Nova Scotia · Receivership (court-appointed)
First Report of DRI in its capacity as Court appointed Receiver and Manager of KCCL
Court officer report · 24 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 filing11 verified
- secured creditorsnote: Stated as 'approximately $2.6 million' (the BDC Indebtedness) in the notice of intention to enforce security issued April 7, 2026; described as KCCL's primary secured lender. The as_of date is the date of the notice; the amount is not stated to be a balance as of any later date. Priority: the Town of Truro property tax liability ranks ahead of BDC's collateral (para 28). BDC also agreed to fund the Receiver's borrowings via Receiver's Certificates. · page: 3 · as of: 2026-04-07 · amount: 2600000 · debtor: Kooshie Cushions of Canada Limited · creditor: Business Development Bank of Canada (BDC) · currency: CAD · security: BDC Security registered against the Property at 339 Willow Street, Truro, NS (PID 20239059)
- unsecured creditorsnote: This is a potential claim BY the estate, not an amount owed by KCCL; included only as a flagged item. Shelley asserts bona fide entitlement to at least part as compensation for services; Receiver advised neither Shelley nor related entities can repay. Review ongoing. · page: 7 · basis: Receiver's Review: approximately $400,000 of cash withdrawals/payments from KCCL's bank account made to Shelley, entities in which he has an equity interest, or to unidentified recipients · amount: 400000 · debtor: Kooshie Cushions of Canada Limited · creditor: Related Party Amounts (Shelley and related entities) - potential recovery, not a debt of KCCL · currency: CAD
- unsecured creditorsnote: Statutory priority charge on the Property ahead of BDC's collateral (not an ordinary unsecured claim); accrues interest at 1.25% per month. Regulatory/municipal quasi-debt, listed here because it has no secured-creditor registration but outranks BDC. · page: 10 · as of: 2026-09-24 · basis: Receiver's understanding from discussions with Truro, 'approximately $325,000' as at the date of the First Report (the 'Property Tax Liability') · amount: 325000 · debtor: Kooshie Cushions of Canada Limited · creditor: Town of Truro (property taxes) · currency: CAD
- cash on handnote: Held in trust as at the date of the First Report (dated September 24, 2026); the Interim SRD shows $22,747.13 retained in the trust account as at September 21, 2026. · amount: 23000 · currency: CAD · qualifier: approximately
- disbursementsnote: Total disbursements per the Interim SRD appendix, resulting in $22,747.13 retained in trust. · since: July 2026 (Interim SRD period stated as July 3 to September 21, 2026 in the report; the SRD itself is headed July 9 to September 21, 2026) · amount: 69269.71 · currency: CAD
- operational summaryThe Receiver has secured the sole real property asset (a mixed-use commercial building with seven tenants) and is collecting rents through a third-party property manager. It is seeking approval of a 60-day sale and investment solicitation process, and is continuing to review about $400,000 of related-party payments from the Debtor's bank account.
- professional feesnote: Fees of $41,503 plus expenses and disbursements of $615 and HST of $5,897, totaling $48,015. Receiver's legal counsel (BWB LLP) fees for the same period are $4,636 plus disbursements and HST of $689, totaling $5,325. Separately, the Interim SRD shows $34,350 paid in professional fees to date ($30,895 Receiver; $3,455 counsel). · party: Deloitte Restructuring Inc. (Receiver) · amount: 41503 · period: July 3 to August 31, 2026 · currency: CAD
- receipts cumulativenote: Total receipts per the Interim SRD (appendix): rent $80,670.44, HST $11,293.20, interest income $53.20. The report text states approximately $80,670 collected from tenant rents (excluding HST) and approximately $11,293 in HST on rents. · since: July 2026 (Interim SRD period stated as July 3 to September 21, 2026 in the report; the SRD itself is headed July 9 to September 21, 2026) · amount: 92016.84 · currency: CAD
- report date24 September 2026
- report noFirst Report
- sale outcometext: The Receiver seeks court approval of a proposed sale and investment solicitation process (SISP) for the Truro real property (339 Willow Street); the process has not yet been approved or launched and no bids have been received. · scope: whole_business · status: listed