Ontario · Proposal
Trustee's Report on Proposal dated January 30, 2025.pdf
Court officer report · 30 January 2025
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What we verified from this filing15 verified
- appointeeGrant Thornton Limited
- appointee roleTrustee in Bankruptcy
- courtSUPERIOR COURT OF JUSTICE
- court file no31-2989298
- provinceONTARIO
- statutory basisSections 58 and 59 of the Bankruptcy and Insolvency Act
- unsecured creditorsnote: Deemed trust claim, ranks in priority to Company's creditors generally; classified separately as its own class under Amended Proposal (Article 3.2); Amended Proposal provides for payment of $1,750,000 towards this claim over 24 months (~69% of claim) · page: 5 · as of: November 5, 2024 (Amended Proposal filing / Date of Initial Filing basis) · basis: As reported by Proposal Trustee at creditors' meeting on Amended Proposal · amount: 2515371 · debtor: Hancon Construction Co. Ltd. · creditor: CRA (Canada Revenue Agency) - deemed trust claim (unpaid employee source deductions) · currency: CAD
- unsecured creditorsnote: Distinct from the Statement of Affairs aggregate unsecured figure of $1,478,436.16 as at September 21, 2023; this is the amount of proofs filed and voted, approximately stated · page: 5 · as of: November 25, 2024 (meeting of creditors on Amended Proposal) · basis: Proofs of claim filed with voting letters as reported by Proposal Trustee · amount: 1667056 · debtor: Hancon Construction Co. Ltd. · creditor: Voting Creditors (2 proofs of claim with voting letters, unsecured) · currency: CAD
- secured creditorsnote: Company remained current on payments as at Sept 21, 2023 · page: 46 · as of: September 21, 2023 · debtor: Hancon Construction Co. Ltd. · creditor: Equipment lessor (one equipment lease) · currency: CAD · security: PPSA equipment financiers (PMSI class) - equipment lease
- secured creditorsnote: Aggregated per rule 5; Company remained current on payments as at Sept 21, 2023; Statement of Affairs lists secured claims at $4 aggregate (nominal); Proposal does not compromise secured creditors · page: 46 · as of: September 21, 2023 · debtor: Hancon Construction Co. Ltd. · creditor: Vehicle lessors (four vehicle leases) · currency: CAD · security: PPSA equipment financiers (PMSI class) - vehicle leases
- unsecured creditorsnote: Document names no individual unsecured creditors; total liabilities per SOA were $1,478,441.16 (secured $4 + preferred $1 + unsecured $1,478,436.16); later 2 proofs of claim with voting letters totaled approximately $1,667,056 · page: 46 · as of: September 21, 2023 · basis: Statement of Affairs as reported · amount: 1478436.16 · debtor: Hancon Construction Co. Ltd. · creditor: Unsecured creditors (aggregate as reported in sworn Statement of Affairs) · currency: CAD
- financial positionnote: Asset table: Accounts Receivable $1, Machinery and equipment $324,001, Real property $50,000, Vehicles $36,522, Miscellaneous assets $34,200, Total $444,724; Liabilities per SOA: Secured $4, Preferred $1, Unsecured $1,478,436.16, Total $1,478,441.16; Proposal Trustee views combined assets/liabilities and fair value as reasonable and reflective of Company's financial circumstances · page: 47 · as at: 2023-09-21 · basis: Statement of Affairs (sworn), fair realizable value estimated by Proposal Trustee exclusive of realization costs · scope: Hancon Construction Co. Ltd. (entity only, not consolidated with related party Hancon Mining Division Inc.) · currency: CAD · total assets: 444724 · total liabilities: 1478441.16
- unsecured creditorsnote: Preferred claim class; Statement of Affairs lists 'Preferred' at nominal $1; Company advised Trustee of potential CRA claim for unremitted source deductions, believed payments exceeding $382,000 have been allocated to source deduction account; CRA later asserted deemed trust claim of $2,515,371 (see separate deemed trust entry per Trustee's Report to Court) · page: 47 · as of: September 21, 2023 · basis: Statement of Affairs as reported · amount: 1 · debtor: Hancon Construction Co. Ltd. · creditor: CRA (Canada Revenue Agency) - source deductions · currency: CAD
- secured creditorsnote: Company remains current on mortgage payments; remaining balance stated as of report date · page: 48 · as of: date of report (January 30, 2025 Trustee's Report) · amount: 168000 · debtor: Hancon Construction Co. Ltd. · creditor: Vendor take-back mortgagee on Real Property (5825 King Street, South Porcupine, ON) · currency: CAD · security: 100% vendor-take-back mortgage; original advance $350,000
- recovery outcomeentries: basis: plan · quote: based on the circumstances, the Amended Proposal filed by the Company is fair and reasonable as the proposed distribution contemplated under the Amended Proposal is expected to be 69% of CRA's deemed trust claim and approximately 8% of Unsecured Creditor Claims, and where Creditors with Proven Unsecured Creditor Claims would be paid within 8-9 months from the Implementation Date; · pct of: unstated · outcome: distribution · pct low: 69 · pct high: 69 · class key: deemed_trust · stated by: proposal_trustee · class label: CRA's deemed trust claim · creditor name: CRA · interim final: unstated · claims qualifier: unstated; basis: plan · quote: based on the circumstances, the Amended Proposal filed by the Company is fair and reasonable as the proposed distribution contemplated under the Amended Proposal is expected to be 69% of CRA's deemed trust claim and approximately 8% of Unsecured Creditor Claims, and where Creditors with Proven Unsecured Creditor Claims would be paid within 8-9 months from the Implementation Date; · pct of: unstated · outcome: distribution · pct low: 8 · pct high: 8 · class key: unsecured · stated by: proposal_trustee · class label: Unsecured Creditor Claims · interim final: unstated · claims qualifier: unstated; basis: plan · quote: In the Proposal Trustee's view, and based on the circumstances, the Proposal filed by the Company is fair and reasonable as the proposed distribution contemplated under the Proposal is expected to be 71% of the total outstanding indebtedness (and prior to any assessed claim for source deductions), and to be collectively paid to Creditors with Proven Unsecured Claims within 7-10 months from the Implementation Date. · pct of: unstated · outcome: distribution · pct low: 71 · pct high: 71 · class key: unsecured · stated by: proposal_trustee · class label: Creditors with Proven Unsecured Claims · interim final: unstated · claims qualifier: unstated; basis: plan · quote: As set out in this report, if the Proposal is approved, it is expected that Unsecured Creditors (based on the values in the Statement of Affairs, and before any assessed claim for CRA source deductions) will realize a recovery equal to 71% of their proven Unsecured Claims. · pct of: proven_claims · outcome: distribution · pct low: 71 · pct high: 71 · class key: unsecured · stated by: proposal_trustee · class label: Unsecured Creditors · interim final: unstated · claims qualifier: unstated · stated on: 2025-01-30 · table missing: