Ontario · Proposal
Motion Record of the Proposal Trustee (for motion returnable October 5, 2026)
Application / notice of application · 29 September 2026
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 filing10 verified
- secured creditorsnote: Maximum amount of the charge, not an outstanding balance; ranks ahead of all trusts. Professional (post-filing) charge, not a pre-filing creditor. $126,980.74 already paid to PRHM from sale proceeds; unpaid Trustee/counsel fees ($121,543.64 incl. fee accruals) to be paid from Priority Payables. · page: 7 · as of: 2026-09-09 · amount: 300000 · debtor: KelseyCo and MontanaCo · creditor: Administration Charge beneficiaries (Albert Gelman Inc., Miller Thomson LLP, Perley-Robertson, Hill & McDougall LLP) · currency: CAD · security: Court-ordered Administration Charge over present and future property, originally $200,000 (July 13, 2026), increased to $300,000 maximum (September 9, 2026)
- secured creditorsnote: No amount stated. Trustee understands the Franchisor is 'not owed any money' and that all amounts due to it were paid at or before Closing; the Franchisor has not filed a proof of claim. Any secured claim will be evaluated in the bankruptcies, including an independent opinion of counsel on validity and enforceability. Trustee anticipates funds will remain after payment of any secured claims. · page: 9 · as of: 2026-09-27 · debtor: KelseyCo and MontanaCo (registrations against each of the Companies) · creditor: 1382769 Ontario Limited / 1622356 Ontario Limited – Franchisor (Recipe Unlimited Corporation, sole PPSA registrant) · currency: CAD · security: PPSA (Ontario) registrations against each Company; updated PPSA searches dated September 27, 2026 (Appendix E)
- unsecured creditorsnote: Pre-NOI accrued vacation pay; ranks below the Deemed Trust Distribution and will be addressed in the bankruptcies. A further $3,763.24 of post-NOI accrued vacation pay is owed to KelseyCo former employees. · page: 10 · as of: 2026-05-01 · basis: Trustee's understanding (no proofs of claim filed by employees); individual entitlements still to be determined · amount: 36969.32 · debtor: KelseyCo · creditor: Former employees of KelseyCo – accrued vacation pay (pre-NOI) · currency: CAD
- unsecured creditorsnote: Post-NOI accrued vacation pay; to be dealt with in the bankruptcy. · page: 10 · basis: Trustee's understanding; individual entitlements to be determined · amount: 3763.24 · debtor: KelseyCo · creditor: Former employees of KelseyCo – accrued vacation pay (post-NOI) · currency: CAD
- unsecured creditorsnote: Pre-NOI accrued vacation pay; ranks below the Deemed Trust Distribution and will be addressed in the bankruptcies. · page: 10 · as of: 2026-05-01 · basis: Trustee's understanding (no proofs of claim filed by employees); individual entitlements still to be determined · amount: 50671.78 · debtor: MontanaCo · creditor: Former employees of MontanaCo – accrued vacation pay (pre-NOI) · currency: CAD
- unsecured creditorsnote: Post-NOI accrued vacation pay; to be dealt with in the bankruptcy. · page: 10 · basis: Trustee's understanding; individual entitlements to be determined · amount: 832.52 · debtor: MontanaCo · creditor: Former employees of MontanaCo – accrued vacation pay (post-NOI) · currency: CAD
- unsecured creditorsnote: Components: HST principal $926,043.73; HST penalties and interest $210,944.86; corp. income tax penalties and interest $11.34; information return penalties $378.70; source deduction penalties/interest $25.61. CRA states certain T2 and GST/HST returns not filed; claim may be revised once processed. Trustee has no reason to dispute. Ranks pari passu with other unsecured creditors. · page: 26 · as of: 2026-06-12 · basis: CRA proof of claim dated June 12, 2026, filed as unsecured; total $1,137,404.24 comprising unsecured $1,137,378.63 and BIA s. 60(1.1) claim of $25.61 · amount: 1137404.24 · debtor: KelseyCo (1382769 Ontario Limited) · creditor: Canada Revenue Agency – unsecured claim (HST, corporate income tax, penalties and interest, information return penalties) · currency: CAD
- unsecured creditorsnote: Components: HST principal $1,589,193.89; HST penalties and interest $487,690.35; corp. income tax principal $122,290.00; corp. income tax penalties and interest $73,003.09; source deduction penalties and interest $82,714.51. Outstanding returns not filed; claim may be revised. Trustee has no reason to dispute. · page: 27 · as of: 2026-05-19 · basis: CRA proof of claim dated May 19, 2026; total claim $2,488,684.96 comprising unsecured $2,272,177.33 and BIA s. 60(1.1) claim of $216,507.63. The $2,354,891.84 is all amounts other than source deductions principal ($133,793.12), which is the deemed trust shown under secured entries · amount: 2354891.84 · debtor: MontanaCo (1622356 Ontario Limited) · creditor: Canada Revenue Agency – unsecured claim (HST, corporate income tax, penalties and interest) · currency: CAD
- secured creditorsnote: Deemed trust (quasi-governmental) claim per CRA proof of claim dated May 19, 2026; ranks ahead of all other claims against the Net Proceeds other than amounts secured by the Administration Charge. KelseyCo owes $0.00 source deductions principal (no deemed trust). Penalties and interest on source deductions ($82,714.51 MontanaCo; $25.61 KelseyCo) are not covered by the deemed trust. CRA does not oppose the motion. · page: 28 · as of: 2026-05-19 · amount: 133793.12 · debtor: MontanaCo (1622356 Ontario Limited) · creditor: Canada Revenue Agency – deemed trust (source deductions principal) · currency: CAD · security: Deemed trust under ITA ss. 227(4)/(4.1), CPP ss. 23(3)/(4), EIA ss. 86(2)/(2.1); preserved by BIA s. 86(3) / s. 67(3)
- recovery outcomeentries: basis: unstated · quote: | Less: Deemed Trust Distribution to CRA - MontanaCo | (133,793.12) | · pct of: unstated · outcome: distribution · class key: deemed_trust · stated by: proposal_trustee · amount low: 133793.12 · amount high: 133793.12 · class label: Canada Revenue Agency (Deemed Trust Distribution - MontanaCo) · creditor name: Canada Revenue Agency · interim final: unstated · conditional on: subject to the Distribution and Bankruptcy Order being granted · claims qualifier: unstated · stated on: 2026-09-29 · table missing: