Ontario · Proposal
Trustee's Report on Proposal dated January 6, 2023
Court officer report · 6 January 2023
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 filing14 verified
- appointeeRSM Canada Limited
- appointee roleTrustee
- commencement date16 December 2022
- court file no31-2895096
- proceeding typebia_proposal
- statutory basisPart III, Division 1 of the Bankruptcy and Insolvency Act (Canada), R.S.C. 1985, C. B 3, as amended
- statutory basisBankruptcy and Insolvency Act (Canada), R.S.C. 1985, C. B 3, as amended
- financial positionnote: Company's liabilities exceeded estimated realizable value of assets by over $12,744,000 per Condensed Statement; amount subject to change depending on actual realizable value of assets and claims filed; GSA Indebtedness (creditors holding General Security Agreements) totals $10,589,895, approximately $4.1 million greater than book value of assets, before consideration of FCC's specifically-secured equipment claim · page: 15 · as at: NOI filing date · basis: Condensed Statement of assets and liabilities; book value for total assets, net realizable value estimated at $2,280,079 (~35% of book value); liabilities per Condensed Statement (Secured $2,280,079, Preferred $nil, Unsecured $12,744,753.98, Employee/Pension Priority $nil) · scope: Vaughn Mills Packaging Ltd. (single entity) · currency: CAD · total assets: 6487894 · total liabilities: 15024832.98
- secured creditorsnote: CIBC is an Unaffected Creditor in the Proposal; also provided revolving operating line of credit to a maximum of $4,500,000 (facility limit, increasing to $5,000,000 April 1, 2023); legal opinion on validity/enforceability of security pending from J&P · page: 15 · as of: NOI filing date · amount: 2208470 · debtor: Vaughn Mills Packaging Ltd. · creditor: CIBC (Canadian Imperial Bank of Commerce) · currency: CAD · security: General Security Agreement representing a first charge on all of the Company's personal property and equipment
- secured creditorsnote: Company assessed value of FCC's security (equipment) at $404,000 (FCC Assessed Value), before ~$108,000 estimated liquidation costs; FCC may vote as unsecured for the deficiency; legal opinion on validity/enforceability of security pending from J&P · page: 15 · as of: NOI filing date · amount: 1615877 · debtor: Vaughn Mills Packaging Ltd. · creditor: Farm Credit Canada (FCC) · currency: CAD · security: Secured by specific equipment, plus additional $500,000 secured by a General Security Agreement
- secured creditorsnote: Related party to the Company; per letter dated December 28, 2022, Kensington assessed value of its security as $nil for Proposal purposes and waived rights to dividends payable under the Proposal to Unsecured Creditors · page: 15 · as of: NOI filing date · amount: 6076927 · debtor: Vaughn Mills Packaging Ltd. · creditor: Kensington Private Equity Fund · currency: CAD · security: General Security Agreement
- unsecured creditorsnote: Document names no individual unsecured creditors in these pages; elsewhere trustee's report references prose estimate that indebtedness to unsecured creditors 'was in excess of $2.8 million' as at some point in 2022, and a separate estimate of 'Total unsecured claims per Statement of Affairs excluding Unaffected Claims' of $4,638,158 (excluding unsecured claims of CIBC, Kensington and VMP) used for distribution modelling · page: 15 · as of: NOI filing date · basis: Balance per Condensed Statement of assets and liabilities · amount: 12744753.98 · debtor: Vaughn Mills Packaging Ltd. · creditor: Unsecured creditors (aggregate per Condensed Statement) · currency: CAD
- secured creditorsnote: Related party to the Company; per letter dated December 28, 2022, VMP assessed value of its security as $nil for Proposal purposes and waived rights to dividends payable under the Proposal to Unsecured Creditors · page: 16 · as of: NOI filing date · amount: 1804498 · debtor: Vaughn Mills Packaging Ltd. · creditor: VMP Capital Partners Ltd. · currency: CAD · security: General Security Agreement
- recovery outcomeentries: basis: plan · quote: If the Proposal is accepted by the Creditors and approved by the Court, the Trustee estimates that there will be between $850,000 and $900,000 available for distribution to Unsecured Creditors with Proven Claims that will result in an estimated dividend payment of approximately $0.174 to $0.184 per dollar of Proven Claim. · pct of: proven_claims · outcome: distribution · class key: unsecured · stated by: proposal_trustee · amount low: 850000 · amount high: 900000 · class label: Unsecured Creditors with Proven Claims · interim final: unstated · conditional on: If the Proposal is accepted by the Creditors and approved by the Court · claims qualifier: unstated; basis: liquidation_alternative · quote: In the event of a bankruptcy of VMPL, the Trustee estimates that, based on the Company's assets set out on the Condensed Statement, and assuming the validity and enforceability of the security held by CIBC, FCC, Kensington and VMP, there will be no funds available for distribution to the Unsecured Creditors. · pct of: unstated · outcome: nil · class key: unsecured · stated by: proposal_trustee · class label: Unsecured Creditors · interim final: unstated · conditional on: assuming the validity and enforceability of the security held by CIBC, FCC, Kensington and VMP · claims qualifier: unstated · stated on: 2023-01-06 · table missing: