Quebec · Proposal
Motion for the Approval of an Amended Proposal and for the Reorganization of Share Capital
Application / notice of application · 9 August 2016
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What we verified from this filing16 verified
- applicantSociable Labs Inc.
- appointeeDeloitte Restructuring Inc.
- appointee roleTrustee
- courtSUPERIOR COURT
- court file no500-11-050935-168
- provinceQUEBEC
- statutory basisart. 58 and 59(4) of the Bankruptcy and Insolvency Act, RSC (1985) c. B-3 and 191 of the Canada Business Corporations Act, RSC (1985) c. 0-44
- secured creditorsnote: Also a shareholder of the Debtor (related party); secured claim to be dealt with per existing agreements as modified by restructuring negotiations; no balance amount stated · page: 3 · as of: 2016-06-30 · debtor: Sociable Labs Inc. · creditor: Investissement Québec (IQ) · currency: CAD · security: Security interest over assets of the Debtor registered on the RPMRR; secured claim over research and development tax credits to be received by the Debtor
- commencement date30 June 2016
- financial positionnote: Total indebtedness of $2,142,676 includes $1,239,650 in unsecured indebtedness; cumulated deficit of $4.3M over 2-year period ended March 31, 2016 per Trustee's Report; shareholders in deficit position and share capital has no value as Debtor is insolvent · page: 4 · as at: 2016-06-30 · basis: Statement of affairs filed with the Proposal · scope: Sociable Labs Inc. (single entity) · currency: CAD · total liabilities: 2142676
- unsecured creditorsnote: Document names no individual unsecured creditors; total indebtedness stated as $2,142,676, including $1,239,650 in unsecured indebtedness; excludes IQ Notes Claim and Rho Notes Claim listed separately · page: 4 · as of: 2016-06-30 · basis: Statement of affairs filed with the Proposal, as reported · amount: 1239650 · debtor: Sociable Labs Inc. · creditor: Unsecured creditors (aggregate as reported) · currency: CAD
- secured creditorsnote: Payment of CAD $100,000 to Trustee within 15 business days of approval, in full settlement of VLL's secured claim (settlement amount, not necessarily original balance) · page: 5 · as of: Date of approval of the Amended Proposal · amount: 100000 · debtor: Sociable Labs Inc. · creditor: Venture Lending & Leasing VI, Inc. and Venture Lending & Leasing VII, Inc. (VLL) · currency: CAD · security: Security interest over assets of the Debtor registered on the RPMRR
- unsecured creditorsnote: Related party (shareholder); Rho renounced dividend for this unsecured claim · page: 5 · as of: Amended Proposal date (2016-07-11) · basis: Unsecured claim with respect to a promissory note (Rho Notes Claim), per Amended Proposal · amount: 315000 · debtor: Sociable Labs Inc. · creditor: Rho Canada Ventures II L.P. / Rho Investment Partners Canada II L.P. (Rho) · currency: CAD
- unsecured creditorsnote: Related party (shareholder and secured creditor); IQ renounced dividend for this unsecured claim · page: 5 · as of: Amended Proposal date (2016-07-11) · basis: Unsecured claim with respect to a promissory note (IQ Notes Claim), per Amended Proposal · amount: 315000 · debtor: Sociable Labs Inc. · creditor: Investissement Québec (IQ) · currency: CAD
- unsecured creditorsnote: Preferred claim class; lessor's preferred claim for unpaid rent arrears limited to estimated realization value of $2,500 for property on leased premises · page: 6 · as of: Amended Proposal date (2016-07-11) · basis: Amended Proposal, preferred claims payable in priority to unsecured claims per s.136(1) BIA · debtor: Sociable Labs Inc. · creditor: Preferred claims (including lessor arrears for unpaid rent) · currency: CAD
- recovery outcomeentries: basis: plan · quote: As such, assuming all unsecured creditors with a right to a dividend in the Amended Proposal would file a valid proof of claim at the amount estimated in the statement of affairs of the Debtor, unsecured creditors would receive an average dividend of approximately 6.8% of their proven claim as part of the Amended Proposal; · pct of: proven_claims · outcome: distribution · pct low: 6.8 · currency: CAD · pct high: 6.8 · class key: unsecured · stated by: debtor · amount low: 23000 · amount high: 23000 · class label: Ordinary Unsecured Creditors · interim final: unstated · conditional on: payment of the lesser between each unsecured creditor's accepted and proven claim and the first $1,000 of such claim, then any remaining amount paid pro rata · currency quote: CAD $100,000 · claims qualifier: unstated; basis: plan · quote: ii) VLL: a payment of CAD $100,000 will be remitted to the Trustee within fifteen (15) business days of the date of approval of the Amended Proposal, to be paid to VLL in full settlement of VLL's secured claim, the whole in accordance with the Amended Proposal and agreements negotiated between VLL and the Debtor as part of the present restructuring; · pct of: unstated · outcome: distribution · currency: CAD · class key: secured · stated by: debtor · amount low: 100000 · amount high: 100000 · class label: VLL (Venture Lending & Leasing VI, Inc. and Venture Lending & Leasing VII, Inc.) · creditor name: VLL · interim final: unstated · conditional on: in full settlement of VLL's secured claim · currency quote: CAD $100,000 · claims qualifier: unstated; basis: liquidation_alternative · quote: In a bankruptcy, both unsecured and preferred creditors pursuant to s. 136 BIA would not receive any Dividend, and the secured creditors would incur a greater loss. · pct of: unstated · outcome: nil · class key: preferred · stated by: debtor · class label: unsecured and preferred creditors pursuant to s. 136 BIA · interim final: unstated · claims qualifier: unstated; basis: liquidation_alternative · quote: In a bankruptcy scenario, considering the liquidation value of the assets, the priority claims and the secured claims, no dividend would be available for the unsecured creditors and the liquidation of the assets would only allow for a partial repayment of the secured claims, whereas the Amended Proposal does provide for a dividend for the unsecured creditors and a substantial recovery for the affected secured creditors, while preserving employment for approximately 15 employees of the Debtor, as appears from the Second Trustee's Report, R-5: · pct of: unstated · outcome: nil · class key: unsecured · stated by: debtor · class label: unsecured creditors · interim final: unstated · claims qualifier: unstated · stated on: 2016-07-11 · table missing: