British Columbia · Receivership (court-appointed)
Receiver's First Report
Court officer report · 2 November 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 filing21 verified
- financial positionnote: Component figures only (not summed): capital assets net book value approx. $9.48M (May 31, 2026); inventory book value approx. $1.5M (May 31, 2026), with approx. 878,000 lbs frozen blueberries at book cost approx. $457,860 remaining; accounts receivable approx. $6.8M (Sept 28, 2026), incl. Meduri ~US$2.04M (disputed; Meduri reports ~US$1.99M and asserts deferral and credits) and Valley Select ~$4.0M (US$2.86M, disputed by approx. US$751,500). Receiver holds $944,642 in trust (Oct 29, 2026). Related-party balances (due from Fraser Valley and others; due to shareholders and Vision Agro) unverified. · page: 9 · basis: No balance sheet totals stated in the report. Debtor's reviewed financial statements for year ended May 31, 2026 referenced; Receiver has not verified or audited any information. · scope: Starline Foods Inc. (entity) · currency: CAD
- secured creditorsnote: Amount is approximate ('approximately $6.6 million'); interest and costs continue to accrue. Senior secured lender. Receiver's counsel has NOT yet reviewed validity/enforceability of the BMO Security; opinion pending. Subject to prior-ranking Receiver's Charge, Receiver's Borrowings Charge, and deemed trust/priority claims. · page: 10 · as of: 2026-10-06 · amount: 6600000 · debtor: Starline Foods Inc. · creditor: Bank of Montreal (BMO) · currency: CAD · security: Registered mortgages over the Real Property and a general security agreement over present and after-acquired personal property (the BMO Security). Facilities: operating loan, three demand loans (approx. $6.5M), MasterCard facility, and three letters of credit in favour of the City of Abbotsford (drawn LCs included in total). Personal guarantees from Mrs. Grewal (limited to $6.0M), Mr. Gill ($3.75M) and Mr. S. Gill ($2.5M).
- unsecured creditorsnote: Potential deemed trust/statutory priority claim; approximate. No amounts shown owing for payroll source deductions or corporate income tax. WorkSafeBC claims possible but none quantified. · page: 10 · as of: 2026-10-03 · basis: Debtor's CRA business account · amount: 3570 · debtor: Starline Foods Inc. · creditor: Canada Revenue Agency (GST) · currency: CAD
- unsecured creditorsnote: Approximate. Wage claims may be secured/preferred under BIA s.81.4 (preferred/priority class); WEPPA information provided to employees. · page: 10 · as of: 2026-09-21 · basis: Receiver's estimate from payroll records (~7 hourly employees) · amount: 25000 · debtor: Starline Foods Inc. · creditor: Former employees (unpaid wages) · currency: CAD
- secured creditorsnote: Amount owing, if any, and specific equipment unconfirmed; Receiver seeking confirmation. PPSA equipment financiers (PMSI class). · page: 11 · debtor: Starline Foods Inc. · creditor: De Lage Landen Financial Services Canada Inc. (DLL) · currency: CAD · security: PPR registration; understood to be PMSIs in certain equipment of the Debtor
- secured creditorsnote: As at PPR search date. Appears to relate to an Employment Standards Tribunal determination/order under s.9 of the Employment Standards Act. Priority relative to BMO under review (possible statutory priority irrespective of registration order). Regulatory/statutory claim. · page: 11 · as of: 2026-09-18 · amount: 114096 · debtor: Starline Foods Inc. · creditor: Director of Employment Standards (BC) · currency: CAD · security: PPR registration, made after registration of BMO's general security agreement
- secured creditorsnote: Amount owing, if any, and specific equipment unconfirmed; Receiver seeking confirmation. PPSA equipment financiers (PMSI class). BDC term sheet for $6.4M refinancing expired Oct 1, 2026 and was never a loan offer. · page: 11 · debtor: Starline Foods Inc. · creditor: Business Development Bank of Canada (BDC) · currency: CAD · security: PPR registration; understood to be PMSIs in certain equipment of the Debtor
- secured creditorsnote: DISCHARGED; no current security. Named as respondent only because of former PMSI. · page: 11 · debtor: Starline Foods Inc. · creditor: Brandt Tractor Ltd. · currency: CAD · security: Previously held a PMSI
- unsecured creditorsnote: Approximate; included without admission. · page: 11 · basis: Debtor's books and records; not verified · amount: 909000 · debtor: Starline Foods Inc. · creditor: Peerless Logistics Inc. · currency: CAD
