Ontario · Receivership (court-appointed)
Application Record – Applicants 22-MAY-2025
Application / notice of application · 22 May 2025
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 filing14 verified
- applicantTHE TORONTO-DOMINION BANK
- commencement date22 May 2025
- courtONTARIO SUPERIOR COURT OF JUSTICE (COMMERCIAL LIST)
- court file noCV-25-00743600-00CL
- statutory basisSection 243(1) of the Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, as amended, and Section 101 of the Courts of Justice Act, R.S.O. 1990, c. C.43, as amended
- appointeeAlbert Gelman Inc.
- appointee roleProposed Receiver
- secured creditorsnote: Served via courier per Service List dated May 22, 2025, consistent with treatment as a prior registered secured party; amount not stated in excerpted pages. · page: 4 · debtor: Daymak Inc. · creditor: The Bank of Nova Scotia · currency: CAD · security: Possible prior registered security interest; TD's Term Loan (Facility 2) was stated to 'refinance a portion of the Debtor's prior Bank of Nova Scotia debt,' implying only partial discharge of BNS's original claim; extent/status of any remaining BNS security not detailed in excerpted pages.
- secured creditorsnote: Served via courier per Service List dated May 22, 2025, consistent with treatment as a prior registered secured party; amount not stated in excerpted pages. · page: 4 · debtor: Daymak Inc. · creditor: Royal Bank of Canada · currency: CAD · security: Possible prior registered security interest; nature/amount not detailed in excerpted pages.
- secured creditorsnote: Served via courier (as distinct from email service on counsel/regulators) per the Service List dated May 22, 2025, consistent with treatment as parties holding registered PPSA security interests against the Debtor; amounts not stated in excerpted pages. · page: 4 · debtor: Daymak Inc. · creditor: PPSA equipment financiers (PMSI class) - Meridian OneCap Credit Corp., Vault Credit Corporation, Xpedite Leasing Inc. · currency: CAD · security: PPSA registrations against Debtor's assets/equipment; specific registration numbers, collateral description, and amounts not stated in the excerpted pages (referenced generally via Exhibit 'G' - Ontario PPSA search dated April 30, 2025, not included in provided pages).
- financial positionnote: TD's Indebtedness of $16,008,449.73 CAD and $506.99 USD (as of April 7, 2025, exclusive of enforcement costs) is stated to represent approximately 72% of this total indebtedness figure, per the Bank's affidavit calculation; no balance sheet or asset figures are provided in the excerpted pages. · page: 39 · as at: 2025-04-25 · basis: List of Debtor's creditors dated April 25, 2025, provided in connection with the Debtor's NOI filing (approximate total, as characterized by the Bank's affidavit) · scope: Daymak Inc. (entity) - total stated indebtedness to all creditors · currency: CAD · total liabilities: 22257265
- unsecured creditorsnote: Related party: sole shareholder of the Debtor, under common control (Mr. Aldo Baiocchi) with the Debtor. Per Section 13 of the Holdings Guarantee (Dec 19, 2022), Holdings postponed and assigned all present/future debts owed to it by the Debtor in favour of the Bank - i.e., this claim is subordinated/cession-of-rank to TD's security. Balance history: $3,064,279 per Dec 31, 2024 trial balance; only $550,264 per Jan 31, 2025 trial balance (an apparent $2,514,015 repayment the Bank alleges may have breached the subordination); $3,088,206.86 per the April 24, 2025 trial balance provided April 29, 2025. · page: 40 · as of: 2025-04-24 · basis: Debtor's internal trial balance (management-prepared, unaudited) as provided to the Bank · amount: 3088206.86 · debtor: Daymak Inc. · creditor: Daymak Holdings Limited · currency: CAD
- secured creditorsnote: Deemed trust class - unremitted source deductions/HST. Figure per CRA's own statement of arrears dated March 18, 2025. Other reported figures for the same obligation: $882,996 per Debtor's February 28, 2025 trial balance/borrowing base reporting (cited in TD's March 11, 2025 default notice and April 15, 2025 demand letter) - Daymak disputed the HST component of this figure ('We do not have HST in arrears'); and approximately $930,000 per an April 24, 2025 trial balance (a ~$220,000 one-month increase); and 'approx. $710,000' cited in a May 9, 2025 email regarding proposed Proposal terms. · page: 42 · as of: 2025-03-18 · amount: 709928.29 · debtor: Daymak Inc. · creditor: Canada Revenue Agency · currency: CAD
- secured creditorsnote: Exact dated payout balance per Demand Letter and NITES dated April 15, 2025 (indebtedness stated 'as at April 7, 2025'), itemized as: Operating Loan $7,591,946.73; Operating Loan (USD) $506.99 USD; Term Loan $6,066,833.92; Term Loan $2,115,662.18; three Visa accounts totalling ~$102,026 (2060: $63,693.35; other cards: $19,701.91, $9,723.70, $8,907.31); Visa contingency hold $110,000; Albert Gelman Inc. professional fees $21,980.63. The Affidavit (paras 13-14) separately reports a rounded prose total of $15,774,442.83 CAD and $506.99 USD for the same date, covering only the three core Facilities plus professional fees (a lower, non-itemized figure). Per the Debtor's April 25, 2025 NOI creditor list, this Indebtedness represents approximately 72% of the Debtor's total stated indebtedness of ~$22,257,265, making TD the fulcrum creditor. · page: 224 · as of: 2025-04-07 · amount: 16008449.73 · debtor: Daymak Inc. · creditor: The Toronto-Dominion Bank · currency: CAD · security: General Security Agreement (GSA) dated December 19, 2022 - counsel-confirmed perfected, first-ranking priority charge over all present and after-acquired personal property, undertakings and assets of the Debtor, subject to prior registered security interests. Also backed by: (a) Corporate Guarantees dated December 19, 2022 from Daymak International Inc., Daymak Holdings Limited, and Daymak USA, Inc. (joint and several); (b) an Individual Guarantee dated December 19, 2022 from the Debtor's principal, capped at $500,000 plus interest/enforcement costs (personal guarantor - individual named only in this note per BIA reporting convention); (c) an Investment Property Pledge Agreement (Dec 19, 2022) with Daymak Holdings Limited restricting dividend/distribution payments post-default.