British Columbia · Receivership (court-appointed)
First Report of the Receiver dated February 9, 2024
Court officer report · 9 February 2024
What we verified from this filing3 verified
- secured creditorsnote: Receiver determined no residual equity value in the equipment after accounting for remaining lease payout amounts; if CWB's security is confirmed valid, Receiver intends to disclaim its interest in the equipment. No balance amount stated in document. · page: 12 · debtor: PolyCan Health Centre (Canada) Inc. · creditor: PPSA equipment financiers (PMSI class) - CWB National Leasing · currency: CAD · security: Purchase money security interests registered under the PPSA over a Cynosure ICON laser therapeutic machine and various security system equipment (finance leases)
- secured creditorsnote: Deemed trust class. CRA has not yet submitted any property claims; Receiver is aware of outstanding employee payroll source deductions (referred to in document as relating to 'September and November 2024') amounting to approximately $2,000 to $3,000 (the 'Potential CRA Deemed Trust Claim'). CRA has not yet conducted a payroll or GST audit and additional liabilities may be assessed; GST liability status also under investigation (no GST return filed since July 2020, amount unstated). · page: 12 · debtor: PolyCan Health Centre (Canada) Inc. · creditor: Canada Revenue Agency (CRA) · currency: CAD
- secured creditorsnote: Prose in report states BMO owed 'approximately $4.5 million' as at February 6, 2024; exact dated balance of $4,502,381 as at same date is used here. Security Opinion from Receiver's counsel (DLA) confirms security valid, enforceable and ranking in priority to unsecured creditors. BMO Security is subject to prior-ranking Court-ordered Receiver's Charge and Receiver's Borrowing Charge and certain deemed trust/priority claims. Personal guarantees exist from company directors/shareholders (a married couple, related parties) and from other individual shareholders, each capped as noted; individual names omitted per convention. BMO expected to suffer a deficiency/shortfall on its debt following the Transaction. · page: 13 · as of: 2024-02-06 · amount: 4502381 · debtor: PolyCan Health Centre (Canada) Inc. · creditor: Bank of Montreal (BMO) · currency: CAD · security: General Security Agreement dated April 26, 2018 over all present and after-acquired real and personal property (the 'BMO Facilities'/'BMO Security'); personal guarantees limited to $2,550,000 plus interest and $2,450,000 plus interest respectively