Ontario · Proposal
Fifth Report of the Proposal Trustee dated September 29, 2026
Court officer report · 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 filing16 verified
- unsecured creditorsnote: Trustee determined Accrued Vacation Pay ranks below the Deemed Trust Distribution; to be dealt with in the bankruptcies. Post-NOI accrued vacation pay of a further $3,763.24 is also owed by KelseyCo. · page: 8 · basis: Trustee's understanding of amounts the Companies owe; individual entitlements not yet determined; no employee has filed a proof of claim · amount: 36969.32 · debtor: 1382769 Ontario Limited (KelseyCo) · creditor: Former employees of KelseyCo - accrued vacation pay (pre-NOI) · currency: CAD
- unsecured creditorsnote: Trustee determined Accrued Vacation Pay ranks below the Deemed Trust Distribution; to be dealt with in the bankruptcies. Post-NOI accrued vacation pay of a further $832.52 is also owed by MontanaCo. · page: 9 · basis: Trustee's understanding of amounts the Companies owe; individual entitlements not yet determined; no employee has filed a proof of claim · amount: 50671.78 · debtor: 1622356 Ontario Limited (MontanaCo) · creditor: Former employees of MontanaCo - accrued vacation pay (pre-NOI) · currency: CAD
- unsecured creditorsnote: Deemed trust class (ITA s.227(4)/(4.1), CPP, EIA), preserved under BIA ss.86(3) and 67(3); ranks ahead of all claims against Net Proceeds other than the Administration Charge. Source Deductions principal for KelseyCo is $0.00. Proposed to be paid now as the Deemed Trust Distribution. · page: 11 · as of: 2026-05-19 · basis: CRA proof of claim dated May 19, 2026; Trustee reviewed and has no reason to dispute; no claims process conducted · amount: 133793.12 · debtor: 1622356 Ontario Limited (MontanaCo) · creditor: Canada Revenue Agency (CRA) - Source Deductions principal (deemed trust) · currency: CAD
- unsecured creditorsnote: Stated total of the s.60(1.1) claim: MontanaCo $216,507.63 plus KelseyCo $25.61. Of this, MontanaCo Source Deductions principal $133,793.12 is deemed trust (listed separately); remaining penalties and interest of $82,740.12 (MontanaCo $82,714.51; KelseyCo $25.61) are not subject to the deemed trust and rank unsecured pari passu under BIA s.136. The $216,533.24 figure includes the deemed-trust principal and so overlaps the separate entry above. · page: 11 · as of: 2026-05-19 · basis: CRA proofs of claim (KelseyCo dated June 12, 2026; MontanaCo dated May 19, 2026) · amount: 216533.24 · debtor: MontanaCo ($216,507.63) and KelseyCo ($25.61) · creditor: CRA - Source Deductions penalties and interest / BIA s.60(1.1) claim · currency: CAD
- unsecured creditorsnote: Stated 'unsecured claims (all amounts other than Source Deductions - principal)' total $3,492,296.08. Components: HST principal $2,515,237.62 and HST penalties/interest $698,635.21 (KelseyCo $926,043.73 + $210,944.86; MontanaCo $1,589,193.89 + $487,690.35); corporate income tax principal $122,290.00 and penalties/interest $73,014.43 (MontanaCo $122,290.00 + $73,003.09; KelseyCo $11.34); information return penalties $378.70 (KelseyCo); and Source Deductions penalties and interest $82,740.12. HST deemed trust does not apply under the BIA (ss.86(1)). Total CRA Claims $3,626,089.20 (KelseyCo $1,137,404.24; MontanaCo $2,488,684.96). Amounts may be revised: CRA advises certain T2 and GST/HST returns of both Companies have not been received and the Companies do not intend to file them. · page: 11 · as of: 2026-06-12 · basis: CRA proofs of claim filed as unsecured (KelseyCo dated June 12, 2026; MontanaCo dated May 19, 2026); Trustee has no reason to dispute · amount: 3492296.08 · debtor: KelseyCo ($1,137,404.24) and MontanaCo ($2,354,891.84) · creditor: CRA - HST and corporate income tax (unsecured balance) · currency: CAD
- secured creditorsnote: No secured claim amount stated and no proof of claim filed. Trustee will evaluate any secured claims in the bankruptcies, including obtaining an independent opinion of counsel on validity and enforceability of the security. Validity/enforceability not yet confirmed (opinion pending). Franchisor is also the franchisor under the restaurants' franchise agreements; Trustee understands all amounts due to the Franchisor were paid at or before Closing. · page: 13 · debtor: KelseyCo and MontanaCo · creditor: Franchisor (holds PPSA registrations against each of the Companies) · currency: CAD · security: PPSA (Ontario) registrations against each of the Companies, as described in the First Report
- cash on handnote: Balance of the Sale Proceeds ($2,300,000 total) after payment of $126,980.74 to counsel to the Companies, to be transferred by Miller Thomson LLP to the Trustee's estate trust accounts. Net Proceeds before interest estimated at approximately $2,051,475.62 including the estimated unused portion of the Priority Payables ($151,475.62). The Companies' own bank balances are not stated. · amount: 2058019.26 · currency: CAD
- closing confirmedscope: the Purchased Assets under the Stalking Horse APA · outcome: completed · effective: 2026-09-14 · purchaser: 15870437 Canada Inc. · date basis: stated · effective time: 4:15P.M. · approval order date: 2026-09-09
- operational summaryThe sale transaction closed September 14, 2026 and the Companies no longer carry on business. Their remaining property consists principally of the sale proceeds, and the Trustee seeks a distribution to CRA and termination of the proposal period so the Companies are deemed bankrupt.
- professional feesnote: Includes HST. Components: AGI unpaid balance of previously approved fees $30,670.21; AGI invoices 9464 and 9465 (Sept 2-27, 2026) $36,808.58 (fees $32,571.50 plus disbursements $2.46 plus HST $4,234.62); Miller Thomson invoices $9,740.60 and $4,774.25; Fee Accruals $39,550.00 (Trustee $22,600; Miller Thomson $16,950). Separately, $126,980.74 was already paid to the Companies' counsel (PRHM) from the Priority Payables. · party: Albert Gelman Inc. (Trustee) and Miller Thomson LLP (Trustee's counsel) · amount: 121543.64 · period: unpaid fees incl. HST: Trustee and counsel invoices to September 27, 2026, plus Fee Accruals to completion of the NOI mandate · currency: CAD
- purchaser7055579 Canada Inc.
- 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: CRA (Deemed Trust Distribution - MontanaCo) · creditor name: CRA · interim final: unstated · claims qualifier: unstated · stated on: 2026-09-29 · table missing:
- report date29 September 2026
- report noFifth Report
- sale outcometext: The Transaction under the Stalking Horse APA closed on September 14, 2026 and the Purchased Assets vested in the Purchaser upon delivery of the Trustee's Certificate. · scope: whole_business · status: closed
- stalking horse7055579 Canada Inc.