British Columbia · CCAA

The purpose of this second report (the "Second Report") of the Monitor is to provide information to the Supreme Court of British Columbia in respect of the following: a) a detailed background of the Applicants, including a discussion pertaining to: • a brief overview of the telecommunication industry in Canada, . a brief history of the TNW Group, . the corporate structure of the TNW Group, . management of the TNW Group; . the operations of the Applicants, o cash management; • the relationship between TNW Networks (defined below) and the Applicants, and . the assets and liabilities of the Applicants, b) the activities of the Monitor in accordance with the provisions of the ARIO, the EYI Order and statutory obligations under the CCAA, c) discussions with key stakeholders and/or legal counsel to key stakeholders including, inter alia : Bond Capital Fund V Limited Partnership (" Bond" or the "DIP Lender "), Bank of Nova Scotia ("BNS"), Telus, BCE Group, Cascade Divide Enterprises ("Cascade "), SBA Canada ULC ("SBA" ); and Landlords, d) the proposed Solicitation Plan and the proposed Solicitation Process, e) the claims process as more fully described in the draft claims process order (the "Claims Process Order") attached to the motion materials for the January 20th hearing date, f) the Applicants cash flow forecast, including: an update with regard to the Applicants' operating cash flow, including the budget to actual variance analysis of the cash flows of the Applicants for the period of December 17, 2016 to January 6, 2017 (the "Reporting Period"), and the Applicants' revised cash flow forecast for the period of January 7, 2017 to June 2, 2017 (the "Forecast Period") g) the Applicants preliminary reorganization plan; h) the basis and requirement for the Applicant's request for an extension of the Stay Period to May 31, 2017 (the "Extended Stay Period" and i) the Monitor's conclusions and recommendations

Court officer report · 16 January 2017