Alberta · Proposal
Report of Trustee on Proposal - Filed Nov 7, 2025
Court officer report · 7 November 2025
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 filing11 verified
- courtCOURT OF KING’S BENCH OF ALBERTA
- court file no24-3278321
- appointeeBDO Canada Limited/BDO Canada Limitée
- appointee roletrustee
- commencement date23 October 2025
- statutory basisSection 59(1) and paragraph 58(d) of the Bankruptcy and Insolvency Act
- secured creditorsnote: Sole secured creditor; non-arm's-length/related party (True Works Inc. owns 100% of the Debtor's shares). Per the Debtor's sworn Statement of Affairs (Oct 22, 2025), the $842,841.28 total claim is bifurcated by security value: $685,000.00 recorded as secured (value of assets securing the claim) and $157,841.28 as unsecured deficiency. Trustee's Form 40 report and Report to Creditors both show the full $842,841.28 as the secured claim balance; Report states aggregate balance owing to True as 'approximately $842,000', arising from a revolving intercompany funding arrangement since Oct 2020 (peak ~$2.83M in June 2023, ~$3.9M advanced/~$3.2M repaid in total). Trustee was, as of report date, still obtaining an independent legal opinion on the validity of the security; True Works Inc. will not vote on the Proposal as a secured creditor and its cooperation/claim reduction is proposed under Proposal Article XII. · page: 21 · as of: 2025-10-22 · amount: 842841.28 · debtor: 1255261 Alberta Ltd. · creditor: True Works Inc. · currency: CAD · security: General Security Agreement (blanket, all-property) dated March 14, 2023, registered in the Personal Property Registry March 17, 2023
- financial positionnote: Assets and liabilities carry different as-at dates: assets as at 2025-07-28 (Financial Statements), liabilities as at 2025-10-22 (sworn SOA). Liabilities of $2,017,522 comprise secured creditors (1) $842,841 [True Works Inc., related party], preferred creditors nil, unsecured creditors (55) $1,174,681, and CRA deemed trust/deferred creditors nil. · page: 33 · as at: 2025-07-28 · basis: Total assets are book value per the Debtor's internal (unaudited) Financial Statements for the period ended 2025-07-28, which the Trustee states have not been audited, reviewed, or otherwise verified for accuracy or GAAP compliance. Total liabilities are per the sworn Statement of Affairs (Form 78) dated 2025-10-22. · scope: entity-level: 1255261 Alberta Ltd. (the Debtor) only; not consolidated · currency: CAD · total assets: 214002 · total liabilities: 2017522
- purchaserMcDougall Auctioneers Ltd.
- sale advisorMcDougall Auctioneers Ltd.
- sale outcometext: auction of the property subject to court approval, application to be heard November 17/19, 2025 · scope: liquidation · status: pending_approval