Ontario · Foreign recognition (CCAA)
Third Report of the Information Officer (October 16, 2019)
Court officer report · 16 October 2019
What we verified from this filing11 verified · 1 withheld
- cash on handnote: Component of Canadian Acquired Assets on JC Canada Group's balance sheet; excludes Load Broker Trust Funds of approximately $376,000 held separately. · as at: 2019-08-30 · amount: 415000 · currency: USD · qualifier: approximately
- financial positionnote: Canadian Acquired Assets comprised primarily of: cash of approximately $415,000; Load Broker Trust Funds of approximately $376,000; accounts receivable of approximately $4.0 million; prepaids and other assets of approximately $1.1 million; equipment and spare parts inventory of approximately $2.1 million. Assumed Liabilities comprised primarily of: trade payables, Load Broker Parties payables, professional fees and other accrued obligations of approximately $900,000; and accrued payroll and other employee related accruals of approximately $1.0 million. No total assets or total liabilities figure is stated. · as at: 2019-08-30 · basis: JC Canada Group's balance sheet (component breakdown of Canadian Acquired Assets and Assumed Liabilities under the Stalking Horse APA) · scope: JC Canada Group only (Canadian Acquired Assets and Assumed Liabilities), not the consolidated Chapter 11 Debtors · currency: USD
- operational summaryThe JC Canada Group continues to operate pending closing of the court-approved Sale Transaction, which is expected to preserve going-concern operations, all 181 Canadian jobs, and existing terminal leases and customer relationships; the Information Officer recommends the sale as reasonable.
- process resultsbids: 0 · ndas: 5 · note: no Qualified Bids received other than the Stalking Horse APA · as of: 2019-10-01 · solicited: 104 · qualified bids: 0
- professional feesnote: Excludes HST; expenses and disbursements of CAD$35,663.54 also excluded from this fee figure. Stikeman Elliot LLP (Information Officer's legal counsel) separately reported fees of CAD$145,041.95 plus disbursements of CAD$1,359.72 for the same period, both excluding HST. A combined cap of CAD$30,000 (Information Officer) and CAD$20,000 (Stikeman) was also sought for fees to completion. · party: Information Officer (Alvarez & Marsal Canada Inc.) · amount: 189171 · period: July 25, 2019 to October 15, 2019 (the A&M Application Period) · currency: CAD
- purchaserprice: note: no less than $425,000,000 plus all accrued and unpaid interest on certain of the Chapter 11 Debtors secured credit facilities, and the Expense Reimbursement · basis: credit_bid · amount: 425000000 · sealed: false · currency: USD · scope: certain assets of the Chapter 11 Debtors over which this Court has jurisdiction (the 'Canadian Acquired Assets') · status: approved · name note: referred to only as 'the Buyer', a newly formed entity affiliated with the Junior Term Loan Lenders ('New Jack Cooper') · structure: assets · name source: recital · relationship: unstated · agreement date: 2019-08-23
- recovery outcomeentries: basis: liquidation_alternative · quote: Based on this analysis, the Information Officer estimates that in a liquidation scenario, taking into account claims that could arise in a liquidation, such as potential trust claims of the Load Broker Parties, employee termination and severance claims, lease termination claims and customer setoffs and damages claims for non-performance, and a valid intercompany debt claim of $16.9 million, recoveries to the Affected Creditor Group would likely fall within a range of approximately 5% to 20%. · pct of: unstated · outcome: distribution · pct low: 5 · pct high: 20 · class key: unsecured · stated by: monitor · class label: Affected Creditor Group · claims amount: 500000 · interim final: unstated · claims qualifier: listed; basis: liquidation_alternative · quote: Applying the range of estimated recoveries to the amounts owed to the Affected Creditor Group, recoveries to the group in a liquidation scenario are estimated to range from approximately $25,000 to $100,000 in the aggregate. · pct of: unstated · outcome: distribution · class key: unsecured · stated by: monitor · amount low: 25000 · amount high: 100000 · class label: Affected Creditor Group · interim final: unstated · claims qualifier: unstated; basis: estimated · quote: Due to the significant amount of other claims, including the ERISA Claim in the Chapter 11 Proceedings for $2.1 billion, the approximately $500,000 owing to the Affected Creditor Group represents an immaterial portion of the total claims pool and will likely result in no distributions being made to the Affected Creditor Group. · pct of: unstated · outcome: nil · class key: unsecured · stated by: monitor · class label: Affected Creditor Group · interim final: unstated · conditional on: Due to the significant amount of other claims, including the ERISA Claim · claims qualifier: unstated; basis: liquidation_alternative · quote: If the range of estimated recoveries were applied to the amounts owed to the Affected Creditor Group, aggregate estimated recoveries to the group in a liquidation scenario would likely range from approximately $20,000 to $90,000; · pct of: unstated · outcome: distribution · class key: unsecured · stated by: monitor · amount low: 20000 · amount high: 90000 · class label: Affected Creditor Group · interim final: unstated · claims qualifier: unstated · stated on: 2019-10-16 · table missing:
- report date16 October 2019
- report noThird Report
- sale advisorHoulihan Lokey, Inc.
- sale outcometext: the Chapter 11 Debtors declared the Buyer as the Successful Bidder and cancelled the auction previously scheduled, effectively concluding the Sale Process · scope: whole_business · status: approved
1 extracted value is withheld: either a trap-shaped field where models produce confident wrong numbers, or an identity value whose quotation could not be found in the document. Withheld values are shown to no one.