Ontario · Receivership (court-appointed)
Softab - Receiver's Motion Record
Application / notice of application · 18 September 2025
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What we verified from this filing12 verified
- applicantMotor City Community Credit Union Limited
- courtONTARIO SUPERIOR COURT OF JUSTICE (IN BANKRUPTCY AND INSOLVENCY)
- court file noCV-25-00032108-0000
- appointeeBDO Canada Limited
- appointee roleReceiver
- commencement date15 July 2025
- secured creditorsnote: Deemed trust class (quasi-governmental priority claim) which the Receiver proposes to pay first in the distribution waterfall, ahead of MCCCU's secured claim. · page: 29 · as of: 2025-07-08 · amount: 72740.56 · debtor: Softab Technologies Inc. · creditor: Canada Revenue Agency (CRA) · currency: CAD · security: Deemed trust claim for unremitted payroll source deductions
- unsecured creditorsnote: Proposed to be paid second in the distribution waterfall (after CRA's deemed trust claim), ahead of any residual balance to MCCCU. · page: 29 · as of: Settlement Agreement dated May 17, 2025 · basis: Amount owed by the Debtor for purchase of a water purification system, as stated in the Receiver's First Report and provided for in the Settlement Agreement · amount: 12731.95 · debtor: Softab Technologies Inc. · creditor: High Purity Water Systems · currency: CAD
- secured creditorsnote: Exact dated balance ($1,058,317.61 as at June 18, 2025) stated in Proposed Receiver's Report (original p.56); a prose approximation of 'approximately $1,058,317' as of the same date appears in the First Report (original p.29). Security supported by a limited personal guarantee from Vancho Cirovski (principal/director - personal guarantor) and a limited guarantee from Zurich Pharma Inc. o/a Medicap Laboratories Inc. (related party - also the landlord). Independent legal counsel opinion (confirmed, not pending) states the security is valid and enforceable, 'subject to the usual qualifications.' Softab Equipment sale proceeds ($908,359.50 held by Receiver) are insufficient to fully repay this indebtedness. · page: 56 · as of: 2025-06-18 · amount: 1058317.61 · debtor: Softab Technologies Inc. · creditor: Motor City Community Credit Union Limited (MCCCU) · currency: CAD · security: General Security Agreement ('Softab GSA') over all personal property of the Debtor, perfected and registered first-in-time under the PPSA per independent legal opinion of Dickinson Wright LLP dated August 25, 2025; underlying credit facilities were a Commercial Demand Loan (original amount $500,000) and a Canada Small Business Loan (original amount $500,000) - these are original advances, not balances.
- secured creditorsnote: Independent legal opinion (Dickinson Wright LLP, Aug. 25, 2025) states landlord's claims rank subordinate to the claims of the Credit Union (MCCCU) pursuant to the Landlord Waiver; no landlord claim amount is stated in the document. Medicap is also a related-party limited guarantor of Softab's obligations to MCCCU (see MCCCU entry) and the Debtor's former landlord under a lease terminated July 26, 2024. · page: 121 · debtor: Softab Technologies Inc. · creditor: Zurich Pharma Inc. o/a Medicap Laboratories Inc. (Landlord) · currency: CAD · security: Landlord's claims against the Borrower, subject to a Landlord Waiver
- fee scheduleengagements: form: rate_chart · rows: · money: total: quote: The fees and disbursements charged by DW in representing the Receiver during the period of March 4, 2025 to and including July 31, 2025 were $22,162.42, including HST. · amount: 22162.42 · includes tax: true · includes disbursements: true · approximate: false · period: end: 2025-07-31 · kind: invoice · quote: the period of March 4, 2025 to and including July 31, 2025 · start: 2025-03-04 · approval: quote: THIS COURT ORDERS that the fees and disbursements of the Receiver's counsel, Dickinson Wright LLP, for the period March 4, 2025 to July 31, 2025, as set out in the DW Fee Affidavit be and are hereby approved. · state: approved · averages: rate: 803.98 · quote: Average Hourly Rate $803.98 · currency: · invoices: · firm text: Dickinson Wright LLP · firm quote: DICKINSON WRIGHT LLP · context quote: Counsel for the Receiver
- recovery outcomeentries: basis: unstated · quote: (a) Firstly, $72,740.56 to CRA in full satisfaction of its claim against the Debtor for unpaid source deductions; · pct of: unstated · outcome: paid_in_full · class key: deemed_trust · stated by: receiver · amount low: 72740.56 · amount high: 72740.56 · class label: Canada Revenue Agency (deemed trust - unpaid source deductions) · claims amount: 72740.56 · creditor name: Canada Revenue Agency · interim final: unstated · claims qualifier: unstated; basis: unstated · quote: (b) Secondly, $12,731.95 to HPWS in full satisfaction of amounts owed by the Debtor on the purchase of a water purification system; and · pct of: unstated · outcome: paid_in_full · class key: unsecured · stated by: receiver · amount low: 12731.95 · amount high: 12731.95 · class label: High Purity Water Services · claims amount: 12731.95 · creditor name: High Purity Water Services · interim final: unstated · claims qualifier: unstated; basis: unstated · quote: MCCCU will suffer a shortfall on its indebtedness. · pct of: unstated · outcome: shortfall · class key: secured · stated by: receiver · class label: MCCCU (secured indebtedness) · creditor name: MCCCU · interim final: unstated · claims qualifier: unstated; basis: unstated · quote: No distribution to former employees is proposed by the Receiver. · pct of: unstated · outcome: nil · class key: weppa · stated by: receiver · class label: former employees (WEPPA) · interim final: unstated · claims qualifier: unstated; basis: estimated · quote: Based on the known assets it is anticipated that the secured creditors will incur a shortfall and no distribution will be made to unsecured creditors. · pct of: unstated · outcome: shortfall · class key: secured · stated by: receiver · class label: secured creditors · interim final: unstated · claims qualifier: unstated; basis: estimated · quote: Based on the known assets it is anticipated that the secured creditors will incur a shortfall and no distribution will be made to unsecured creditors. · pct of: unstated · outcome: nil · class key: unsecured · stated by: receiver · class label: unsecured creditors · interim final: unstated · claims qualifier: unstated · stated on: 2025-09-12 · table missing: