Ontario · CCAA
Application Record of the Applicant - Volume 2 of 4 - Final.pdf
Application / notice of application · 8 March 2019
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 filing6 verified
- financial positionnote: Liabilities figure of ~$1.4 billion is stated as 'non-contingent liabilities' and explicitly EXCLUDES the QCA Judgment (moral damages of ~$6.8 billion, aggregate value ~$15.5 billion including interest as of the 2015 Judgment date) and litigation-related contingent liabilities (HCCR Actions). Deponent states total secured and unsecured obligations including the QCA Judgment 'greatly exceed' the expected realizable value of JTIM's assets, and JTIM is insolvent in the restructuring sense. · page: 37 · as at: 2018-12-31 · basis: book value; per JTIM's interim quarterly financial statements for the quarter ended December 31, 2018 (unaudited) · scope: JTI-Macdonald Corp. (JTIM) entity-level (non-consolidated; includes a $1.2 billion equity investment in subsidiary TM at book value) · currency: CAD · total assets: 1890561000 · total liabilities: 1433924000
- secured creditorsnote: Related party: TM is JTIM's subsidiary yet holds secured debt against JTIM ('TM Term Debentures'). TM is in receivership; the debenture is now under control of the TM Receiver appointed by ParentCo. Figure is book-value balance per JTIM's Dec 31, 2018 balance sheet (non-contingent liabilities), majority of JTIM's total liabilities. · page: 38 · as of: 2018-12-31 · amount: 1183326000 · debtor: JTI-Macdonald Corp. (JTIM) · creditor: JTI-Macdonald TM Corp. ("TM") · currency: CAD · security: Secured convertible debenture payable to subsidiary (Convertible Debenture Subscription Agreement dated November 23, 1999, original aggregate principal $1,200,000,000, issued by JTIM under its former name 'JT Nova Scotia Corporation' to Subscriber JTI-Macdonald TM Corp.; amended August 3, 2017 and December 23, 2014)
- secured creditorsnote: Related party: ParentCo (JTIM's ultimate parent) identified as one of JTIM's secured creditors affected by the proposed Administration Charge and ranking ahead of the Directors' Charge; ParentCo also separately controls the TM Receiver and holds ~$1.0 billion secured debt against TM (a different debtor). · page: 43 · debtor: JTI-Macdonald Corp. (JTIM) · creditor: ParentCo · currency: CAD · security: Existing security granted by JTIM in favour of ParentCo (nature/amount not specified in reviewed pages)
- secured creditorsnote: Named collectively only; identified as secured creditors of JTIM affected by, and supporting, the proposed Administration Charge. No individual names or amounts stated. · page: 43 · debtor: JTI-Macdonald Corp. (JTIM) · creditor: Certain other secured related-party suppliers · currency: CAD · security: Unspecified security granted to related-party suppliers
- secured creditorsnote: No dollar cap or balance stated in the agreement; security is a blanket pledge of a specific deposit account. · page: 101 · as of: 2016-11-18 · debtor: JTI-Macdonald Corp. (JTIM) · creditor: Citibank Canada · currency: CAD · security: Cash Collateral Agreement dated November 18, 2016 - general and continuing security interest/first priority pledge over Collateral Account (deposit account) securing Liabilities arising from Corporate Card Facility/Corporate Card Line services
- secured creditorsnote: No dollar cap or balance stated in the agreement; security is a blanket pledge of a specific deposit account. · page: 109 · as of: 2017-02-24 · debtor: JTI-Macdonald Corp. (JTIM) · creditor: Citibank, N.A., Canadian Branch · currency: CAD · security: Cash Collateral Agreement dated February 24, 2017 - general and continuing security interest/first priority pledge over Collateral Account securing Liabilities arising from ACH Services