Ontario · Bankruptcy
Trustee's Preliminary Report
Court officer report · 13 December 2022
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 filing13 verified
- appointeeMNP Ltd.
- appointee rolelicensed insolvency trustee
- commencement date25 November 2022
- court file no31-2887950
- proceeding typebia_bankruptcy
- provinceOntario
- statutory basissubsection 102(4) of the BIA
- financial positionnote: Total liabilities per SOA = secured $159,822.86 + preferred nil + unsecured $3,435,727.75 = $3,595,550.61 (document's own stated total, not computed by extractor). A separate total of $837,090.21 is given for 'Claims as Filed' (proofs of claim received/accepted for voting as of Dec 13, 2022), comprising secured $302,671.10 + preferred nil + unsecured $534,419.11 - this is a distinct, lower figure representing filed proofs, not the SOA-reported liabilities. Asset values reported: Deposits in Financial Institutions $7,821.86; Inventory valued at $2,000 on SOA; Machinery/Equipment net book value ~$428,000, valued at $150,000 on SOA (appraiser indicates liquidation value significantly lower, pending final appraisal); Leasehold Improvements net book value ~$1.1 million, valued at $1 on SOA (confirmed no value by appraiser). No stated total assets figure in document. · page: 3 · basis: Statement of Affairs (SOA), sworn by Company; not reviewed or audited by Trustee · scope: 10135739 Canada Inc. (single entity - the bankrupt estate) · currency: CAD · total liabilities: 3595550.61
- secured creditorsnote: SOA shows secured claim amount of $159,822.86 representing estimated value of security, with balance treated as unsecured; total indebtedness owing to RBC approximately $621,587.18 (plus ongoing interest and costs). Claims as filed show secured claims of $302,671.10. Opinion on validity/enforceability of security pending (not yet confirmed) at time of report; distributions contingent on this Opinion. · page: 3 · as of: Date of Bankruptcy · amount: 621587.18 · debtor: 10135739 Canada Inc. · creditor: Royal Bank of Canada (RBC) · currency: CAD · security: Security interest over all assets, equipment, and inventory of the Company
- unsecured creditorsnote: Document names no individual unsecured creditors in the aggregate figure, but states unsecured creditors include, among other things: (i) landlord, (ii) Groupe Evoluco Inc. (EVI), (iii) unsecured portion of RBC's claim, and (iv) termination pay owed to former employees (potentially eligible for WEPP). Claims as filed (proofs of claim) total $534,419.11 as of December 13, 2022 - this is a different, lower figure representing only claims submitted and accepted for voting purposes. · page: 3 · as of: Statement of Affairs · basis: Statement of Affairs as reported · amount: 3435727.75 · debtor: 10135739 Canada Inc. · creditor: Unsecured creditors (aggregate as reported on SOA) · currency: CAD
- unsecured creditorsnote: SOA and claims as filed both show 'Nil' for preferred claims. · page: 3 · as of: Statement of Affairs · basis: Statement of Affairs as reported · amount: 0 · debtor: 10135739 Canada Inc. · creditor: Preferred creditors (aggregate as reported) · currency: CAD
- unsecured creditorsnote: Related party (funded Company operations since inception). Shown to be owed 'more than $2.2 million' as of Date of Bankruptcy - floor figure per document's own wording ('still shown to be owed more than'). Trustee identified Company repaid advances to EVI in excess of advances received by approximately $278,000 during 12-month review period preceding bankruptcy - potential preference payment under review. · page: 4 · as of: Date of Bankruptcy · basis: Trustee's preliminary report - related party funding advances · amount: 2200000 · debtor: 10135739 Canada Inc. · creditor: Groupe Evoluco Inc. (EVI) · currency: CAD
- recovery outcomeentries: basis: liquidation_alternative · quote: Provided that it is confirmed that RBC holds valid and enforceable security over the Property and given the extent of the secured indebtedness owing to RBC as compared to the appraised value of the Property, the Trustee anticipates a distribution to RBC but no distributions to the Company's unsecured creditors. · pct of: unstated · outcome: distribution · class key: secured · stated by: trustee · class label: RBC · creditor name: Royal Bank of Canada · interim final: unstated · conditional on: Provided that it is confirmed that RBC holds valid and enforceable security over the Property · claims qualifier: unstated; basis: liquidation_alternative · quote: Provided that it is confirmed that RBC holds valid and enforceable security over the Property and given the extent of the secured indebtedness owing to RBC as compared to the appraised value of the Property, the Trustee anticipates a distribution to RBC but no distributions to the Company's unsecured creditors. · pct of: unstated · outcome: nil · class key: unsecured · stated by: trustee · class label: the Company's unsecured creditors · interim final: unstated · conditional on: Provided that it is confirmed that RBC holds valid and enforceable security over the Property · claims qualifier: unstated · table missing: