Alberta · Receivership (court-appointed)
Affidavit of the Applicant (Royal Bank of Canada)
Affidavit · 4 August 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 filing9 verified
- financial positionnote: Affidavit states 2025 liabilities exceeded assets; combined 2025 net loss (2,455,237) and retained earnings (989,150) negative. Entity-level 2025 figures per the affidavit's table (page 10): Chinook assets 8,960,726 / liabilities 14,909,249; PMI assets 5,757,338 / liabilities 3,017,483. GIFI Schedule 100 totals as at 2025-08-31 in the exhibited T2 returns differ: Chinook total assets 9,937,821 / total liabilities 14,909,250 (page 329); PMI total assets 6,107,338 / total liabilities 3,367,481 (page 404); Pro-Line total assets 742,479 / total liabilities 116,155 (page 476). Fiscal year end is August 31, 2025. All amounts Canadian dollars per the affidavit. · page: 9 · as at: 2025-08-31 · basis: Draft 2025 combined financial statements of the Debtors and Pro-Line Sask, as summarized in the affidavit of Jay Dee Hall (draft; notice to reader/compilation-level, unaudited) · scope: Combined: Chinook Farm Innovations Inc., PMI Corp., Pro-Line Manufacturing Inc. and Pro-Line Manufacturing (Sask) Inc. (dissolved April 7, 2025) · currency: CAD · total assets: 11769973 · total liabilities: 12553413
- secured creditorsnote: Deemed-trust class: unremitted employee source deductions - quasi-governmental claim that ranks ahead of ordinary security. Chinook's 2025 financial statements state $640,877 owing as at August 31, 2025; per GlassRatner (on the deponent's information and belief) the amount had increased to $872,393.53 as of July 29, 2026 and is increasing by approximately $35,000 per month, as the Debtors are paying only net wages and not remitting source deductions. · page: 10 · as of: 2026-07-29 · amount: 872393.53 · debtor: Chinook Farm Innovations Inc. · creditor: Canada Revenue Agency · currency: CAD
- secured creditorsnote: The 'Chinook Indebtedness': $3,083,715 as of August 3, 2026, plus further accruing interest, costs and expenses (solicitor-and-own-client full indemnity). Earlier exact dated balance in the July 2, 2026 demand letter: $2,981,988.07 as of June 30, 2026 ($2,511,941.00 revolving facility; $265,075.14 non-revolving term facility; $88,819.18 credit card facility). Chinook is additionally liable for the PMI Indebtedness under its guarantee of PMI's debt (limit $3,000,000) - not added here. Guarantees supporting the Chinook debt: PMI up to $3,900,000 (Aug 8, 2022); Pro-Line up to $3,900,000 (Aug 8, 2022); personal guarantees exist from two individuals up to $2,000,000 (Aug 11, 2022; named in the demand letter as Sid Doornbos and Karen Doornbos). Demands and s. 244 BIA notices delivered July 2, 2026, expired July 12, 2026; debtors consented to enforcement July 28, 2026. · page: 12 · as of: 2026-08-03 · amount: 3083715 · debtor: Chinook Farm Innovations Inc. · creditor: Royal Bank of Canada · currency: CAD · security: General security agreement dated August 8, 2022 over all present and after-acquired personal property, perfected by Alberta PPR registration; the PPR search shows RBC as first-ranking secured creditor against Chinook. Facility limits under the Chinook Credit Agreement (limits, not balances): $2,800,000 revolving demand facility; $350,000 non-revolving term facility; $500,000 revolving term loan; credit card to a maximum of $200,000.
