Ontario · Proposal
First Report of the Proposal Trustee
Court officer report · 24 February 2022
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What we verified from this filing11 verified
- secured creditorsnote: PRIMARY SECURED CREDITOR — “HSBC is Breakthrough's primary secured creditor.” The document says “approximately $562,000”; the approximation is its own. Recorded separately from the CEBA loan below because the document states them as two facilities. EXCLUDED HERE, and deliberately: a further “approximately $5.5 million” of HSBC production financing is owed by other Breakthrough production subsidiaries which the report says are “not subject to the NOI Proceedings” — another entity group's debt, not this debtor's. · page: 7 · amount: 562000 · debtor: Breakthrough Entertainment Inc. (“Breakthrough”) · creditor: HSBC Bank Canada · currency: CAD · security: “various secured facilities”; PPSA search results appended to the report as Appendix “B”, reflecting updates to HSBC's registrations
- secured creditorsnote: “approximately $280,000”, the document's own approximation. A CEBA loan is a government-backed programme loan; the report places it under Secured Creditors without stating separate security for it. · page: 7 · amount: 280000 · debtor: Breakthrough Entertainment Inc. (“Breakthrough”) · creditor: HSBC Bank Canada — Canada Emergency Business Account loan · currency: CAD · security: stated as owing to HSBC under the CEBA programme; the report lists it within its Secured Creditors section
- unsecured creditorsnote: “approximately $2.1 million”; no individual creditor is named. · page: 7 · as of: 2022-01-07 · basis: as reported by Management to the Proposal Trustee; every figure in this section is stated as an approximation by the document itself · amount: 2100000 · debtor: Breakthrough Entertainment Inc. · creditor: Unsecured trade and producer creditors (aggregate as reported) · currency: CAD
- unsecured creditorsnote: DEEMED TRUST CLASS and NO AMOUNT STATED: “payroll and source deductions are outstanding for one payroll cycle”, with no figure given. The report states in the same breath that “there are no amounts outstanding in respect of HST”, so the HST side is a stated nil rather than an unknown. · page: 7 · basis: as reported by Management to the Proposal Trustee; every figure in this section is stated as an approximation by the document itself · debtor: Breakthrough Entertainment Inc. (“Breakthrough”) · creditor: Payroll source deductions · currency: CAD
- unsecured creditorsnote: CONTINGENT AND DISPUTED, and it runs both ways: Breakthrough commenced an action against Mr. Abraham for breach of fiduciary duty totalling $8.0 million, and he “has counterclaimed naming seven of the filing entities, and the other two indirect shareholders, as defendants for the aggregate amount of $4.9 million”. The $4.9M counterclaim is the claim AGAINST the estate; the $8.0M is the estate's claim against him and is not a liability. · page: 8 · basis: as reported by Management to the Proposal Trustee; every figure in this section is stated as an approximation by the document itself · amount: 4900000 · debtor: Breakthrough Entertainment Inc. (“Breakthrough”) · creditor: Nathaniel Abraham (counterclaim) · currency: CAD
- unsecured creditorsnote: CONTINGENT AND DISPUTED — a pleaded claim for damages of “approximately $425,000”, not an adjudicated debt. · page: 8 · basis: as reported by Management to the Proposal Trustee; every figure in this section is stated as an approximation by the document itself · amount: 425000 · debtor: Breakthrough Films & Television Inc. · creditor: Former employee — wrongful dismissal claim · currency: CAD
- unsecured creditorsnote: CONTINGENT, DISPUTED, USD, AND A FLOOR: “the pleadings claim is for in excess of $75,000 USD”. Recorded at the stated minimum with the operative words quoted, because “at least US$75,000” informs a reader and “not stated” misleads one. Currency is USD, not CAD. · page: 8 · basis: as reported by Management to the Proposal Trustee; every figure in this section is stated as an approximation by the document itself · amount: 75000 · debtor: Breakthrough Entertainment Inc. (“Breakthrough”) · creditor: Copyright infringement claimant (New York action) · currency: USD
- unsecured creditorsnote: CONTINGENT, and stated separately from the rent arrears above: “approximately … $933,000 for … contingent lease damages”. · page: 8 · basis: as reported by Management to the Proposal Trustee; every figure in this section is stated as an approximation by the document itself · amount: 933000 · debtor: Breakthrough Entertainment Inc. (“Breakthrough”) · creditor: Former landlord — contingent lease damages · currency: CAD
- unsecured creditorsnote: “approximately $812,000”; no individual creditor is named. A different filing entity from the $2.1 million above — the report states the three separately and they are kept separate here. · page: 8 · as of: 2022-01-07 · basis: as reported by Management to the Proposal Trustee; every figure in this section is stated as an approximation by the document itself · amount: 812000 · debtor: Breakthrough Films & Television Inc. · creditor: Unsecured trade and producer creditors (aggregate as reported) · currency: CAD
- unsecured creditorsnote: “approximately $22,000”; no individual creditor is named. · page: 8 · as of: 2022-01-07 · basis: as reported by Management to the Proposal Trustee; every figure in this section is stated as an approximation by the document itself · amount: 22000 · debtor: Breakthrough Post Inc. · creditor: Unsecured trade and producer creditors (aggregate as reported) · currency: CAD
- unsecured creditorsnote: CONTINGENT. Breakthrough terminated its premises lease in 2021; the former landlord claims “approximately $155,000” in arrears. · page: 8 · basis: as reported by Management to the Proposal Trustee; every figure in this section is stated as an approximation by the document itself · amount: 155000 · debtor: Breakthrough Entertainment Inc. (“Breakthrough”) · creditor: Former landlord — arrears of rent · currency: CAD