- unsecured creditorsnote: Approximate total ('approximately $7.4 million'). Named components listed separately below. No claims process approved; creditors not yet required to file proofs of claim. · page: 11 · basis: Debtor's books and records; not verified by the Receiver; included without admission as to validity, quantum or priority · amount: 7400000 · debtor: Starline Foods Inc. · creditor: Unsecured creditors (aggregate per books and records) · currency: CAD
- unsecured creditorsnote: Approximate. Related party (Mr. Kondolay is a director); Receiver reviewing dealings between Vision Agro and the Debtor/its customers. Included without admission. · page: 11 · basis: Debtor's books and records; not verified · amount: 5000000 · debtor: Starline Foods Inc. · creditor: Vision Agro Products Ltd. · currency: CAD
- unsecured creditorsnote: Approximate; included without admission. Note Valley Select is also a debtor to Starline (~$4.0M receivable per its Sept 18, 2026 letter, now disputed). · page: 11 · basis: Debtor's books and records; not verified · amount: 310000 · debtor: Starline Foods Inc. · creditor: Valley Select Foods Inc. · currency: CAD
- unsecured creditorsnote: Approximate; included without admission. · page: 11 · basis: Debtor's books and records; not verified · amount: 292000 · debtor: Starline Foods Inc. · creditor: Transera Logistics Inc. · currency: CAD
- cash on handnote: Funds held in the Receiver's estate trust account. · as at: 2026-10-29 · amount: 944642 · currency: CAD
- disbursementsnote: Primarily insurance premiums of $18,937, appraisal fees of $10,000, and utilities of $5,319. · since: Date of Receivership (September 21, 2026) to October 29, 2026 · amount: 35434 · currency: CAD
- financial positionnote: No total assets or total liabilities figure is stated; components only, reported verbatim. Assets: accounts receivable approximately $6.8 million as at September 28, 2026 (trade receivables, recoverable GST and a government grant receivable); inventory reported book value approximately $1.5 million as at May 31, 2026 (approximately 878,000 lbs of frozen blueberries remaining at the Facility with a book value at cost of approximately $457,860); capital assets reported net book value approximately $9.48 million as at May 31, 2026. Liabilities: BMO indebtedness approximately $6.6 million as at October 6, 2026; unsecured creditor claims approximately $7.4 million per the Debtor's books and records (including approximately $5.0 million to Vision Agro, $909,000 to Peerless Logistics Inc., $310,000 to Valley Select, $292,000 to Transera Logistics Inc.); Director of Employment Standards PPR registration $114,096; unpaid employee wages estimated approximately $25,000; CRA GST approximately $3,570. Component figures carry different as-at dates. Receiver is disputing/reviewing receivable balances (Meduri, Valley Select) and related-party balances. · basis: Receiver relies on limited unaudited financial information prepared by the Debtor, including reviewed financial statements for the year ended May 31, 2026; Receiver has not audited or verified the information. Related party balances are 'based on the Debtor's records and have not been verified by the Receiver'; unsecured claims 'have not been verified by the Receiver'. · scope: Starline Foods Inc. (single entity, Debtor); no consolidated statement of assets and liabilities is presented · currency: CAD
- operational summaryThe Receiver has ceased the Debtor's blueberry processing operations while keeping the refrigeration plant running to preserve frozen inventory, shipping existing inventory to customers (e.g. All Gold) where commercially reasonable; employees have been terminated and the Facility is on care and maintenance pending a sale process.
- professional feesnote: No professional fees of the Receiver or its legal counsel have been paid; the Receiver is not seeking approval of its fees and disbursements at this time. No amount of incurred fees is stated. · party: Receiver (Deloitte Restructuring Inc.) and its legal counsel (Gowling WLG) · period: September 21, 2026 to October 29, 2026 · currency: CAD
- receipts cumulativenote: Primarily $324,754 from BMO bank accounts, blueberry sales to All Gold of $222,879, accounts receivable collections of $334,152, GST refunds of $79,784, and rent income of $18,000. · since: Date of Receivership (September 21, 2026) to October 29, 2026 · amount: 980075 · currency: CAD
- report date2 November 2026
- report noFirst Report of the Court-Appointed Receiver of Starline Foods Inc.