Alberta · Receivership (court-appointed)
Receiver's First Report to the Court
Court officer report · 28 October 2019
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 filing11 verified
- secured creditorsnote: Outstanding NOI professional fees secured by the $200,000 Administration Charge; the Receiver seeks authority to pay $200,000 to MLT Aikins LLP (Proposal Trustee's counsel) for distribution among the beneficiaries. Amount is the charge ceiling, not a stated balance of fees owing; ATB and others may assess the accounts under the Amending Receivership Order. · page: 5 · amount: 200000 · debtor: Schendel Mechanical Contracting Ltd., Schendel Management Ltd., 687772 Alberta Ltd. · creditor: Administration Charge beneficiaries (NOI professional fees: Bennett Jones LLP, Grant Thornton LLP, Grant Thornton's legal counsel) · currency: CAD · security: $200,000 Administration Charge granted in the NOI Proceedings
- unsecured creditorsnote: Related party. Same balance sheet also shows private loans payable $790,828 and callable debt $201,126 (due in one year) and $2,112,201 (thereafter); creditors not named. · page: 12 · as of: 2018-01-31 · basis: Management's most recently available balance sheet (internal), 'Advances from Shareholders' · amount: 1251021 · debtor: Schendel Management Ltd. · creditor: Advances from shareholders (Schendel Management Ltd.) · currency: CAD
- financial positionnote: Different as-at dates across the three entities. Mechanical historical results: FY19 (year ended Jan 31, 2019) loss from operations $(13,379,093) on revenue $48,284,217. · page: 13 · as at: 2019-05-31 · basis: Mechanical's internal draft balance sheet (unaudited, draft); Receiver relied on unaudited and draft internal financial statements and has not verified accuracy; records described as in disarray, with lack of internal controls and obsolete DOS accounting software · scope: Entity-level: Schendel Mechanical Contracting Ltd. only (shareholders' equity deficit $(3,048,879); total assets mainly receivables relating to the Grande Prairie Regional Hospital project: accounts receivable $24,320,724, arbitration receivable $9,969,455, work in progress $7,595,302). Other entities, separately stated: Schendel Management Ltd. at 2018-01-31 total assets $18,560,328 vs total liabilities $4,370,177; 687772 Alberta Ltd. at 2019-02-28 total assets $765,396 vs total liabilities $688,183 (both internal draft statements). · currency: CAD · total assets: 43722026 · total liabilities: 46770905
- secured creditorsnote: Described as the Companies' major secured lender. Amount is a floor: the Receiver understands from ATB's material that ATB was 'owed in excess of $21.6 million' at the NOI commencement date. Per Mechanical's internal draft balance sheet at May 31, 2019, indebtedness to ATB comprised bank indebtedness $10,618,534, operating loan $14,031,385 and term bank loan $4,000,000 (components not stated by the document as ATB's total; not summed). Security opinion/registrations not described on these pages. · page: 13 · as of: commencement of the NOI Proceedings (March 22, 2019) · amount: 21600000 · debtor: Schendel Mechanical Contracting Ltd., Schendel Management Ltd., 687772 Alberta Ltd. (the Companies) · creditor: ATB Financial · currency: CAD
- unsecured creditorsnote: Related-party balance; secured/unsecured status not stated. · page: 13 · as of: 2019-05-31 · basis: Mechanical's internal draft balance sheet, 'Advnaces from 687772 Alberta Ltd.' · amount: 392941 · debtor: Schendel Mechanical Contracting Ltd. · creditor: 687772 Alberta Ltd. – advances to Mechanical · currency: CAD
- unsecured creditorsnote: Lenders not named; security status not stated. · page: 13 · as of: 2019-05-31 · basis: Mechanical's internal draft balance sheet, 'Private Loans Payable' · amount: 2911976 · debtor: Schendel Mechanical Contracting Ltd. · creditor: Private loans payable (Mechanical) · currency: CAD
- unsecured creditorsnote: Security status not stated. · page: 13 · as of: 2019-05-31 · basis: Mechanical's internal draft balance sheet, 'Loan Payable - Arundel Capital' · amount: 427130 · debtor: Schendel Mechanical Contracting Ltd. · creditor: Arundel Capital · currency: CAD
- unsecured creditorsnote: Receiver disclaimed several equipment leases where no equity was available; lessors not named. · page: 13 · as of: 2019-05-31 · basis: Mechanical's internal draft balance sheet, 'Leases Payable' · amount: 53042 · debtor: Schendel Mechanical Contracting Ltd. · creditor: Equipment lessors · currency: CAD
- unsecured creditorsnote: Related-party balance; secured/unsecured status not stated. · page: 13 · as of: 2019-05-31 · basis: Mechanical's internal draft balance sheet, 'Advances from Parent Company' · amount: 2696571 · debtor: Schendel Mechanical Contracting Ltd. · creditor: Schendel Management Ltd. (parent) – advances to Mechanical · currency: CAD
- unsecured creditorsnote: Related party. Same balance sheet shows income taxes payable $7,866, current portion of callable debt $60,411 and callable debt $606,148; creditors not named. · page: 13 · as of: 2019-02-28 · basis: 687's most recent internal draft balance sheet, 'Advances from Shareholders' · amount: 13758 · debtor: 687772 Alberta Ltd. · creditor: Advances from shareholders (687772 Alberta Ltd.) · currency: CAD
- unsecured creditorsnote: Receiver cautions records lack internal controls and payables were manually recorded; reliability of figure is questionable. · page: 13 · as of: 2019-05-31 · basis: Mechanical's internal draft balance sheet (unaudited), 'Accounts Payable and Accrued Liabilities' · amount: 10552635 · debtor: Schendel Mechanical Contracting Ltd. · creditor: Trade suppliers / accounts payable (Schendel Mechanical Contracting Ltd.) · currency: CAD