Ontario · Proposal
First Report of Proposal Trustee
Court officer report · 19 November 2020
A plain-language read of this filing opens with a subscription.
What we verified from this filing9 verified
- secured creditorsnote: WFC is guarantor, not primary borrower; forbearance agreement dated October 27, 2020 in place; Proposal Trustee's legal opinion on validity/enforceability of TD's security from Miller Thomson pending (not yet confirmed) as of report date; TD is to be an unaffected creditor under the Proposal · page: 7 · as of: NOI filing date · debtor: Welland Forge Corp. (guarantor); G&J Capital Inc. (borrower) · creditor: The Toronto-Dominion Bank · currency: CAD · security: General security interest against all of WFC's assets, registered under the PPSA; secures $65 million credit agreement dated February 19, 2019 (amended June 30, 2020) - facility limit, not a stated outstanding balance
- secured creditorsnote: Assets proposed for sale (Purchased Assets) are not subject to Xerox's security interest · page: 8 · debtor: Welland Forge Corp. · creditor: Xerox Canada Ltd. · currency: CAD · security: Security interest registered under PPSA as security for lease of photocopiers
- unsecured creditorsnote: Includes approximately $1,800,000 owing to Welland Forge Land Corp. (landlord, related party) and $6,600,000 owing to G&J Capital Inc. (parent company, related party); related parties intend to postpone this debt for the benefit of unsecured creditors · page: 8 · as of: 2020-10-27 · basis: As reported by the Company to the Proposal Trustee · amount: 8500000 · debtor: Welland Forge Corp. · creditor: Related parties (aggregate, including Welland Forge Land Corp. and G&J Capital Inc.) · currency: CAD
- unsecured creditorsnote: Document does not itemise individual trade creditors · page: 8 · as of: 2020-10-27 · basis: As reported by the Company to the Proposal Trustee · amount: 750000 · debtor: Welland Forge Corp. · creditor: Trade creditors (aggregate as reported) · currency: CAD
- unsecured creditorsnote: Contingent/potential claims for termination and severance pay; approximately 45 of 65 terminated employees are unionized (Unifor Local 523); all outstanding wages and vacation pay were paid prior to NOI filing; CRA payroll remittances current · page: 8 · basis: Estimated claims as advised by the Company to the Proposal Trustee · amount: 2065000 · debtor: Welland Forge Corp. · creditor: Former Employees (potential termination and severance pay claims) · currency: CAD
- process resultsnote: figures from the 2016 Sales Process conducted by KPMG · solicited: 30 · qualified bids: 9
- purchaserprice: sealed: false · currency: CAD · scope: three items of WFC's Equipment (the 'Purchased Assets'): Erie 4,000 Metric Ton Press, National 4' Upsetter, and Miller 200 AMP TIG Welder · status: proposed · name note: referred to only as 'the Purchaser'; identified as PC Forge, a sister company located in Port Colborne · structure: assets · name source: recital · relationship: related_party
- sale advisorKPMG Corporate Finance Inc.; Platinum Asset Appraisal
- sale outcometext: Proposal Trustee recommending approval of the sale of the Purchased Assets to the sister company · scope: parcel · status: pending_approval