Alberta · CCAA
Pre-Filing Report of the Proposed Monitor (August 19, 2025)
Pre-filing report · 19 August 2025
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What we verified from this filing10 verified
- financial positionnote: Attached as Appendix B ('Most Recent Financial Statements (2023)') to the Pre-Filing Report; separately, the Pre-Filing Report states FY2024 statements have not been finalized and the Proposed Monitor believes 2025 YTD losses are 'significantly understated' given the Companies' books and records are not up to date. · page: 19 · as at: 2023-12-31 · basis: Compiled (unaudited) combined financial information prepared under CSRS 4200 Compilation Engagement standard; no audit or review performed, no assurance expressed; 'readers are cautioned that the combined financial information may not be appropriate for their purposes' · scope: Combined (not consolidated) balance sheet of five entities only — 1175104 B.C. Ltd., 1272986 B.C. Ltd., Summit S Auto Ltd., Summit V Auto Ltd., and 2345137 Alberta Ltd. (referred to as the 'Koch - BMO banking group') — a subset of the 11 Debtor entities in these CCAA proceedings; excludes 1262113 B.C. Ltd., 2351497 Alberta Ltd., 2497902 Alberta Ltd., MK Auto K-M Ltd., 1972207 Alberta Ltd. and 2437342 Alberta Ltd. · currency: CAD · total assets: 42017934 · total liabilities: 40953187
- secured creditorsnote: Exact dated 'Loans Indebtedness' balance per Art. 2.1(a)(iv) of Omnibus Forbearance Agreement. Also guarantees group debt ('Guarantees Indebtedness' $49,899,767.77 as of same date), a contingent/guarantor exposure, not additional principal. · page: 58 · as of: 2025-03-12 · amount: 147785.96 · debtor: 1262113 B.C. Ltd. (Western Sport Products) · creditor: Bank of Montreal (BMO) · currency: CAD · security: General security agreement dated May 23, 2024 (Schedule A, Omnibus Forbearance Agreement); cross-guaranteed by affiliated Summit Auto Group entities
- secured creditorsnote: Exact dated 'Loans Indebtedness' balance per Art. 2.1(a)(iv). Also guarantees group debt ('Guarantees Indebtedness' $44,908,516.76 as of same date), contingent exposure. · page: 58 · as of: 2025-03-12 · amount: 5139036.97 · debtor: 1272986 B.C. Ltd. (Sun Valley Nissan) · creditor: Bank of Montreal (BMO) · currency: CAD · security: General security agreement dated March 10, 2021, plus chattel mortgage (PPSA) over Cranbrook property (Schedule A); cross-guaranteed by affiliated entities
- secured creditorsnote: Exact dated 'Loans Indebtedness' balance per Art. 2.1(a)(iv). Also guarantees group debt ('Guarantees Indebtedness' $41,149,800.70 as of same date), contingent exposure. · page: 58 · as of: 2025-03-12 · amount: 8897753.03 · debtor: 2345137 Alberta Ltd. (Vermilion Chrysler) · creditor: Bank of Montreal (BMO) · currency: CAD · security: General security agreement dated June 19, 2021 (misnumbered '23415137' in signature line, confirmed valid/binding); mortgage dated Aug 4, 2021 on 4524 Railway Avenue, Vermilion, AB ($1,285,000 principal); assignment of rents; cross-guaranteed
- secured creditorsnote: Exact dated 'Loans Indebtedness' balance per Art. 2.1(a)(iv). Also guarantees group debt ('Guarantees Indebtedness' $48,822,553.73 as of same date), contingent exposure. Document notes an inadvertent guarantee/term-sheet naming error involving this entity, confirmed still valid and binding. · page: 58 · as of: 2025-03-12 · amount: 1225000 · debtor: 2351497 Alberta Ltd. ("235 AB") · creditor: Bank of Montreal (BMO) · currency: CAD · security: General security agreement dated December 20, 2022 (Schedule A); cross-guaranteed by affiliated entities
