Ontario · NOI
First Report of the Proposal Trustee dated April 20, 2020
Court officer report · 20 April 2020
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
- unsecured creditorsnote: Preferred/priority claim: subject to super-priority under BIA s.81.3 in the case of bankruptcy, and a preferred claim under BIA s.60(1.3)(a) in the case of a Proposal. · page: 3 · as of: 2020-03-26 · basis: Reported by Proposal Trustee as approximate unpaid wages and vacation pay owing as at the date of the NOI · amount: 80000 · debtor: 1348441 Ontario Inc. · creditor: Employees (approx. 150) - unpaid wages and vacation pay · currency: CAD
- secured creditorsnote: CAD-denominated portion of the Scotiabank Indebtedness (see also USD portion below). Guaranteed by related party 1008314 Ontario Limited, owner of the head office/distribution centre real property. Scotiabank issued demand letters and s.244 BIA notices immediately prior to the NOI filing; notice period waived and a Forbearance Agreement subsequently entered into. Described in the report as the Debtor's 'senior secured creditor.' · page: 4 · as of: 2020-03-26 · amount: 5456981 · debtor: 1348441 Ontario Inc. · creditor: Bank of Nova Scotia (Scotiabank) · currency: CAD · security: General security agreement over all present and after-acquired personal property of the Debtor, registered under the Ontario PPSA, pursuant to a June 25, 2018 Commitment Letter
- secured creditorsnote: USD-denominated portion of the Scotiabank Indebtedness (see also CAD portion above). Guaranteed by related party 1008314 Ontario Limited. Scotiabank issued demand letters and s.244 BIA notices immediately prior to the NOI filing; Forbearance Agreement subsequently entered into. · page: 4 · as of: 2020-03-26 · amount: 390821 · debtor: 1348441 Ontario Inc. · creditor: Bank of Nova Scotia (Scotiabank) · currency: USD · security: General security agreement over all present and after-acquired personal property of the Debtor, registered under the Ontario PPSA, pursuant to a June 25, 2018 Commitment Letter
- secured creditorsnote: Related party (principal of the Debtor) loan, referred to as 'approximately $6.3 million' per Management; loans predate the security grant and appear to have been unsecured until March 17, 2020; security is stated to be subordinate to Scotiabank's security and to the Employee Priority Claims (which carry BIA super-priority). Excluded from the initial creditor list and from the NOI creditor list (Appendix A). · page: 5 · amount: 6300000 · debtor: 1348441 Ontario Inc. · creditor: Gurmej (Rick) Walia · currency: CAD · security: General security agreement executed by the Debtor and registered under the PPSA on March 17, 2020
- unsecured creditorsnote: Document narrative does not itemize individual unsecured creditors; an itemized 'List of Creditors with claims of $250 or more' is attached as Appendix A to the NOI (Form 33), of which only partial pages (13, 14, 17, 18, 19) were available for review, so individual creditors are not separately listed here. Related Party Loans to Mr. Walia (~$6.3M, treated as secured above) were excluded from this creditor list. · page: 5 · as of: 2020-03-26 · basis: Trustee's report states the Debtor owed 179 unsecured creditors approximately $1.0 million as at the date of the NOI · amount: 1000000 · debtor: 1348441 Ontario Inc. · creditor: Unsecured creditors (aggregate as reported) · currency: CAD