British Columbia · Proposal
Report of the Trustee on the Proposal - True Leaf Investments
Court officer report · 9 October 2020
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 filing5 verified
- financial positionnote: Position is stated as of the date of filing of the NOI, 'the 1st day of April 2020' (the declaration is sworn 2 October 2020). Total liabilities $6,985,203.00 = unsecured (balance of secured claim) $6,985,202.00 + secured $1.00; preferred and contingent liabilities 0.00. Stated deficiency $6,985,203.00. Secured creditor Lind Asset Management XV, LLC; security is the shares of True Leaf Cannabis, with estimated value $1.00 (listed under Securities in List H as original cost $1.00, estimated to produce 0.00). All asset categories on the statement are 0.00. The report says TLI's assets are significantly less than the value of outstanding debt that TLI has guaranteed. · basis: Statement of Affairs (Form 78) 'as stated and estimated by the officer'; sworn by Darcy Bomford on October 2, 2020 as a full statement of affairs · scope: True Leaf Investments Corp. (TLI) only, non-consolidated · currency: CAD · total assets: 0 · total liabilities: 6985203
- operational summaryTLI had no employees as at the date of the Proposal. Its primary asset is its ownership interest in True Leaf Cannabis Inc. (TLC); the sales process for the Lumby Facility produced no approvable offer above the DIP Lender's debt. The Proposal would let the Canguard entities acquire TLI's shares and let the Company emerge from the proceedings.
- professional feesnote: No fee amount is stated. The report says the Proposal Trustee's fees and expenses to date have been paid by the Company from funds provided by the DIP Lender and Canguard, and that the funds provided are expected to cover its remaining fees to complete the Proposal, so they will not be drawn from the Funds for Distribution. · party: FTI Consulting Canada Inc. (Proposal Trustee) · currency: CAD
- recovery outcomeentries: basis: plan · quote: Creditors with Priority Claims in accordance with the applicable provisions of the BIA, will be paid in full. · pct of: unstated · outcome: paid_in_full · class key: preferred · stated by: proposal_trustee · class label: Creditors with Priority Claims · interim final: unstated · claims qualifier: unstated; basis: liquidation_alternative · quote: Accordingly, in a bankruptcy the expected distribution to the Unsecured Creditors would be NIL. · pct of: unstated · outcome: nil · class key: unsecured · stated by: proposal_trustee · class label: Unsecured Creditors · interim final: unstated · claims qualifier: unstated; basis: plan · quote: The Proposal provides for Funds for Distribution of $10,000 to be distributed on a pro-rata basis to the Unsecured Creditors on account of their Unsecured Creditor Claims. · pct of: unstated · outcome: distribution · currency: CAD · class key: unsecured · stated by: proposal_trustee · amount low: 10000 · amount high: 10000 · class label: Unsecured Creditors · interim final: unstated · conditional on: In the event that the Unsecured Creditors vote to accept the Proposal and all of the conditions precedent in Article V of the Proposal are satisfied · currency quote: all monetary amounts contained herein are expressed in Canadian Dollars · claims qualifier: unstated; basis: liquidation_alternative · quote: The liquidation and sale of the Company's assets upon bankruptcy will result in no distribution to Unsecured Creditors. · pct of: unstated · outcome: nil · class key: unsecured · stated by: proposal_trustee · class label: Unsecured Creditors · interim final: unstated · claims qualifier: unstated · stated on: 2020-10-09 · table missing:
- report date9 October 2020