proposal Trustee's estimate of the value of the Companies; e. the indebtedness of the Companies to their Secured Creditors; f. the Security Review (defined below) performed by Cassels Brock &Blackwell LLP ("Cassels"), independent legal counsel for the Trustee; g. the asset purchase agreement with a United States-based strategic investor (the "Buyer") to acquire substantially all of the assets of the Companies (the "APA"); h. the Proposal Trustee's commentary on the APA; i. the Companies' intended application for a claims process (the "Proposed Claims Process"); j. a budget to actual cash flow analysis since the First Report (being the period from December 11, 2017 to February 9, 2018); k. the Companies' projected cash flows for the period from February 9, 2018 to April 7, 2018 (the "Second Report Cash Flow Forecast"); I. the Companies' request for an extension of the deadline to file proposals by 45 days to April 7, 2018; and m. the Proposal Trustee's Recommendations

Court officer report · 15 February 2018