Ontario · Receivership (court-appointed)
First Report of the Receiver dated December 22, 2025
Court officer report · 22 December 2025
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 filing3 verified
- financial positionnote: Prose states total liabilities of 'approximately $2.0 million'; table states exact Total Known Creditors of $1,999,960.16 (secured $1,579,376.13 + unsecured $420,584.03 + potential priority claims shown as nil/unknown). Potential priority claims (unpaid employee wages ~6 weeks, and CRA indebtedness) are labelled 'Unknown' and excluded from the total. No total asset figure stated; Receiver notes it has 'limited information regarding the assets of the Debtors' beyond a preliminary liquidator's valuation. · page: 7 · as at: 2025-11-04 (Date of Appointment) · basis: Receiver's estimate based on limited unaudited information available from former employees, landlords, and RBC/counsel (management non-cooperative) · scope: Combined/aggregate across all four Debtors: 12870428 Canada Inc., 15223873 Canada Inc., 15224705 Canada Inc., 15224721 Canada Inc. · currency: CAD · total liabilities: 1999960.16
- secured creditorsnote: Table (as at Date of Appointment) states estimated amount owed of $1,579,376.13; prose elsewhere states approximately $1.5 million in aggregate outstanding under the Credit Facilities, exclusive of fees, costs and interest ('RBC Secured Debt') as at the Date of Appointment - exact table figure used as amount, prose approximation noted. Debts guaranteed personally by directors V. Kakkar and A. Chaman (personal guarantors). Receiver has instructed counsel (Gowling) to render a security opinion, currently pending. · page: 7 · as of: 2025-11-04 (Date of Appointment) · amount: 1579376.13 · debtor: 12870428 Canada Inc., 15223873 Canada Inc., 15224705 Canada Inc., 15224721 Canada Inc. · creditor: Royal Bank of Canada · currency: CAD · security: General security agreements and security agreements (chattel mortgages) from each Debtor, registered under the PPSA (Ontario); PPSA search confirms RBC is the only registered secured creditor against the Debtors
- secured creditorsnote: Listed as a potential priority claim (deemed trust class) that may rank ahead of the RBC Secured Debt; amount stated as 'Unknown'. Receiver has requested access to CRA accounts to determine if the Debtors are current on pre-filing sales tax/payroll remittances. Not a PPSA-registered secured creditor (PPSA search confirms RBC is the only registered secured creditor). · page: 7 · as of: 2025-11-04 (Date of Appointment) · debtor: 12870428 Canada Inc., 15223873 Canada Inc., 15224705 Canada Inc., 15224721 Canada Inc. · creditor: Canada Revenue Agency · currency: CAD