- secured creditorsnote: Exact dated 'Loans Indebtedness' balance per Debtors' acknowledgement in Omnibus Forbearance Agreement (Art. 2.1(a)(iv)); continues to accrue interest/fees/costs. This entity also guarantees the group's debt to BMO ('Guarantees Indebtedness' $46,006,838.03 as of the same date) — contingent guarantor exposure, not additional principal. · page: 58 · as of: 2025-03-12 · amount: 4040715.7 · debtor: 1175104 B.C. Ltd. (Cranbrook Mitsubishi) · creditor: Bank of Montreal (BMO) · currency: CAD · security: General security agreement (all-property) dated November 27, 2020, plus real property/chattel mortgages and assignments of rents (Schedule A, Omnibus Forbearance Agreement); cross-guaranteed by affiliated Summit Auto Group entities
- secured creditorsnote: Exact dated 'Loans Indebtedness' balance per Art. 2.1(a)(iv). Also guarantees group debt ('Guarantees Indebtedness' $32,841,999.57 as of same date); secured additionally by a Limited personal guarantee dated Nov 27, 2020 from Michael Koch. The Pre-Filing Report separately states that, on a cumulative basis, the full Debtor group (all 11 Summit Auto Group entities, including Squamish Chrysler/197 AB not covered by this Schedule) owed BMO 'in excess of $58 million' net of accrued costs and interest as of August 12, 2025 — a later, group-wide floor figure superseding these March 2025 per-entity amounts. · page: 58 · as of: 2025-03-12 · amount: 17205554.16 · debtor: Summit S Auto Ltd. ("Real Co") · creditor: Bank of Montreal (BMO) · currency: CAD · security: General security agreement dated November 27, 2020; multiple real property mortgages (incl. Pincher Creek, Mannville, Cranbrook properties) and assignments of rents/leases in favour of BMO (Schedule A); cross-guaranteed by affiliated entities
- secured creditorsnote: Exact dated 'Loans Indebtedness' balance per Art. 2.1(a)(iv). Also guarantees group debt ('Guarantees Indebtedness' $43,959,248.14 as of same date), contingent exposure. · page: 58 · as of: 2025-03-12 · amount: 6088305.59 · debtor: Summit V Auto Ltd. (Arrow Volkswagen) · creditor: Bank of Montreal (BMO) · currency: CAD · security: General security agreement dated November 27, 2020; chattel mortgage (PPSA) over Cranbrook property; cross-guaranteed by affiliated entities
- secured creditorsnote: Exact dated 'Loans Indebtedness' balance per Art. 2.1(a)(iv). Also guarantees group debt ('Guarantees Indebtedness' $42,744,151.41 as of same date). Additionally secured by a Limited personal guarantee dated May 19, 2023 from Michael Koch (principal/owner) — personal guarantee exists, amount not separately itemized here. · page: 58 · as of: 2025-03-12 · amount: 7303402.32 · debtor: 2497902 Alberta Ltd. (Castle Ford) · creditor: Bank of Montreal (BMO) · currency: CAD · security: General security agreement dated May 19, 2023; chattel mortgage (PPSA); mortgages on 1050 Corner Mountain St. ($7,600,000 principal) and 1104 Chief Mountain Ave. ($1,010,000 principal), Pincher Creek, AB; assignments of rents; cross-guaranteed
- secured creditorsnote: Non-operating holding/guarantor entity with no direct facility ('Loans Indebtedness'); amount shown is its stated 'Guarantees Indebtedness' as of March 12, 2025, representing its guarantee of the Summit Auto Group's indebtedness to BMO. · page: 59 · as of: 2025-03-12 · amount: 50047553.73 · debtor: MK Auto K-M Ltd. · creditor: Bank of Montreal (BMO) · currency: CAD · security: General security agreement dated November 27, 2020, from MK Auto K-M Ltd. (Schedule A, Omnibus Forbearance Agreement)