Ontario · Receivership (court-appointed)
First Report of the Interim Receiver
Court officer report · 3 November 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: Aggregate of three credit facilities (demand operating loan, equipment loan, business credit card facility) including accrued interest and costs, per Chan Affidavit; approximate figure ('approximately $5.9 million'). Full cross-guarantee provided by 256; limited personal guarantees provided by directors Hussain, Kahlon and Arora. · page: 5 · as of: 2024-08-26 · amount: 5900000 · debtor: Canadian Motor Freight Ltd. (CMF) · creditor: Canadian Western Bank (CWB) · currency: CAD · security: General security agreement over all present and after-acquired assets and undertaking of CMF and 256; charge/mortgage on title to 400 Brunel property
- secured creditorsnote: Demand non-revolving loan indebtedness. Full cross-guarantee provided by CMF; limited personal guarantees provided by directors Hussain, Kahlon and Arora. · page: 5 · as of: 2024-08-26 · amount: 15600000 · debtor: 2568403 Ontario Inc. (256) · creditor: Canadian Western Bank (CWB) · currency: CAD · security: General security agreement over all present and after-acquired assets and undertaking of CMF and 256; charge/mortgage on title to 400 Brunel property
- secured creditorsnote: Figure represents accumulated lease and financing payment arrears (not total facility balance) per Management summary; certain equipment already repossessed by lessors pre-filing · page: 16 · as of: 2024-10-18 · amount: 1700000 · debtor: Canadian Motor Freight Ltd. (CMF) · creditor: PPSA equipment financiers (PMSI class) · currency: CAD · security: Financing statements registered under the PPSA (Ontario) against equipment/fleet assets, primarily equipment leases
- secured creditorsnote: Subordinated: Postponement of this charge in favour of CWB registered on title April 11, 2023 · page: 17 · as of: 2022-12-22 · amount: 950000 · debtor: 2568403 Ontario Inc. (256) · creditor: Khawar Masood and Gulfam Sajjil · currency: CAD · security: Charge/mortgage registered on title to 400 Brunel property; registered principal amount
- financial positionnote: Stated 'TOTAL LIABILITIES' line of $35,571,019 equals Total Assets and includes shareholder equity of $4,667,252 within the stated total (current liabilities $7,434,619 + long-term liabilities $23,469,148 + shareholder equity $4,667,252). This FY23 compiled statement (part of the Bank Reporting) predates the FY24 period in which Management acknowledged the Bank Reporting contained figures it knew to be materially inaccurate (see paras 42-45); FY24 Bank Reporting vs. accounting-records comparison shows Revenue $40.5M vs $23.9M and other discrepancies, but no full FY24 balance sheet is reproduced on the cited pages. · page: 26 · as at: 2023-02-28 · basis: compiled (unaudited) - Compilation Engagement Report prepared by MS Chughtai Professional Corporation, CSRS 4200; document notes 'readers are cautioned that the financial information may not be appropriate for their purposes' · scope: combined balance sheet of Canadian Motor Freight Ltd. and 2568403 Ontario Inc. · currency: CAD · total assets: 35571019 · total liabilities: 35571019