Ontario · Proposal

Trustee's First Report to Court dated September 27, 2021.pdf

Court officer report · 27 September 2021

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courtONTARIO SUPERIOR COURT OF JUSTICE (IN BANKRUPTCY AND INSOLVENCY)
court file no32-2758560
appointeeGrant Thornton Limited
appointee roleproposal trustee
statutory basisSection 58 of the Bankruptcy and Insolvency Act
commencement date12 August 2021
unsecured creditorsnote: Deemed trust priority claim; Trustee corresponded with CRA and understands a trust examination will be conducted to confirm the amount; ranks as Crown Claim to be paid within 6 months of Court approval, separate from Proposal Fund. · page: 7 · as of: 2021-08-09 · basis: Company's estimate of unpaid source deduction arrears / government crown claims, per Trustee's report · amount: 23000 · debtor: Eco Burn Inc. · creditor: Canada Revenue Agency (deemed trust / source deduction arrears) · currency: CAD
financial positionnote: Total assets figure is net book value per SOA table ($1,013,404); estimated realizable value under liquidation scenario is $125,262. Total liabilities figure ($880,191 = Secured $250,000 + Preferred $20,315 + Unsecured $609,876) is per SOA classification table. Includes related-party receivables (Enercon, Eco Burn Holdings, Nunavut) largely deemed unrealizable in liquidation. · page: 24 · as at: 2021-08-09 · basis: Sworn Statement of Affairs (book/net book value for assets; estimated claims for liabilities) · scope: Eco Burn Inc. (entity level, per SOA); note - estimated realizable value of assets in liquidation scenario per Trustee estimate is $125,262 · currency: CAD · total assets: 1013404 · total liabilities: 880191
secured creditorsnote: Stated as approximate amount, inclusive of interest and fees, per sworn Statement of Affairs; only known secured creditor per PPSA registration search; not affected by the Proposal; independent legal opinion confirmed security valid and enforceable against a trustee in bankruptcy. · page: 24 · as of: 2021-08-09 · amount: 250000 · debtor: Eco Burn Inc. · creditor: Royal Bank of Canada (RBC) · currency: CAD · security: Security over the Debtor's personal property, assets and undertakings (PPSA registration, Ontario)
unsecured creditorsnote: Preferred claim under BIA s.136(1)(d); all outstanding wages already paid, only accrued vacation pay arrears remain (estimated ~$21,000 per Company's own calculation elsewhere in report, considering BIA limits). · page: 24 · as of: 2021-08-09 · basis: Estimated Claim Per Statement of Affairs (SOA), as sworn · amount: 20315 · debtor: Eco Burn Inc. · creditor: Preferred creditors (employees - accrued vacation pay arrears) · currency: CAD
unsecured creditorsnote: Document names no individual creditors in the extracted pages; amount includes non-preferred amounts due to employees; prose elsewhere approximates this figure as '$609,000'. · page: 24 · as of: 2021-08-09 · basis: Estimated Claim Per Statement of Affairs (SOA), as sworn · amount: 609876 · debtor: Eco Burn Inc. · creditor: Unsecured creditors (aggregate as reported) · currency: CAD
recovery outcomeentries: basis: plan · quote: The Proposal provides for the restructuring of the Company's liabilities through the distribution to proven Unsecured Creditors of a monetary payment equal to the Unsecured Creditor's proportionate share of a Proposal Fund of $31,000, which according to the Company's records, would result in a financial recovery equal to 5%, or $0.05 for every $1.0 of proven unsecured claims. · pct of: proven_claims · outcome: distribution · pct low: 5 · pct high: 5 · class key: unsecured · stated by: proposal_trustee · amount low: 31000 · amount high: 31000 · class label: Unsecured Creditors · interim final: unstated · cents on dollar: 5 · claims qualifier: unstated; basis: plan · quote: the Proposal contemplates full payment of proven preferred creditor claims. · pct of: proven_claims · outcome: paid_in_full · pct low: 100 · pct high: 100 · class key: preferred · stated by: proposal_trustee · class label: Preferred Creditors · interim final: unstated · claims qualifier: unstated; basis: liquidation_alternative · quote: The estimated distribution to the Company's unsecured creditors in a bankruptcy scenario would be $NIL, due to the amount of indebtedness due to RBC, the estimated net realization of Eco Burn's assets, and the possibility of the secured creditor appointing its own receiver. · pct of: unstated · outcome: nil · class key: unsecured · stated by: proposal_trustee · class label: Unsecured Creditors · interim final: unstated · claims qualifier: unstated · stated on: 2021-09-27 · table missing: