British Columbia · Receivership (court-appointed)
Second Report of the Receiver – March 7 2017
Court officer report · 7 March 2017
A plain-language read of this filing opens with a subscription.
What we verified from this filing5 verified
- financial positionnote: Fuller Landau report states the book value of KGIC's assets was less than $10 million as at the SENR date; SENR (Exhibit C) breaks assets down by category (cash, receivables, prepaids, intangibles, capital assets, rent deposits, inventory) without a clearly reconcilable total in the extracted table. · as at: 2016-08-31 · basis: book value; Schedule of Estimated Net Realization prepared by BDO based on KGIC's non-consolidated financial records · scope: KGIC Inc. (non-consolidated) · currency: CAD
- operational summaryKGIC's schools continued to face severe negative cash flow, requiring Receiver's Certificate borrowing to cover payroll and rent, with regulators warning that program cancellations could force campus closures absent an urgent resolution.
- recovery outcomeentries: basis: liquidation_alternative · quote: The SENR concluded that in a liquidation, the first secured creditor, then the Bank of Montreal ("BMO"), would suffer a shortfall of between $12.3 and 12.9 million. · pct of: unstated · outcome: shortfall · class key: secured · stated by: receiver · amount low: 12300000 · amount high: 12900000 · class label: Bank of Montreal (secured creditor) · creditor name: Bank of Montreal · interim final: unstated · claims qualifier: unstated; basis: estimated · quote: In fact, BMO was projected to suffer a loss in excess of its entire loan balance, which was then $12.1 million. · pct of: unstated · outcome: shortfall · class key: secured · stated by: receiver · class label: Bank of Montreal (secured creditor) · claims amount: 12100000 · creditor name: Bank of Montreal · interim final: unstated · claims qualifier: unstated; basis: estimated · quote: It is apparent that without an immediate solution, the operations of KGIC will be shutdown and there will be a significant shortfall to CIBT, and no recovery for other creditors. · pct of: unstated · outcome: shortfall · class key: secured · stated by: receiver · class label: CIBT · creditor name: CIBT · interim final: unstated · claims qualifier: unstated; basis: estimated · quote: It is apparent that without an immediate solution, the operations of KGIC will be shutdown and there will be a significant shortfall to CIBT, and no recovery for other creditors. · pct of: unstated · outcome: nil · stated by: receiver · class label: other creditors · interim final: unstated · claims qualifier: unstated; basis: estimated · quote: As this schedule of estimated net rea t tt is t t tt s ture holders will suffer a shortfall for the entirety of their claim against the Company. · pct of: unstated · outcome: shortfall · class key: secured · stated by: receiver · class label: debenture holders · interim final: unstated · claims qualifier: unstated · stated on: 2017-03-07 · table missing:
- report date7 March 2017
- report noSecond Report