Ontario · Receivership (court-appointed)
Application Record of Royal Bank of Canada dated May 27, 2024 - Part 1
Application / notice of application · 27 May 2024
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 filing16 verified
- applicantROYAL BANK OF CANADA
- courtSUPERIOR COURT OF JUSTICE
- court file noCV-24-00085778-0000
- statutory basisBankruptcy and Insolvency Act, s 243(1); Courts of Justice Act, s101
- secured creditorsnote: Named as served party to the application, consistent with affidavit's reference to a PPSA Search listing secured creditors aside from RBC; amount not stated. · page: 2 · as of: PPSA Search dated December 21, 2023 · debtor: EA Logistics Inc. · creditor: House of Tire Corp · currency: CAD · security: PPSA registration (type/collateral not detailed in application record excerpt provided)
- secured creditorsnote: Named as served party to the application, consistent with affidavit's reference to a PPSA Search listing secured creditors aside from RBC; amount not stated. · page: 2 · as of: PPSA Search dated December 21, 2023 · debtor: EA Logistics Inc. · creditor: Finloc 2000 Inc. · currency: CAD · security: PPSA registration (type/collateral not detailed in application record excerpt provided)
- secured creditorsnote: Named as served party to the application, consistent with affidavit's reference to a PPSA Search listing secured creditors aside from RBC; amount not stated. · page: 2 · as of: PPSA Search dated December 21, 2023 · debtor: EA Logistics Inc. · creditor: Day & Night Truck Repair Centre Ltd. · currency: CAD · security: PPSA registration (type/collateral not detailed in application record excerpt provided)
- secured creditorsnote: Named as served party to the application, consistent with affidavit's reference to a PPSA Search listing secured creditors aside from RBC; amount not stated. · page: 2 · as of: PPSA Search dated December 21, 2023 · debtor: EA Logistics Inc. · creditor: A2Z Truck Centre Ltd. · currency: CAD · security: PPSA registration (type/collateral not detailed in application record excerpt provided)
- appointeemsi Spergel inc.
- appointee roleReceiver
- secured creditorsnote: Aggregates iTruck Financial Inc., CWB National Leasing Inc., Daimler Truck Financial Services Canada Corporation, LBel Inc., and Coast Capital Equipment Finance Ltd., each served as parties to the application, consistent with the affidavit's statement (para 15) that the PPSA Search lists a number of secured creditors aside from RBC; individual amounts not stated in the pages provided. · page: 3 · as of: PPSA Search dated December 21, 2023 · debtor: EA Logistics Inc. · creditor: PPSA equipment financiers (PMSI class) · currency: CAD · security: PPSA registrations (equipment/leasing financing, apparent PMSI class); specific collateral and amounts not detailed in the application record excerpt provided
- secured creditorsnote: Named as served party to the application; affidavit para 15 states the Bank Act search does not disclose any registrations against the Debtor, so Bank Act security is not confirmed; possible PPSA registration basis for service not detailed in materials provided. · page: 3 · as of: PPSA Search dated December 21, 2023 · debtor: EA Logistics Inc. · creditor: Bank of Montreal · currency: CAD · security: PPSA registration (type/collateral not detailed in application record excerpt provided); Bank Act search disclosed no registrations against the Debtor
- commencement date24 May 2024
- secured creditorsnote: Total Indebtedness stated in demand letter dated January 3, 2024 (Exhibit I) as $1,779,552.29 CDN and $16,697.46 US, as of January 2, 2024 (components in two currencies, not summed). Credit Agreement dated June 7, 2023 (amending/restating agreements dated Jan 4, 2022, June 13, 2022 and Dec 28, 2022) provided facility limits (not balances) of a revolving demand facility of $1,650,000 and a business credit card facility of up to $200,000. Personal guarantees noted; individual guarantors are Muhammad Usman and Khurram Shahzad (co-Presidents of Debtor, later replaced as directors after unapproved share sale). · page: 23 · as of: 2024-01-02 · debtor: EA Logistics Inc. · creditor: Royal Bank of Canada · currency: CAD · security: General Security Agreement dated January 7, 2022 (first-ranking security interest in all present, future and after-acquired personal property); Guarantee and Postponement of Claim dated December 28, 2022 in the amount of $1,320,000 (Muhammad Usman and Khurram Shahzad, joint and several, related parties/co-Presidents); Guarantee and Postponement of Claim dated June 6, 2023 in the amount of $1,850,000 (same guarantors, joint and several); Postponements and Assignments of Claims dated January 7, 2022 from Usman and Shahzad
- secured creditorsnote: Affidavit states Debtor appears in default of equipment financing obligations with Bennington; collateral also subject to RBC's GSA; Notice of Intention to dispose of collateral dated February 6, 2024 (Exhibit L); specific claim amount not stated in materials provided. · page: 24 · as of: Notice of Intention dated February 6, 2024 · debtor: EA Logistics Inc. · creditor: Bennington Financial Corp. · currency: CAD · security: Purchase money security interest (PMSI) - equipment financing over transport trucks/trailers
- secured creditorsnote: Affidavit states Debtor appears in default of equipment financing obligations with Meridian; collateral also subject to RBC's GSA; Notice of Intention to dispose of collateral dated January 31, 2024 (Exhibit L); specific claim amount not stated in materials provided. · page: 24 · as of: Notice of Intention dated January 31, 2024 · debtor: EA Logistics Inc. · creditor: Meridian OneCap Credit Corp. · currency: CAD · security: Purchase money security interest (PMSI) - equipment financing over transport trucks/trailers