Newfoundland and Labrador · Bankruptcy
Trustee's Preliminary Report
Court officer report · undated
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 filing16 verified
- court file no25186
- proceeding typebia_bankruptcy
- provinceNewfoundland and Labrador
- appointeeBDO Canada Limited
- appointee roletrustee
- commencement date12 December 2025
- financial positionnote: Deficiency to unsecured creditors stated as $(3,499,247). Cash is approx. $46,000 withheld by the Monitor for CRA deemed trust claim for post-CCAA HST plus interest, held in trust by the Trustee. Most assets were sold to Newco in the Transaction closed Nov 12, 2025. · page: 4 · as at: 2025-12-12 · basis: Statement of Affairs prepared from Company's internal records; not audited, reviewed or verified by BDO. Total assets shown as net book value $46,954; estimated net realization $46,953 (cash $46,953; shares of 81502NL $1 book, nil realization). Liabilities are estimated net realization basis: secured $200,000, preferred nil, unsecured $3,346,200. · scope: Karwood Contracting Ltd. (single entity) only; 100% owned subsidiary 81502NL carried as shares only · currency: CAD · total assets: 46954 · total liabilities: 3546200
- unsecured creditorsnote: Document names no individual creditors in this aggregate. Preferred claims per SOA: nil. Proofs of claim filed to date: $548,242 unsecured (Trustee has not adjudicated claims) — a different figure from the reported amount. · page: 4 · as of: December 12, 2025 · basis: Statement of Affairs, estimated net realization column; prepared from Company's internal records, not audited, reviewed or verified by BDO · amount: 3346200 · debtor: Karwood Contracting Ltd. · creditor: Unsecured creditors (aggregate as reported) · currency: CAD
- secured creditorsnote: Park Avenue was transferred to related party 77592 NL Inc. for $1.00 on Sept 12, 2024 (potential transfer at undervalue; Court authorized Kent Building Supplies to pursue action under s.36.1(1) CCAA, Trustee expects no funds for unsecured creditors). Separately, Moskowitz is mortgage lender of 81502NL, owed 'in excess of $3.2 million' per receiver's notice dated Dec 29, 2025 (floor; that is a debt of 81502NL, whose shares Karwood owns, not Karwood's balance); private receiver appointed Dec 15, 2025 over 81502NL, and highest offer on Kenmount Property approx. $3.0 million. · page: 6 · as of: December 29, 2025 · debtor: Karwood Contracting Ltd. (and related party 81502NL) · creditor: Moskowitz Capital Mortgage Fund II Inc. · currency: CAD · security: Mortgage security and multiple PPSA registrations related to 166 Park Avenue, Mount Pearl (1.3-acre parcel); mortgage dated Nov 21, 2023, reg. no. 1098210, amended Apr 22, 2024 when secured mortgage was $450,000 (amendment-date figure, not a current balance)
- secured creditorsnote: Amount 'approximately $640,000'. Land was sold in the Transaction (vesting order Oct 24, 2025), so the security is no longer part of the estate; Trustee understands Boreal would have an unsecured claim. Not counted in SOA secured claims. · page: 6 · amount: 640000 · debtor: Karwood Contracting Ltd. · creditor: Boreal Atlantic Ltd. · currency: CAD · security: Mortgage security against a 7,318 square metre parcel on Kenmount Road, Paradise, NL
- secured creditorsnote: Amount 'approximately $160,000'. Properties were sold under CCAA vesting orders, so security no longer part of the estate; Trustee understands they would have an unsecured claim. Related party: Randy Oram is a director of Karwood. · page: 6 · amount: 160000 · debtor: Karwood Contracting Ltd. · creditor: Tammy and Randy Oram · currency: CAD · security: Mortgage security on two partially complete residential homes in Paradise, NL
- secured creditorsnote: Amount is the Trustee's estimate ('approximately $200,000'); DIP Lender's Charge only partially settled by distributions. Trustee anticipates a significant shortfall on this secured claim. Claims as filed: secured claims nil. · page: 6 · as of: date of bankruptcy (December 12, 2025) per SOA · amount: 200000 · debtor: Karwood Contracting Ltd. · creditor: 98536 Newfoundland and Labrador Inc. (assignee of BMO's DIP Facility and DIP Lender's Charge) · currency: CAD · security: DIP Lender's Charge granted in ARIO (Feb 20, 2025), maximum $750,000; top-ranking secured position on any proceeds from the bankrupt estate. Assigned from BMO by Assignment Agreement dated October 24, 2025. Administration Charge (max $250,000, first ranking) was settled by distributions.
- secured creditorsnote: Balance approximately $246,000 including accrued interest to October 15, 2025 (per Monitor's report as recited). Park Avenue was transferred out to a related party before CCAA. · page: 7 · as of: 2025-10-15 · amount: 246000 · debtor: Karwood Contracting Ltd. · creditor: Canadian Western Trust Company · currency: CAD · security: Mortgage dated April 25, 2024, reg. no. 111675, related to Park Avenue; secured mortgage was $235,000 at time of July 8, 2024 amendment
- secured creditorsnote: Vehicle transferred in the Transaction with purchaser assuming the related debt. · page: 7 · debtor: Karwood Contracting Ltd. · creditor: Ford Credit Canada Company · currency: CAD · security: PMSI on vehicle financing for a 2022 Ford F150
- secured creditorsnote: Assets transferred in the Transaction; related debt fully repaid prior to bankruptcy. · page: 7 · as of: prior to date of bankruptcy · debtor: Karwood Contracting Ltd. · creditor: Steelcase Financial Services Ltd. · currency: CAD · security: PMSI on financing of office furniture
- recovery outcomeentries: basis: estimated · quote: The Trustee anticipates there will be a significant shortfall in satisfying the secured claim of the DIP Lender and that no funds will be available for distribution to Karwood's unsecured creditors. · pct of: unstated · outcome: shortfall · class key: secured · stated by: trustee · class label: DIP Lender · claims amount: 200000 · creditor name: Bank of Montreal · interim final: unstated · claims qualifier: estimated; basis: estimated · quote: The Trustee anticipates there will be a significant shortfall in satisfying the secured claim of the DIP Lender and that no funds will be available for distribution to Karwood's unsecured creditors. · pct of: unstated · outcome: nil · class key: unsecured · stated by: trustee · class label: Karwood's unsecured creditors · interim final: unstated · claims qualifier: unstated · stated on: 2026-01-07 · table missing: