Newfoundland and Labrador · Receivership (court-appointed)
Second Report of the Receiver
Court officer report · 28 September 2026
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 filing10 verified
- secured creditorsnote: Amount per RBC payout statement (Appendix E, not included in these pages); statement date not given in the pages. Silverado sold for gross proceeds of $34,500. Proposed distribution would be full and final payment of RBC's secured indebtedness. Bank of Montreal has a subordinate registration on the same collateral. · page: 7 · amount: 21549.52 · debtor: Innovative Capital Investments Inc. · creditor: Royal Bank of Canada · currency: CAD · security: Valid priority secured claim against 2021 Chevrolet Silverado 2500 (S/N 1GC4YREY7MF165561); NS PPSA registration earlier in time than BMO's
- secured creditorsnote: Total per BMO payout statement as at Aug 26, 2026: principal $16,076,259.99 + interest $1,915,061.04 (per diem $3,179.49); Receiver reports BMO advised this as outstanding indebtedness. All loan accounts shown as 'DEFAULT LOAN'. Includes $243,817.93 professional fees line. Related parties (Croft, Lennox, Dominion, Lennox Fisheries) are guarantors/co-grantors. Proposed interim distribution of $14,372,116.01 would be a 79.9% repayment. Bank holds priority over Kubota Collateral sale proceeds (gross $59,250) per Receiver's counsel, though Kubota Canada Ltd. registered earlier in NS PPSA only; Bank's interest in the Silverado is subordinate to RBC. Bank's PPSA registrations against Dominion were discharged April 1, 2026 following the NL-013 sale; Bank's security attached to net sale proceeds. · page: 8 · as of: 2026-08-26 · amount: 17991321.03 · debtor: Innovative Capital Investments Inc. · creditor: Bank of Montreal · currency: CAD · security: General security agreements over all present and after-acquired personal property incl. DFO fishing licences/quota (Company GSA, Dominion GSA, Croft GSA, Lennox GSA); statutory mortgages on vessels R.S. Journey (principal $2,100,000) and R.S. Journey II (principal $1,800,000); personal guarantees of Croft (limited to $17,200,000) and Lennox (limited to $3,000,000); corporate guarantees of Dominion (limited to $10,600,000) and Lennox Fisheries (limited to $3,000,000). Credit facilities total limit not to exceed $17,200,000 (overdraft $400,000; corporate card $200,000; non-revolving $3,000,000, $3,000,000 and $10,600,000) — these are facility limits, not balances. Counsel opines security validly registered/enforceable, subject to assumptions and qualifications.
- secured creditorsnote: Deemed trust class. Composed of federal income tax $51,003.33, provincial income tax $32,131.66, CPP employee part $18,481.28, EI employee part $4,718.20. This is the trust portion of total source-deduction arrears of $438,018.65 (the remaining $331,684.18 is non-trust, included in unsecured entry). Proposed distribution would be full and final payment of the Deemed Trust Claim for payroll obligations. · page: 134 · as of: 2026-05-20 · amount: 106334.47 · debtor: Innovative Capital Investments Inc. · creditor: Canada Revenue Agency (source deductions deemed trust) · currency: CAD · security: Statutory deemed trust (Income Tax Act, CPP, EI Act) for unremitted source deductions; ranks in priority to all other creditors out of property subject to the trust
- unsecured creditorsnote: Balance after the deemed trust portion; letter's component line items are stated as given and not recomputed. Whether any part ranks preferred or unsecured is not stated in the document; classified here as the non-trust remainder. · page: 135 · as of: 2026-05-20 · basis: CRA letter: total source-deduction debt $438,018.65 (CPP $217,551.23, EI $89,871.55, tax deductions $27,819.21, penalties and interest $102,776.66); letter states 'remaining balance of $331,684.18' after the $106,334.47 trust amount · amount: 331684.18 · debtor: Innovative Capital Investments Inc. · creditor: Canada Revenue Agency (source deductions, non-trust portion) · currency: CAD
- secured creditorsnote: Deemed trust class: CRA acknowledges $0 of its HST claim ($9,184.86 owing) is subject to a trust; see unsecured entry for the HST balance. · page: 138 · as of: 2026-05-20 · amount: 0 · debtor: Innovative Capital Investments Inc. · creditor: Canada Revenue Agency (HST deemed trust) · currency: CAD · security: Excise Tax Act s. 222(3) trust
- unsecured creditorsnote: Regulatory/tax claim; CRA confirms no deemed-trust portion. · page: 138 · as of: 2026-05-20 · basis: CRA letter: GST/HST owing for period ended 2025-02-11 (P/E 2025-02-11); $0 subject to trust · amount: 9184.86 · debtor: Innovative Capital Investments Inc. · creditor: Canada Revenue Agency (GST/HST) · currency: CAD
- closing confirmedscope: the R.S. Journey II · outcome: completed · effective: 2026-08-25 · date basis: stated · approval order date: 2026-06-25
- purchaserprice: note: gross sale proceeds for the estate · amount: 450000 · sealed: false · currency: CAD · scope: the R.S. Journey II (the "Vessel") · status: closed · name note: purchaser of the R.S. Journey II not named in the text provided; referred to as 'the Purchaser' · structure: assets · name source: recital · relationship: unstated
- recovery outcomeentries: basis: estimated · quote: The interim distribution to the Bank, if approved, would represent a 79.9% repayment of the Bank's August 26, 2026 outstanding indebtedness. · pct of: unstated · outcome: distribution · pct low: 79.9 · currency: CAD · pct high: 79.9 · class key: secured · stated by: receiver · amount low: 14372116.01 · cumulative: false · amount high: 14372116.01 · class label: Bank of Montreal · claims amount: 17991321.03 · creditor name: Bank of Montreal · interim final: interim · conditional on: subject to Court approval of the proposed interim distribution · currency quote: All references to monetary amounts in this Second Report are in Canadian dollars · claims qualifier: asserted · stated on: 2026-09-28 · table missing:
- sale outcometext: The R.S. Journey II sale, approved by the Court on June 25, 2026, closed on August 25, 2026 for gross proceeds of $450,000. The groundfish Quota and Licenses remain unsold because quota overages must be addressed before DFO will transfer the Licenses. · scope: ancillary · status: closed