Manitoba · Interim receivership
Trustee’s Report on the Proposal
Court officer report · 11 December 2017
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 filing2 verified
- financial positionnote: No overall totals stated; components not summed. Assets per Statement of Affairs: Accounts Receivable - Trade $1,703,977; Cash $196,528 (as at December 8, 2017); Machinery, Plant and Equipment $9,687,533; Real Property $200,000; Other Property - Statement of Claim $1,000,000 (contingent recovery provision). Liabilities: declared unsecured creditors $1,092,202 (List A, excluding unsecured portion of secured claims); secured creditors' claims total $16,515,668 (List B) against secured assets of $12,788,039, with estimated unsecured shortfall of $3,727,629. Shareholder claims, understood to exceed $1.0 million, are not included in the declared unsecured amounts. The Statement of Affairs is dated at the NOI date (August 18, 2017) for liabilities; cash is as at December 8, 2017. The Trustee notes the full extent of the apparent fraud and its impact on the Company's financial position is not yet known and that the Company's financial records appear to have been misrepresented. · basis: Company's Statement of Affairs (management estimates of asset values, with equipment at fair market value for retained equipment and forced liquidation value for returned equipment); the Trustee has not independently verified values beyond equipment appraisals and PPR review. · scope: Single entity: R. Litz & Sons Company Limited (not consolidated) · currency: CAD
- recovery outcomeentries: basis: plan · quote: As noted, the Proposal is projected to produce an average distribution to overall unsecured creditor claims of approximately 7.6 percent, although creditors with claims of $1,500 or less, or those creditors that choose to reduce their claim to $1,500 would recover a higher percentage distribution. · pct of: unstated · outcome: distribution · pct low: 7.6 · pct high: 7.6 · class key: unsecured · stated by: proposal_trustee · class label: unsecured creditors · claims amount: 1092202 · interim final: unstated · claims qualifier: listed; basis: liquidation_alternative · quote: As a result, in a bankruptcy scenario, no recovery to unsecured creditors is anticipated. · pct of: unstated · outcome: nil · class key: unsecured · stated by: proposal_trustee · class label: unsecured creditors · interim final: unstated · claims qualifier: unstated · table missing: STATEMENT OF ESTIMATED REALIZATIONS