Ontario · Receivership (court-appointed)
Pre-Filing Report of the Receiver dated June 8, 2024
Court officer report · 8 June 2024
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 filing5 verified
- secured creditorsnote: Applicant is the Company's only secured creditor (para 17), controlled by directors/majority shareholders Frank Arlotta and Laura Moscone - related party. Aggregate debt of ~$903,000 comprises: Laura Secured Debt ~$231,000 (demand promissory note dated May 3, 2023 plus other secured advances - related party, individual), Falcon Secured Debt ~$489,000 (~$381,000 demand promissory note dated Aug 30, 2019 plus ~$108,000 accrued/unpaid management fees - related party company controlled by Frank/Laura), and Group of Six Note ~$182,000 (demand promissory note dated May 3, 2023 - related party company controlled by Frank/Laura). Independent counsel (Reconstruct LLP) opined security valid and enforceable, subject to customary qualifications (Security Opinions). · page: 6 · as of: 2024-02-29 · amount: 903000 · debtor: Milestone Marble & Granite Ltd. · creditor: Milestone Distribution 2024 Ltd. (the Applicant) · currency: CAD · security: General Security Agreements (GSAs) dated May 3, 2023 (in favour of Laura Moscone), August 19/30, 2019 (in favour of Falcon Enterprises Corp.), and May 3, 2023 (in favour of Group of Six Enterprises Ltd.); rights assigned to the Applicant pursuant to three Assignment of Indebtedness and Security Agreements dated February 29, 2024
- financial positionnote: SH Equity of ($1,023,363) reflects negative equity position. Total liabilities primarily comprise: secured debt owing to the Applicant (~$903,000, within Advances from SH and related companies of $1,922,622), other unsecured debts owing to shareholders/related parties (~$1.0 million), and AP/accruals/deposits (~$302,000, exact $301,619); also includes CEBA loan $20,000 and BDC loans $78,220. · page: 7 · as at: 2024-05-31 · basis: unaudited internal balance sheet (book value); May 31, 2024 financials not finalized and subject to adjustment · scope: entity - Milestone Marble & Granite Ltd. (unconsolidated) · currency: CAD · total assets: 1299098 · total liabilities: 2322461
- secured creditorsnote: RBC was the Company's former operating lender; RBC issued formal demand and NITES on April 13, 2023, but the operating line was fully repaid via the RBC Repayment on May 23, 2023 (funded by Group of Six and Laura personally). Registration remains on PPSA record but the underlying debt has been repaid - security effectively discharged; no current balance owing. · page: 8 · as of: 2024-04-18 · debtor: Milestone Marble & Granite Ltd. · creditor: Royal Bank of Canada · currency: CAD · security: PPSA financing statement (Ontario), collateral classified as inventory/equipment/accounts/other, registered January 25, 2015 (blanket, master agreement description); registered as of PPSA Search Results currency date April 18, 2024
- unsecured creditorsnote: Document names no individual arms-length unsecured creditors. · page: 8 · as of: 2024-05-31 · basis: Company estimate of arms-length unsecured obligations · amount: 160000 · debtor: Milestone Marble & Granite Ltd. · creditor: Unsecured creditors (aggregate as reported) · currency: CAD
- unsecured creditorsnote: Approximate aggregate owed to certain shareholders and other related parties in respect of various unsecured loans/advances; some names given but list explicitly stated as non-exhaustive ("among others") - related party. · page: 8 · as of: 2024-05-31 · basis: Company's records, as reported · amount: 1000000 · debtor: Milestone Marble & Granite Ltd. · creditor: Related-party unsecured lenders (aggregate, including Falcon Enterprises Corp., Woolacott Holdings Inc., Basentana Holdings Ltd., and Perth Park Holdings Ltd., among others) · currency: CAD