- secured creditorsnote: The 'PMI Indebtedness': $2,334,163.79 as of August 3, 2026, plus accruing interest and costs. Earlier exact dated balance in the July 2, 2026 demand letter: $2,347,996.61 as of June 30, 2026 ($1,065,747.44 non-revolving facility #1 (overdraft); $1,282,249.17 non-revolving facility #2 (letters of guarantee)). PMI is additionally liable for the Chinook Indebtedness under its guarantee (limit $3,900,000) - not added here. Guarantees supporting the PMI debt: Chinook up to $3,000,000 (affidavit: granted by Chinook dated April 8, 2022; the demand letter attributes the same-dated $3,000,000 guarantee to Pro-Line); Pro-Line up to $855,000 (Nov 20, 2012) and up to $4,350,000 (Apr 18, 2013); Pro-Line Manufacturing (Sask) Inc. (dissolved April 7, 2025) up to $4,350,000 (May 7, 2013, per demand letter); personal guarantees by Sid and Karen Doornbos up to $2,000,000 (demand letter prints '$2,00,000', Apr 20, 2013). A revised demand and statutory notice for PMI issued July 28, 2026 correcting inadvertent errors. · page: 12 · as of: 2026-08-03 · amount: 2334163.79 · debtor: PMI Corp. · creditor: Royal Bank of Canada · currency: CAD · security: General security agreement - floating charge on land dated January 15, 2008; collateral mortgage dated January 22, 2013 in the registered principal amount of $4,000,000 (a registration ceiling, not a balance) charging the Lands (Plan 1221979, Block 1, Lot 4); RBC is first-ranking in the Alberta PPR against PMI and holds the first-ranking financial encumbrance on title. Facility amounts under the PMI Credit Agreement (facility amounts, not balances): $5,000 revolving demand facility; $1,531,412.13 revolving demand facility by way of letters of guarantee; $1,144,936.59 fixed rate term loan; credit card to a maximum of $25,000.
- secured creditorsnote: Pursuant to its guarantees, Pro-Line is indebted to RBC as of August 3, 2026 in the amount of the Chinook Indebtedness ($3,083,715) and the PMI Indebtedness ($2,334,163.79); the document states the components, not a single total, so they are not summed here. Guarantee limits: $3,900,000 re Chinook (Aug 8, 2022); $855,000 (Nov 20, 2012) and $4,350,000 (Apr 18, 2013) re PMI. · page: 13 · as of: 2026-08-03 · debtor: Pro-Line Manufacturing Inc. · creditor: Royal Bank of Canada · currency: CAD · security: General security agreement dated January 30, 1997 over all present and after-acquired personal property, perfected by Alberta PPR registration; the PPR search shows RBC as first-ranking secured creditor against Pro-Line.
- secured creditorsnote: Vendor take-back from the August 25, 2022 asset purchase of the Chinook Dairy Service business (original VTB $2.5 million - an original advance, not a balance; total purchase price $6 million with $3.5 million cash funded by RBC). Note payable in monthly payments of $22,038 including interest at 5%, due November 2028; balance $2,328,941 per financial statements for the year ended August 31, 2025 (2024: $2,366,439). The trial balance also shows a separate 'CDS Payable' of $665,320.21 within accounts payable (page 382). · page: 315 · as of: 2025-08-31 · amount: 2328941 · debtor: Chinook Farm Innovations Inc. · creditor: Chinook Dairy Service Ltd. · currency: CAD · security: Note payable subject to security including a general security agreement and security interest on all present and after-acquired property; unlimited guarantee from a director of the Company, unlimited guarantee from Pro-Line Manufacturing Inc. and unlimited guarantee from PMI Corp.
- unsecured creditorsnote: Related party under common control; advances are unsecured, non-interest bearing, with no fixed terms of repayment. · page: 339 · as of: 2025-08-31 · basis: Chinook FY2025 financial statement Note 11 - Advance from related party · amount: 455993 · debtor: Chinook Farm Innovations Inc. · creditor: Pro-Line Manufacturing Inc. · currency: CAD
- unsecured creditorsnote: Advance is unsecured, non-interest bearing, with no fixed terms of repayment; the trial balance identifies the individual as Curtis Doornbos (related party). · page: 339 · as of: 2025-08-31 · basis: Chinook FY2025 financial statement Note 11 - Advance from related party · amount: 350000 · debtor: Chinook Farm Innovations Inc. · creditor: Shareholder of the corporate shareholder · currency: CAD
- unsecured creditorsnote: Related party - corporate shareholder of Chinook. · page: 383 · as of: 2025-08-31 · basis: Chinook FY2025 financial statement Note 10 ('Amounts owing to the corporate shareholder are unsecured, non-interest bearing, and have no fixed terms of repayment'); amount per the year-end trial balance and grouping schedule ('Due to (from) corporate') · amount: 3930510.23 · debtor: Chinook Farm Innovations Inc. · creditor: PMI Corp. (corporate shareholder) · currency: CAD