Ontario · NOI
Motion Record – Applicant
Application / notice of application · 23 December 2024
A plain-language read of this filing opens with a subscription.
What we verified from this filing8 verified
- applicantCancom Security Inc.
- commencement date23 December 2024
- courtONTARIO SUPERIOR COURT OF JUSTICE (COMMERCIAL LIST)
- court file noBK-24-03162387-0031
- financial positionnote: Affidavit states Company has 'approximately $5.8 million in liabilities of which approximately $2 million is secured debt' based on the List of Creditors filed with the NOI (Exhibit G); no total assets figure provided in these pages. · page: 25 · as at: NOI filing date · basis: List of Creditors filed with the NOI (approximate figures per affidavit) · scope: Cancom Security Inc. (entity level) · currency: CAD · total liabilities: 5800000
- secured creditorsnote: Per Ontario PPSA Report (Exhibit H), Company has 8 secured creditors total including TD Bank. The 7 secured creditors other than TD Bank - Toyota Credit Canada, Auto One Group Limited, Royal Bank of Canada, RCAP Leasing Inc., The Bank of Nova Scotia, TD Auto Finance (Canada) Inc., and Vault Credit Corporation - are characterized in the affidavit as equipment lenders or lessors; individual and aggregate amounts owing are not stated in the document. · page: 25 · as of: PPSA Report dated December 18, 2024 · debtor: Cancom Security Inc. · creditor: PPSA equipment financiers (PMSI class) · currency: CAD · security: Equipment/vehicle financing and leasing security (PPSA registrations), largely for vehicles used by Company employees performing security work
- secured creditorsnote: Deemed trust class - HST arrears. Affidavit states Company 'is also indebted to the CRA in the approximate amount of $2.8 million for HST' (approximation, no dated statement provided). Company's failure to keep current on CRA priority payables also cited as an Existing Default under TD's Forbearance Agreement. · page: 26 · amount: 2800000 · debtor: Cancom Security Inc. · creditor: Canada Revenue Agency (CRA) · currency: CAD
- secured creditorsnote: TD Bank is the Company's principal secured lender re: Credit Facilities (operating loan, committed reduced term facility, letter of credit) under Letter Agreements dated July 12, 2019, May 17, 2022 and March 7, 2024. Company in default (reporting covenants, borrowing base excess, DSCR); TD delivered demand letter and BIA s.244 notice on July 23, 2024 for $1,346,965.39 (as of July 22, 2024). Forbearance Agreement dated Sept 18, 2024 recites total indebtedness of $2,005,276.05 as of Sept 5, 2024 (principal+interest, exclusive of costs/legal fees), and Section 2.2(a) of that Agreement acknowledges $1,970,194.14 as of Sept 17, 2024 (Demand Operating Facility $1,630,756.15 + Business VISA Facility $47,021.00 + O/S Letter of Credit $292,416.99); demand operating line balance fluctuates daily. Affidavit sworn Dec 23, 2024 describes debt as 'approximately $1.9 million' (prose approximation). Security not discharged; Demands and BIA Notice not withdrawn per Forbearance Agreement. · page: 52 · as of: 2024-09-17 · amount: 1970194.14 · debtor: Cancom Security Inc. · creditor: The Toronto-Dominion Bank (TD Bank) · currency: CAD · security: General Security Agreement (GSA) - first charge on all present and after-acquired personal property (dated July 4, 2019); Assignment of Fire Insurance; Postponement and Assignment of Creditor's Claim by Ronald K Wells (CAD $170,000); Unlimited Guarantees of Advances executed by Ronald Keith Wells Jr. and Ronald Keith Wells Sr. (personal guarantors, related parties - officers of the company); Security Agreement for Specified Assets (first charge, 'to be obtained')