Manitoba · NOI
Trustee Report on Proposal - Final
Court officer report · 8 August 2014
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 filing9 verified
- unsecured creditorsnote: Related-party claim; subject to possible challenge under BIA ss. 95, 96 and postponement under s. 137(1). Proposal para 5(d) has the Company arranging for TCIG to withdraw or postpone a portion of its claim to equal other proven unsecured claims (50-50 sharing). Estimated realization table treats TCIG claim at $1,000,000 post-reduction (Statement of Estimated Realizations, accepted-proposal scenario). Not a proof of claim filed. · page: 7 · as of: May 31, 2014 (balance per Interco Ledger, after allocation of sale proceeds) · basis: Balance reflected by the Company in its Statement of Affairs; Interco Ledger showed $9,693,000 (9,693,094) at May 31, 2014 before the $2,615,974 allocation of sale proceeds. Related party, not at arm's length; limited supporting documentation. · amount: 7077120 · debtor: 3965521 Manitoba Limited (formerly Arctic Beverages Limited) · creditor: Tribal Councils Investment Group of Manitoba (TCIG) - parent / intercompany · currency: CAD
- financial positionnote: Total liabilities not stated as a single figure in the report. Liabilities described as unsecured creditor claims and an intercompany obligation to TCIG ($7,077,120 per Statement of Affairs). The report states the Company does not believe any secured claims remain, as they were addressed by the Court in distribution of sale proceeds (Proposal para 1 comment): 'the Company does not believe that there are any remaining secured claims'. Company also does not believe it has any preferred, certain employee, or certain CRA claims outstanding (para 2). Post-NOI claims estimated at approximately $10,000 against a $25,000 fund. Book value of intercompany receivables not in bankruptcy, with no recovery reflected: First Canadian Fuels $8,672,517; First Nations Financial Services $2,400,000; others minor. · page: 11 · basis: Estimated realizable values in a bankruptcy situation per the Company's Statement of Affairs; total of estimated realizations: cash $616,730, GST refunds $53,993, intercompany dividends $90,000 (6349537 Manitoba Limited $50,000, Precambrian Wholesale Limited $40,000), other recoveries nil. Estimated figures, not audited. · scope: 3965521 Manitoba Limited (formerly Arctic Beverages Limited), single entity · currency: CAD · total assets: 760723
- unsecured creditorsnote: Document names no individual unsecured creditors in this report other than a former employee. Includes the former employee, who asserts a claim of approximately $350,000 for a 2013 termination; the employee was added to the creditor list at a nominal amount and the claim has not been assessed (disputed/unassessed). Figure is an estimate, not proofs filed. · page: 11 · basis: Estimated unsecured claims declared by the Company (Statement of Estimated Realizations); the Company's Statement of Affairs reported liabilities, differences from filed claims to be reported at the creditors' meeting. · amount: 1000000 · debtor: 3965521 Manitoba Limited (formerly Arctic Beverages Limited) · creditor: Unsecured creditors other than TCIG (aggregate as declared by Company) · currency: CAD
- closing confirmedscope: the Company's business · outcome: completed · date basis: unstated · approval order date: 2014-06-23
- purchaserprice: note: net proceeds distributed under the June 23, 2014 Amended and Restated Sale Approval and Vesting Order; remaining proceeds held by the Proposal Trustee; no price stated in the text present · sealed: false · scope: the Company's business, as a going concern · status: closed · name note: report describes a going concern sale of the business to "a new group, unrelated to TCIG"; purchaser not named in the text present · structure: assets · name source: recital · relationship: unstated
- recovery outcomeentries: basis: plan · quote: the estimated distribution to unsecured creditors is estimated at 35%(less the levy required by the Act), as set out in the table below. · pct of: unstated · outcome: distribution · pct low: 35 · pct high: 35 · class key: unsecured · stated by: proposal_trustee · class label: unsecured creditors · interim final: unstated · conditional on: less the levy required by the Act · claims qualifier: unstated; basis: liquidation_alternative · quote: this scenario, based on the assumptions used, estimates a recovery to other creditors of 35%, which is approximately the same outcome as estimated under the Proposal. · pct of: unstated · outcome: distribution · pct low: 35 · pct high: 35 · class key: unsecured · stated by: proposal_trustee · class label: other creditors (Scenario 1: successful challenge under sections 95 and 96) · interim final: unstated · conditional on: hypothetical scenario assuming a successful challenge under sections 95 and 96 and recoveries from TCIG and other related entities · claims qualifier: unstated; basis: liquidation_alternative · quote: this scenario, based on the assumptions used, estimates a recovery to other creditors of just under 8%, which is significantly lower than the amount estimated through the Proposal. · pct of: unstated · outcome: distribution · pct low: 8 · pct high: 8 · class key: unsecured · stated by: proposal_trustee · class label: other creditors (Scenario 3: challenges to the TCIG claim unsuccessful) · interim final: unstated · conditional on: hypothetical scenario assuming challenges to the TCIG claim are not successful and related-party recoveries produce no net recoveries; stated as just under 8% · claims qualifier: unstated · table missing:
- sale advisorPricewaterhouseCoopers Corporate Finance
- sale outcometext: Court-supervised sale process resulted in a going concern sale of the Company's business to a new group unrelated to TCIG; net proceeds distributed per the June 23, 2014 Amended and Restated Sale Approval and Vesting Order; business no longer operating. · scope: whole_business · status: closed
- secured creditors