Quebec · Proposal
Report of the Trustee on the financial situation do the Debtor and on the Proposal
Court officer report · 12 January 2018
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 filing7 verified
- commencement date5 July 2017
- financial positionnote: Estimated Net Realizable Value of assets is 'Undetermined' for most asset categories except Cash ($46K); Liabilities breakdown: Secured (Hegemon Capital, Inc.) $438K, Director & officer loans $146K, Unsecured $3,397K, Total $3,981K. Separate audited/internal balance sheets also presented as at July 31, 2017 (Assets $1,675K / Liabilities $5,046K), October 31, 2016 (Assets $3,348K / Liabilities $5,991K), and October 31, 2015 (Assets $3,633K / Liabilities $3,935K) - see page 3. · page: 5 · as at: 2018-01-03 · basis: Unaudited, Value per Statement of Affairs (SOA) · scope: Quest Rare Minerals Ltd. (entity level) · currency: CAD · total assets: 3208000 · total liabilities: 3981000
- secured creditorsnote: Value per SOA as at January 3, 2018 was $438K; exact estimated amount owing in capital and interest at loan maturity January 18, 2018 is $462,751. Legal opinion from Borden Ladner Gervais confirms validity of security but did not cover mining properties. · page: 8 · as of: 2018-01-18 · amount: 462751 · debtor: Quest Rare Minerals Ltd. · creditor: Hegemon Capital, Inc. · currency: CAD · security: Conventional hypothec over all of the Company's assets (excluding mining properties per legal opinion)
- secured creditorsnote: Related party (directors and officers loans); amount per Company's books and records is $152K (also stated as $151,862 per Note 3 on page 13); security only covers GST/QST receivables for which no realization is estimated in a bankruptcy scenario, so treated as unsecured in bankruptcy scenario per Trustee. · page: 8 · as of: 2017-12-31 · amount: 152000 · debtor: Quest Rare Minerals Ltd. · creditor: Eight (8) directors and officers · currency: CAD · security: Conventional hypothecs over sales tax credits receivables
- unsecured creditorsnote: Document names no individual creditors. Separately, claims of unsecured creditors as at December 31, 2017 are estimated to total approximately $3.4M (page 8, para 39). Estimated unsecured creditors used in proposal/bankruptcy dividend scenarios: $3,393,505 (Proposal scenarios) and $3,545,367 (Bankruptcy scenario, which includes reclassified director/officer secured loans as unsecured). · page: 8 · as of: 2018-01-03 · basis: Value per Statement of Affairs as at January 3, 2018 · amount: 3397000 · debtor: Quest Rare Minerals Ltd. · creditor: Unsecured creditors (aggregate as reported) · currency: CAD
- unsecured creditorsnote: Preferred/super-priority claim under BIA s.81(3), ranking ahead of secured creditors, capped at $2,000; also referenced as 'Employee claims S.60(1.3)' in Proposal summary. · page: 8 · as of: not stated · basis: Statement per Trustee's report re: BIA s.81(3) super priority · amount: 2000 · debtor: Quest Rare Minerals Ltd. · creditor: One (1) employee (unpaid wages and vacation pay) · currency: CAD
- recovery outcomeentries: basis: unstated · quote: | Estimated distribution percentage | 16.06% | 1.47% | 16.06% | · pct of: unstated · outcome: distribution · pct low: 16.06 · pct high: 16.06 · class key: unsecured · stated by: proposal_trustee · amount low: 545000 · amount high: 545000 · class label: Unsecured creditors (proposal base payment) · claims amount: 3393505 · interim final: unstated · claims qualifier: estimated; basis: liquidation_alternative · quote: | Estimated distribution percentage | 16.06% | 1.47% | 16.06% | · pct of: unstated · outcome: distribution · pct low: 16.06 · pct high: 16.06 · class key: unsecured · stated by: proposal_trustee · amount low: 569262 · amount high: 569262 · class label: Unsecured creditors (bankruptcy scenario) · claims amount: 3545367 · interim final: unstated · conditional on: Trustee collects 55% of the Estimated 2011-2014 QMD/QRTC Receivable and the 2016 QMD/QRTC/SRED · claims qualifier: estimated; basis: plan · quote: 52.2. In a Proposal scenario, each amount of $100K of Tax Credits generated above the $1.9M threshold will generate an additional distribution of 1.47% to the unsecured creditors. · pct of: unstated · outcome: distribution · pct low: 1.47 · pct high: 1.47 · class key: unsecured · stated by: proposal_trustee · amount low: 50000 · amount high: 50000 · class label: Unsecured creditors (additional Tax Credit dividend) · claims amount: 3393505 · interim final: unstated · conditional on: for each $100K of Tax Credits collected above the $1.9M threshold · claims qualifier: estimated · stated on: 2018-01-12 · table missing: