Ontario · CCAA
Pre-filing report of the proposed Monitor
Pre-filing report · 30 January 2023
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 filing8 verified
- financial positionnote: Proposed Monitor concludes OTE Group is balance sheet insolvent - aggregate value of property does not appear sufficient to pay obligations due and accruing due (para 41, 109). Liabilities total excludes CRA obligations, shown as 'TBD' in the table. · page: 8 · as at: 2023-01-30 · basis: Unaudited estimate prepared by management/OTE Group, subject to further confirmation through the CCAA process; excludes potential CRA obligations (TBD), and excludes certain notes receivable/payable pending further investigation · scope: OTE Group on a combined basis (Original Traders Energy Ltd., 2496750 Ontario Inc., Original Traders Energy LP, and OTE Logistics LP) · currency: CAD · total assets: 67523927 · total liabilities: 91392669
- secured creditorsnote: Regulatory/quasi-governmental claim - fuel tax and gasoline tax remittance obligations (inclusive of penalty and interest); narrative breaks out ~$6.5M fuel tax and ~$31.6M gasoline tax (approximate, as at date of report, see p.12). Separate from the $2.0M license security bond/replacement security discussions with MOF. · page: 8 · as of: 2023-01-30 · amount: 38050958 · debtor: Original Traders Energy LP · creditor: Ontario Ministry of Finance · currency: CAD
- secured creditorsnote: Notice of Arrears under s.97.22(1) of the Customs Act; quasi-governmental claim; nature and quantum subject to further investigation. Narrative describes amount as 'approximately $19.4 million' (p.12). · page: 8 · as of: 2022-12-06 · amount: 19376773 · debtor: Original Traders Energy LP · creditor: Canada Border Services Agency · currency: CAD
- secured creditorsnote: Deemed-trust class claim (excise tax and federal carbon tax remittances for July 2022-Jan 2023 outstanding); amount currently unknown/TBD as OTE LP is subject to an ongoing CRA audit. · page: 8 · debtor: Original Traders Energy LP · creditor: Canada Revenue Agency · currency: CAD
- secured creditorsnote: RBC Forbearance Agreement (Jan 26 2023): RBC to be unaffected by stay/plan, security to be senior to all court-ordered charges; Monitor has not yet reviewed the Security (under review by Monitor's Counsel, opinion pending). · page: 10 · as of: 2023-01-30 · amount: 3500000 · debtor: Original Traders Energy LP · creditor: Royal Bank of Canada · currency: CAD · security: RBC Loan Agreement (dated Apr 27 2021, amended) - revolving lease line of credit (facility limit $5,000,000); outstanding balance ~$3.5M. No outstanding amounts on $3,000,000 revolving demand facility or $1,375,000 revolving demand facility by way of letters of guarantee; other facilities (credit card up to $30,000, FX forward contracts) also outstanding at nil.
- secured creditorsnote: Identified in Hill Affidavit as a category of OTE Group's secured debt; no aggregate amount stated, components not disclosed. · page: 10 · debtor: OTE Group · creditor: Secured lessors (real property and equipment leases) · currency: CAD · security: Various real property and equipment leases
- secured creditorsnote: Related party secured debt - liability of 249 Ontario and OTE Logistics to OTE LP and OTE, per Hill Affidavit; amount not stated. · page: 10 · debtor: 2496750 Ontario Inc. and OTE Logistics LP · creditor: Original Traders Energy LP / Original Traders Energy Ltd. (OTE) · currency: CAD · security: Intercompany secured liability
- secured creditorsnote: Same RBC Forbearance Agreement as above applies; security review by Monitor's Counsel not yet completed. · page: 11 · as of: 2023-01-30 · amount: 1000000 · debtor: OTE Logistics LP (formerly Gen7 Fuel Management Services LP) · creditor: Royal Bank of Canada · currency: CAD · security: Second RBC Loan Agreement (dated Sept 22 2021) - revolving lease line of credit (facility limit $2,000,000); outstanding balance ~$1.0M. No outstanding amounts on $200,000 revolving demand facility or credit card facility (limit $50,000).