Ontario · Receivership (court-appointed)
First Report of the Receiver
Court officer report · 4 December 2023
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 filing3 verified
- secured creditorsnote: Collections for a number of Beacon Leases were to be serviced by Velocity under Subservicer Agreements, but practice was that the Dealer, not Velocity, subserviced the leases. · page: 7 · as of: 2023-10-30 · amount: 2013242 · debtor: Velocity Asset and Credit Corporation / 926749 Ontario Ltd. o/a Clonsilla Auto Sales and Leasing · creditor: Beacon Holdings Ltd. / Beacon Trust · currency: CAD · security: Security interests in 161 lease contracts (the 'Beacon Leases'), remaining after Beacon assigned certain other leases to Enlightened
- secured creditorsnote: Amount is total indebtedness owing by Velocity under the Credit Agreement, excluding accruing fees, expenses and costs, as at the date of the Application (October 13, 2023). Dealer guaranteed Velocity's obligations under Guarantee and Servicing Agreement dated May 26, 2022, capped at CAS Dealer Allocated Amount. Personal guarantees also exist under the Credit Agreement from Hugh Waddell and Adam Mounzer as Personal Guarantors (related party - Waddell is director/officer of both Debtors). · page: 8 · as of: date of the Application · amount: 19406788 · debtor: Velocity Asset and Credit Corporation (borrower); 926749 Ontario Ltd. o/a Clonsilla Auto Sales and Leasing (guarantor under Guarantee and Servicing Agreement) · creditor: Enlightened Funding Corporation · currency: CAD · security: Velocity GSA (May 26, 2022) - blanket security interest in all present and future property, real and personal, of Velocity; Dealer Security Agreement (May 26, 2022) - security interest in Dealer's Leases, Leased Vehicles, Rights, Collections and Dealer Blocked Account; blocked account agreements dated May 20/11, 2022 (never established/utilized)
- secured creditorsnote: Receiver has requested but not received the floor plan financing documents. NextGear has ten remaining vehicles subject to its security, four of which overlap with Enlightened's security. · page: 9 · debtor: 926749 Ontario Ltd. o/a Clonsilla Auto Sales and Leasing (the Dealer) · creditor: NextGear Capital Corporation · currency: CAD · security: Floor plan financing arrangement; floor plan financier retains title to vehicle inventory until paid out by the Dealer (typically on sale or lease)