Ontario · Receivership (court-appointed)
Application Record dated
Application / notice of application · 3 October 2024
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What we verified from this filing19 verified
- applicantCANADIAN WESTERN BANK
- courtSUPERIOR COURT OF JUSTICE (COMMERCIAL LIST)
- court file noCV-24-00725775-00CL
- provinceONTARIO
- statutory basisSUBSECTION 243(1) OF THE BANKRUPTCY AND INSOLVENCY ACT, R.S.C. 1985, c. B-3, AS AMENDED, AND SECTION 101 OF THE COURTS OF JUSTICE ACT, R.S.O. 1990, c. C.43, AS AMENDED
- appointeeMNP LTD.
- appointee roleProposed Receiver
- commencement date9 August 2024
- secured creditorsnote: Revolving Credit Agreement executed Feb 13, 2022 established a $5,000,000 credit facility limit (facility limit, not a stated outstanding balance); payable on demand. Personal guarantee also granted by Mr. Mahajan (director/officer, related party guarantor). · page: 13 · debtor: The Health and Beauty Distributor Inc. · creditor: Canadian Western Bank · currency: CAD · security: General Security Agreements granted by Health and Beauty and Mr. Mahajan (Feb 13, 2023); Full Liability Guarantees and GSAs from Oshawa 6, GL&RM and Logistics House (with Mr. Mahajan)
- secured creditorsnote: Non-revolving demand loan per Commitment Letter dated Jan 31, 2023 in original/registered principal amount of $4,350,000 (original advance/registered principal, not a stated outstanding balance). · page: 13 · debtor: GLRM Oshawa 6 Inc. · creditor: Canadian Western Bank · currency: CAD · security: First ranking Charge/Mortgage registered Feb 22, 2023 as Instrument No. DR2212253 (the "Oshawa 6 Charge") on Unit 6, 1155 Boundary Road; Assignment of Rents (DR2212254); Full Liability Guarantees from Health and Beauty, Mr. Mahajan, GL&RM and Logistics House
- secured creditorsnote: Non-revolving demand loan per Commitment Letter dated Jan 31, 2023 in original/registered principal amount of $8,500,000 (original advance/registered principal, not a stated outstanding balance). · page: 13 · debtor: GL & RM Inc. · creditor: Canadian Western Bank · currency: CAD · security: First ranking Charge/Mortgage registered Feb 22, 2023 as Instrument No. DR2212019 (the "GL&RM Charge") on Units 1 and 2, 1155 Boundary Road; Assignment of Rents (DR2212020); Full Liability Guarantees from Health and Beauty, Mr. Mahajan, Oshawa 6 and Logistics House
- secured creditorsnote: Second mortgagee; Bank states it was not made aware of nor consented to this registration. · page: 16 · as of: 2023-07-31 · amount: 2000000 · debtor: GL & RM Inc. · creditor: MHZ Capital Group Ltd. and 2057123 Ontario Inc. · currency: CAD · security: Charge registered July 31, 2023 as Instrument No. DR2280727 against Units 1 and 2, 1155 Boundary Road
- secured creditorsnote: Third mortgagee; Bank states it was not made aware of nor consented to this registration. · page: 16 · as of: 2024-02-07 · amount: 660879 · debtor: GL & RM Inc. · creditor: 11533533 Canada Ltd. · currency: CAD · security: Charge registered Feb 7, 2024 as Instrument No. DR2296214 against Units 1 and 2, 1155 Boundary Road
- secured creditorsnote: Second mortgagee; Bank states it was not made aware of nor consented to this registration. · page: 16 · as of: 2023-07-31 · amount: 2000000 · debtor: GLRM Oshawa 6 Inc. · creditor: MHZ Capital Group Ltd. and 2057123 Ontario Inc. · currency: CAD · security: Charge registered July 31, 2023 as Instrument No. DR2250386 against Unit 6, 1155 Boundary Road
- secured creditorsnote: Third mortgagee; Bank states it was not made aware of nor consented to this registration. · page: 17 · as of: 2024-02-07 · amount: 660879 · debtor: GLRM Oshawa 6 Inc. · creditor: 11533533 Canada Ltd. · currency: CAD · security: Charge registered Feb 7, 2024 as Instrument No. DR2296215 against Unit 6, 1155 Boundary Road
- secured creditorsnote: Municipal tax arrears; Tax Certificate indicates City of Oshawa commencing tax sale proceedings for this unit. · page: 31 · as of: 2024-07-07 · amount: 67125.64 · debtor: GL & RM Inc. · creditor: City of Oshawa · currency: CAD · security: Municipal property tax arrears secured against Unit 1, 1155 Boundary Road (Tax Certificate)
- secured creditorsnote: Aggregated per serialized-equipment financier convention. Members: Indcom Leasing Inc. (Jan 30, 2024, equipment/other); Toyota Industries Commercial Finance Canada, Inc. (May 15, 2024, equipment); Ford Credit Canada Company (Feb 9, 2022, equipment/other/motor vehicle); The Bank of Nova Scotia (Aug 24, 2022, equipment/other/motor vehicle); BMW Canada Inc. (Sept 2, 2022, consumer goods/equipment/other/motor vehicle); First Financial Canadian Leasing Ltd. (March 22, 2023, equipment); Daimler Truck Financial Services Canada Corporation (March 29, 2023, equipment/other/motor vehicle); De Lage Landen Financial Services Canada Inc. (May 17, 2023, equipment/accounts/other/motor vehicle). No individual balances stated; PPSA search current as of July 1, 2024. CWB's own blanket PPSA registration (Feb 14, 2023) is captured separately as the Bank's GSA security. · page: 31 · as of: 2024-07-01 · debtor: The Health and Beauty Distributor Inc. · creditor: PPSA equipment financiers (PMSI class) · currency: CAD · security: Financing statements registered under the PPSA (Ontario) against Health and Beauty for equipment/motor vehicle collateral
- secured creditorsnote: Municipal tax arrears. · page: 31 · as of: 2024-07-07 · amount: 46975.73 · debtor: GLRM Oshawa 6 Inc. · creditor: City of Oshawa · currency: CAD · security: Municipal property tax arrears secured against Unit 6, 1155 Boundary Road (Tax Certificate)
- secured creditorsnote: Municipal tax arrears; Tax Certificate indicates City of Oshawa commencing tax sale proceedings for this unit. · page: 31 · as of: 2024-07-07 · amount: 63963.57 · debtor: GL & RM Inc. · creditor: City of Oshawa · currency: CAD · security: Municipal property tax arrears secured against Unit 2, 1155 Boundary Road (Tax Certificate)