British Columbia · Receivership (court-appointed)
Preliminary Report of the Receiver - 25 January 2017
Court officer report · 25 January 2017
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What we verified from this filing14 verified
- applicantCIBT Finance (2017) Corp.
- appointeeBDO Canada Limited
- appointee roleinterim receiver
- courtIN THE SUPREME COURT OF BRITISH COLUMBIA
- statutory basissection 47(1) of the Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, as amended and section 39 of the Law and Equity Act, R.S.B.C. 1996 c.253, as amended
- unsecured creditorsnote: Described as 'unsecured and unauthorized overdraft facility with a commercial bank'; extreme uncertainty as to bank's willingness to extend it. · page: 4 · as of: 2016-09-30 · basis: Reported in KGIC Inc.'s Q3 2016 MD&A/press release as an unsecured and unauthorized overdraft facility · amount: 1335298 · debtor: KGIC Inc. · creditor: Unsecured commercial bank overdraft facility (unnamed bank) · currency: CAD
- financial positionnote: Shareholders' deficit of $(17,953,000). Of total assets, $8,098,000 comprised of trade names, IP development and goodwill, which the Receiver notes 'may have negligible value in a liquidation.' Receiver anticipates recoveries from Prepaid expenses, Rent deposits, Intangible assets and Goodwill could be nominal, and recoveries from Inventory, Accounts receivable and Capital assets could be severely impaired. · page: 5 · as at: 2016-09-30 · basis: Q3 2016 consolidated Balance Sheet of KGIC Inc. as filed with SEDAR, described as unaudited · scope: Consolidated - KGIC Inc. and its operating subsidiaries (KGIC Group) · currency: CAD · total assets: 16690000 · total liabilities: 34643000
- secured creditorsnote: Labelled 'Bank Debt' on Q3 2016 unaudited consolidated balance sheet ($,000's, so $12,958,000). CIBT Finance (2017) Corp. ('CF2017') has taken an assignment of BMO's debt and issued a s.244 Notice to enforce its security. CF2017 is related to Sprott Shaw and CIBT Education Group Inc. (interested purchaser), a related-party dynamic. · page: 5 · as of: 2016-09-30 · amount: 12958000 · debtor: KGIC Inc. · creditor: Bank of Montreal (BMO) / CIBT Finance (2017) Corp. (assignee) · currency: CAD · security: Bank Debt (line item on consolidated balance sheet); security enforced via s.244 Notice
- unsecured creditorsnote: Aggregate figure as reported; no specifics on whether this is a deemed-trust/regulatory class provided in this excerpt. · page: 5 · as of: 2016-09-30 · basis: Line item 'Taxes Payable' on KGIC Inc.'s consolidated unaudited 30 Sept 2016 balance sheet ($,000's) · amount: 6000 · debtor: KGIC Inc. · creditor: Taxes Payable (aggregate as reported) · currency: CAD
- unsecured creditorsnote: Represents student tuition prepayments recorded as a liability; aggregate figure, no individual creditors named. · page: 5 · as of: 2016-09-30 · basis: Line item 'Deferred Revenue' on KGIC Inc.'s consolidated unaudited 30 Sept 2016 balance sheet ($,000's) · amount: 6716000 · debtor: KGIC Inc. · creditor: Deferred Revenue (student prepayments, aggregate as reported) · currency: CAD
- unsecured creditorsnote: Aggregate figure as reported; document names no individual trade creditors. · page: 5 · as of: 2016-09-30 · basis: Line item 'Accounts Payable' on KGIC Inc.'s consolidated unaudited 30 Sept 2016 balance sheet ($,000's) · amount: 7582000 · debtor: KGIC Inc. · creditor: Trade creditors (Accounts Payable, aggregate as reported) · currency: CAD
- unsecured creditorsnote: Aggregate figure as reported. · page: 5 · as of: 2016-09-30 · basis: Line item 'Leasehold Inducements' on KGIC Inc.'s consolidated unaudited 30 Sept 2016 balance sheet ($,000's) · amount: 128000 · debtor: KGIC Inc. · creditor: Leasehold Inducements · currency: CAD
- unsecured creditorsnote: Subject to proposed (rejected) debt restructuring/equity conversion plan; plan rejected by a significant block of unsecured convertible debenture holders per Q3 2016 press release. · page: 5 · as of: 2016-09-30 · basis: Line item 'Convertible Debentures' on KGIC Inc.'s consolidated unaudited 30 Sept 2016 balance sheet ($,000's) · amount: 6542000 · debtor: KGIC Inc. · creditor: Unsecured convertible debenture holders · currency: CAD
- unsecured creditorsnote: Related party (shareholder) debt. · page: 5 · as of: 2016-09-30 · basis: Line item 'Shareholder Loan' on KGIC Inc.'s consolidated unaudited 30 Sept 2016 balance sheet ($,000's) · amount: 711000 · debtor: KGIC Inc. · creditor: Shareholder Loan · currency: CAD