Ontario · Receivership (court-appointed)
Motion Record - Receiver (BDO Canada Limited) - Dated June 11, 2024
Application / notice of application · 11 June 2024
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 filing11 verified
- secured creditorsnote: No balance stated. Debtors continue to be indebted to RBC for a corporate credit card and certain leases; proceeds of BMO's Loans were used in part to previously repay RBC. · page: 31 · debtor: North Shore Logistics Inc. · creditor: Royal Bank of Canada (RBC) · currency: CAD · security: Registered security interest against all property, assets and undertakings of North Shore Logistics Inc.; registration continues to be in effect
- secured creditorsnote: No balances stated. Wells Fargo and BVD Equipment Finance Inc. specifically identified as having registered security against certain Vehicles but not having filed proofs of claim despite being asked to do so. · page: 32 · debtor: True North Freight Solutions Inc. / North Shore Logistics Inc. · creditor: PPSA equipment financiers (PMSI class) · currency: CAD · security: PPSA registrations against specific serialized Vehicles (trucks/trailers). Registrants include, among others: Wells Fargo Equipment Finance Company, BVD Equipment Finance Inc./BVD Capital Corporation, Meridian OneCap Credit Corp., TFG Financial Corporation, Coast Capital Auto & Equipment Finance, VSF Canada Inc., R&S Trailer Leasing (Breadner Trailers), Daimler Truck Financial Services, Mitsubishi HC Capital Canada Leasing, LCB Capital/LBEL, CWB National Leasing, BlueShore Transport Finance, Canadian Dealer Lease Services, BMW Canada, Mercedes-Benz Financial Services, Bodkin/Bennington Financial, De Lage Landen Financial Services, Canadian Western Banking Leasing, Toyota Credit Canada, Ford Credit Canada, CLE Capital, Concentra Bank, PNC Vendor Finance Corporation
- secured creditorsnote: Has not filed a proof of claim despite being asked to do so; no amount stated · page: 32 · debtor: True North Freight Solutions Inc. / North Shore Logistics Inc. · creditor: Popular Tire Sales & Services Inc. · currency: CAD · security: Repair and Storage Liens Act (Ontario) (RSLA) claim against certain Vehicles
- secured creditorsnote: Has not filed a proof of claim despite being asked to do so; no amount stated · page: 32 · debtor: True North Freight Solutions Inc. / North Shore Logistics Inc. · creditor: New Millenium Tire Centre · currency: CAD · security: Repair and Storage Liens Act (Ontario) (RSLA) claim against certain Vehicles
- secured creditorsnote: No balance stated in these pages. 8317 was two months in arrears on its BDC mortgage payments as of the Pre-Filing Report (May 10, 2024). · page: 69 · debtor: 1000088317 Ontario Inc. ('8317') · creditor: Business Development Bank of Canada (BDC) · currency: CAD · security: First-ranking security on 8317's assets, including the Real Property (mortgage); also holds a subordinate security interest in the True North/North Shore assets relative to BMO, per priority agreement dated February 23, 2023
- secured creditorsnote: Senior secured creditor. Balance outstanding under the 'Loans' per BMO demand letters dated April 16, 2024, sent to True North and to North Shore, 8317, Bal and Randhawa as guarantors (personal guarantees by Bal and Randhawa; corporate guarantees by North Shore and 8317). Per priority agreement dated February 23, 2023 with BDC, BMO holds first-ranking security on True North/North Shore assets and a second-ranking (subordinate to BDC) security interest on 8317's assets, including the Real Property. · page: 69 · as of: 2024-04-09 · amount: 20017847 · debtor: True North Freight Solutions Inc. · creditor: Bank of Montreal (BMO) · currency: CAD · security: General security agreements from True North, North Shore and 1000088317 Ontario Inc. ('8317'); mortgage against the Real Property. Credit Agreement dated January 13, 2022 provided facility limits (not balances) of: $13.0M demand revolving line of credit, two non-revolving term facilities totaling $7.5M, $1M treasury risk line, and corporate credit cards with limits totaling $300,000
- secured creditorsnote: Distinct capacity from BMO's Credit Agreement facilities; additional demand for repayment issued April 30, 2024 against North Shore as lessor and Mahan Singh Enterprises Inc. (MSEI) as limited guarantor (related party, common director Jagdeep Randhawa) · page: 70 · as of: 2024-04-26 · amount: 206025.57 · debtor: North Shore Logistics Inc. (formerly Kanman Logistics Inc.) · creditor: Bank of Montreal (BMO), as lessor - North Shore Lease Agreement · currency: CAD · security: Specific equipment lease agreement entered into between BMO and Kanman Logistics Inc. (North Shore's prior name)
- secured creditorsnote: Deemed trust class / priority payable (income tax arrears); approximate figure per Management/Golden Goose · page: 72 · amount: 1777426.92 · debtor: True North Freight Solutions Inc. · creditor: Canada Revenue Agency (CRA) · currency: CAD
- secured creditorsnote: Deemed trust class (HST arrears). CRA conducted an HST audit and assessed HST arrears for the period July 2020 to April 2022. CRA is separately reviewing True North's HST remittances for May 2022-November 2023, which Management believes will yield a refund (~$5.3 million) exceeding these arrears (unconfirmed). · page: 72 · amount: 1956759.04 · debtor: True North Freight Solutions Inc. · creditor: Canada Revenue Agency (CRA) · currency: CAD
- secured creditorsnote: Deemed trust class (source deduction arrears); approximate figure per Management/Golden Goose · page: 72 · amount: 793233.79 · debtor: True North Freight Solutions Inc. · creditor: Canada Revenue Agency (CRA) · currency: CAD
- secured creditorsnote: CRA statements for North Shore were not provided; status of North Shore's priority payables to CRA is not known (cannot advise). Debtors' unaudited accounting records show source deductions owing of approximately $90,000. · page: 73 · debtor: North Shore Logistics Inc. · creditor: Canada Revenue Agency (CRA) · currency: CAD