Ontario · Proposal
Second Supplement to the Proposal Trustee's First Report to Court dated January 22, 2024.pdf
Court officer report · 22 January 2024
A plain-language read of this filing opens with a subscription.
What we verified from this filing1 verified
- recovery outcomeentries: basis: estimated · quote: In the event that the DOJ's interpretation of Section 36(1) of WEPPA is incorrect and Canada's subrogation rights would entitle it to a pro rata distribution on a pari passu basis with other unsecured creditors, the proposed distribution to unsecured creditors would be approximately 16.5 cents on the dollar, based on the quantum of claims received to date. · pct of: unstated · outcome: distribution · pct low: 16.5 · pct high: 16.5 · class key: unsecured · stated by: proposal_trustee · class label: unsecured creditors (DOJ's interpretation of Section 36(1) incorrect scenario) · interim final: unstated · cents on dollar: 16.5 · claims qualifier: unstated; basis: estimated · quote: In both scenario, Former Employees are estimated to receive their: (a) priority distributions for unpaid pension contributions; (b) WEPPA amounts from Service Canada where eligible; and (c) approximately 16.5 cents on the dollar for the residual portion of their claim, including any claims for post-retirement benefits, severance and termination. · pct of: unstated · outcome: distribution · pct low: 16.5 · pct high: 16.5 · class key: unsecured · stated by: proposal_trustee · class label: Former Employees (residual claims, DOJ interpretation incorrect scenario) · creditor name: Former Employees · interim final: unstated · conditional on: priority distributions for unpaid pension contributions and WEPPA amounts from Service Canada where eligible · cents on dollar: 16.5 · claims qualifier: unstated; basis: estimated · quote: In addition, employees would have received a distribution of approximately 5 cents on the dollar (now calculated at slightly less at 4 cents due to the quantum of the employees claim) for their residual claims. · pct of: unstated · outcome: distribution · pct low: 4 · pct high: 4 · class key: weppa · stated by: proposal_trustee · class label: Former Employees (residual claims, WEPPA does not apply scenario) · creditor name: Former Employees · interim final: unstated · cents on dollar: 4 · claims qualifier: unstated; basis: estimated · quote: Trade creditors would have similarly received approximately 4 cents on the dollar pursuant to this scenario. · pct of: unstated · outcome: distribution · pct low: 4 · pct high: 4 · class key: weppa · stated by: proposal_trustee · class label: trade creditors (WEPPA does not apply scenario) · creditor name: trade creditors · interim final: unstated · cents on dollar: 4 · claims qualifier: unstated; basis: liquidation_alternative · quote: In a bankruptcy, the Proposal Trustee is of the view that the balance of the Secured Creditors claim continues to exceed the liquidation value of the assets, providing no projected recovery to the unsecured or preferred creditors. · pct of: unstated · outcome: nil · class key: preferred · stated by: proposal_trustee · class label: unsecured or preferred creditors · interim final: unstated · claims qualifier: unstated; basis: estimated · quote: Should the DOJ's interpretation of Section 36(1) be incorrect, the distribution aligns with that addressed in the Proposal Trustee's Report, wherein Former Employees should receive their priority distributions, their WEPP amount from Service Canada if eligible, and the balance of the proposal fund to be distributed pro rata, which approximates 17 cents on the dollar for residual claims. This permutation calculates estimated total recoveries to Former Employees of approximately $10.034 million, inclusive of WEPP. · pct of: unstated · outcome: distribution · pct low: 17 · pct high: 17 · class key: unsecured · stated by: proposal_trustee · amount low: 10034000 · amount high: 10034000 · class label: Former Employees (DOJ interpretation Section 36(1) incorrect scenario) · creditor name: Former Employees · interim final: unstated · cents on dollar: 17 · claims qualifier: unstated; basis: estimated · quote: This scenario estimates recoveries of approximately $8.008 million to Former Employees, after the SC clawback. · pct of: unstated · outcome: distribution · class key: unsecured · stated by: proposal_trustee · amount low: 8008000 · amount high: 8008000 · class label: Former Employees (DOJ interpretation Section 36(1) correct scenario) · creditor name: Former Employees · interim final: unstated · conditional on: excludes claim components not considered eligible wages under WEPPA, including pension priorities and benefits, subject to SC clawback · claims qualifier: unstated; basis: estimated · quote: Specifically, based on the estimated claims, that scenario would result in an estimated total recovery to Former Employees of $7.159 million. · pct of: unstated · outcome: distribution · class key: weppa · stated by: proposal_trustee · amount low: 7159000 · amount high: 7159000 · class label: Former Employees (WEPPA not approved scenario) · creditor name: Former Employees · interim final: unstated · claims qualifier: unstated; basis: liquidation_alternative · quote: For greater clarity, it continues to be the Proposal Trustee's view that any scenario pursuant to the Accepted Proposal is of greater monetary benefit to the creditors than a bankruptcy as the Proposal Trustee is of the view that there would be no distribution to unsecured creditors in a bankruptcy. · pct of: unstated · outcome: nil · class key: unsecured · stated by: proposal_trustee · class label: unsecured creditors · interim final: unstated · claims qualifier: unstated; basis: plan · quote: Despite this, under the terms of the Third Amended Proposal, the Affiliates are not receiving any distribution from the available funds. · pct of: unstated · outcome: nil · class key: unsecured · stated by: debtor · class label: Affiliates · creditor name: Affiliates · interim final: unstated · related party: true · claims qualifier: unstated · stated on: 2024-01-22 · table missing: A table illustrating the total estimated distribution to Former Employees and trade creditors pursuant to this scenario is included at the end of this section.; A table illustrating the total estimated aggregate distribution to Former Employees can be found at the end of this section.; A table illustrating the total estimated distribution to Former Employees, in aggregate, and trade creditors pursuant to the three discussed permutations can be found below.