New Brunswick · Receivership (court-appointed)
The First Report has been prepared by the Receiver to report to the Court on matters relating to activities of the Receiver as it pertains to certain property and to provide information to assist the Court in considering the Receiver’s application for: a. Approval of the proposed Auction Proposal (as defined therein); b. Approval of the proposed Tender Sale Process (as defined therein); and c. Approval of the activities of the Receiver as described in the First Report
Court officer report · 12 May 2025
What we verified from this filing3 verified
- secured creditorsnote: Original advances of $7.2 million (facility/advance amount, not balance). Demand letter dated 14 August 2024 stated amount owing 'approximately $7.6M, plus interest and costs' as at date of demand; same approximate figure repeated as of NOI Filing Date (26 August 2024) and per Coastal's books and records. · page: 7 · as of: NOI filing date · amount: 7600000 · debtor: Coastal Shell Products Inc. · creditor: Business Development Bank of Canada (BDC) · currency: CAD · security: General security agreement, mortgages, and certain guarantees; subject to a Priority Agreement with CIBC
- secured creditorsnote: Amount owed approximately $0.6 million per Coastal's books and records as of NOI Filing Date. CIBC's security and debt were subsequently assigned (per Assignment dated 25 October 2024) to 760696 N.B. Inc., a company related to Coastal/its shareholders (12327554 Canada Inc. is a co-respondent). · page: 7 · as of: NOI filing date · amount: 600000 · debtor: Coastal Shell Products Inc. · creditor: Canadian Imperial Bank of Commerce (CIBC) · currency: CAD · security: Operating line of credit supported by a general security agreement (the 'CIBC Security'), subject to a Priority Agreement with BDC
- secured creditorsnote: Related party to Coastal (assignee of debtor's own bank's security executed during NOI period). Receiver's counsel concluded the Assignment appears valid and enforceable but has NOT concluded review of the Bill of Sale, and holds an initial view that the Bill of Sale is NOT valid, having been completed during the NOI process without Court approval. Amount owed stated as 'approximately $0.6 million' per Coastal's books and records. · page: 11 · as of: Assignment date (25 October 2024) · amount: 600000 · debtor: Coastal Shell Products Inc. · creditor: 760696 N.B. Inc. · currency: CAD · security: Assigned CIBC Security (general security agreement) per Assignment of debt and security dated 25 October 2024; also purported Bill of Sale (also dated 25 October 2024) conveying assets subject to CIBC's security