Alberta · Receivership (court-appointed)
Affidavit of John Hermann (BMO) Sworn January 2, 2026 (Filed)
Affidavit · 2 January 2026
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What we verified from this filing4 verified
- secured creditorsnote: Interest accrues at 3.00% above Prime on the loan balance. Also guaranteed by Services (Services Guarantee) and personally guaranteed jointly and severally by Landon Derk and Michelle Derk (First Landon-Michelle Guarantee, limited to $2,320,000.00) and by Darrell Derk (First Darrell Guarantee, limited to $2,320,000.00). BMO demanded payment and served NOI on Sept 12, 2025; Forbearance Agreement (Oct 20, 2025) expired Nov 28, 2025 with Event of Default declared. · page: 2 · as of: 2025-12-30 · amount: 2076679.12 · debtor: 5 Star Operations Holding Ltd. ("Holding") · creditor: Bank of Montreal (BMO) · currency: CAD · security: Loan #2792-6997-289; secured by Mortgage of Land dated Jan 26, 2022 (registration no. 222 146 071, principal ceiling $3,390,000.00 plus interest at 5% above Prime); General Assignment of Rents and Leases (registration no. 222 146 072); Holding General Security Agreement over all present and after-acquired personal and real property; PPSA registration #22031541346 and Land Charge registration #25060930425
- secured creditorsnote: Interest accrues at 3.00% above Prime. Also guaranteed by Holding (Holding Guarantee) and personally guaranteed by Landon Derk and Michelle Derk (Second Landon-Michelle Guarantee, limited to $1,160,000.00) and Darrell Derk (Second Darrell Guarantee, limited to $1,160,000.00). BMO demanded payment and served NOI on Sept 12, 2025. · page: 2 · as of: 2025-12-30 · amount: 436441.36 · debtor: 5 Star Services and Products Inc. ("Services") · creditor: Bank of Montreal (BMO) · currency: CAD · security: Loan #0014-1964-081; secured by Services General Security Agreement dated Jan 26, 2022 over all present and after-acquired personal and real property; PPSA registration #22031541273 and Land Charge registration #25060930494
- secured creditorsnote: Interest accrues at 3.00% above Prime. Same guarantee structure as Loan #0014-1964-081 (Holding Guarantee, and personal guarantees of Landon Derk, Michelle Derk, and Darrell Derk). · page: 3 · as of: 2025-12-30 · amount: 316656.63 · debtor: 5 Star Services and Products Inc. ("Services") · creditor: Bank of Montreal (BMO) · currency: CAD · security: Loan #2792-6997-297; secured by Services General Security Agreement dated Jan 26, 2022 over all present and after-acquired personal and real property; PPSA registration #22031541273 and Land Charge registration #25060930494
- secured creditorsnote: Deemed trust class claim. Per affiant's review of BMO's records and Services' financial statements, Services 'remains indebted to Canada Revenue Agency for at least $1,050,000.00 of source deduction arrears and $250,000.00 of unpaid GST' (components stated separately, not summed). A prior Enhanced Requirement to Pay for $1,062,767.09 (issued Aug 22, 2025) was cancelled by CRA on or about Sept 12, 2025. · page: 7 · debtor: 5 Star Services and Products Inc. ("Services") · creditor: Canada Revenue Agency · currency: CAD