Ontario · Receivership (court-appointed)
First Report of the Receiver (without appendices) – Dated October 14, 2026
Court officer report · 14 October 2026
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 filing21 verified
- secured creditorsnote: Senior secured lender. Stated as 'in excess of $7,199,078' — a floor, operative words 'in excess of'; continues to accrue costs and interest. ARK also invested in excess of $1.9 million in FSI common shares (equity, not debt). Receiver states realizations will not be sufficient to retire the ARK Indebtedness. · page: 7 · as of: 2026-09-30 · amount: 7199078 · debtor: Formula Solutions Inc. · creditor: ARK Capital Ltd. · currency: CAD · security: General Security Agreement under Loan Agreement dated October 14, 2023, assigned by Service365 Inc. to ARK by Assignment dated January 18, 2025; PPSA registrations 20221013 and 20250220 (Service365 as assignor). Independent Security Opinion confirms security valid and enforceable, subject to customary assumptions and qualifications.
- secured creditorsnote: Amount not stated. · page: 10 · debtor: Formula Solutions Inc. · creditor: Citibank, N.A., its Branches, Subsidiaries and Affiliates · currency: CAD · security: PPSA registration 20230901 (reference file 796831191)
- secured creditorsnote: Amount not stated; Rohr is FSI's former major customer (Collins). Collins-owned tooling was released under a settlement and release agreement dated August 8, 2025. · page: 10 · debtor: Formula Solutions Inc. · creditor: Rohr, Inc. (Collins Aerospace division) · currency: CAD · security: PPSA registration 20240830 (reference file 508714965)
- secured creditorsnote: Amount not stated. Receiver released Xerox-related third-party equipment subject to its security interest. · page: 13 · debtor: Formula Solutions Inc. · creditor: Xerox Canada Ltd. · currency: CAD · security: PPSA registration 20240422 (reference file 504642753); security over certain assets (equipment)
- secured creditorsnote: Amount not stated; Receiver released the equipment. Not shown in the PPSA table on page 10. · page: 13 · debtor: Formula Solutions Inc. · creditor: Toyota · currency: CAD · security: Secured creditor over certain assets of FSI (third-party equipment subject to security interest)
- secured creditorsnote: Amount not stated; Receiver released the equipment. Not shown in the PPSA table on page 10. · page: 13 · debtor: Formula Solutions Inc. · creditor: Temperature Corporation · currency: CAD · security: Secured creditor over certain assets of FSI (third-party equipment subject to security interest)
- unsecured creditorsnote: Amount not stated. Air Solutions acknowledged the Receiver's position. The Compressor was sold at auction. · page: 13 · basis: Receiver's view that its arrangement for the Compressor was a financing agreement with no PPSA registration, so Air Solutions 'appears to have an unsecured claim' · debtor: Formula Solutions Inc. · creditor: Air Solutions Canada Inc. · currency: CAD
- unsecured creditorsnote: Claim asserted, not adjudicated. Receiver advised Cold Jet's counsel there are no anticipated recoveries to unsecured creditors. · page: 14 · as of: 2025-10-01 · basis: Principal claim amount in Small Claims Court claim dated October 1, 2025 (Burlington Small Claims Court, File SC-35-00001176-0000); order dated January 26, 2026 permitted service on FSI · amount: 26668.37 · debtor: Formula Solutions Inc. · creditor: Cold Jet LLC · currency: CAD
- secured creditorsnote: Regulatory/employment-standards claim (termination and severance owing to employees terminated in 2024, payable to the Director of Employment Standards). The Garnishment letter dated May 22, 2025 was cancelled by the MOF on May 28, 2025 (Cancellation of Requirement to Pay) after the stay and WEPP administration; the PPSA registration remains on the search report. Amount stated as $1.698 million. · page: 15 · as of: 2025-05-22 · amount: 1698000 · debtor: Formula Solutions Inc. · creditor: His Majesty in right of Ontario (Minister of Finance) — on behalf of Ministry of Labour · currency: CAD · security: PPSA registration 20250429 in the principal amount of the full Garnishment Amount; registered after ARK's PPSA registrations.
- unsecured creditorsnote: Confirmed by CRA trust examination (Sept. 11, 2025): the approximately $5,300 relates to an unallocated carryover from a prior tax year; no deemed trust amount owing. No pre-receivership HST arrears assessed. · page: 16 · as of: 2025-05-28 · basis: CRA letter dated May 28, 2025; balance approximately $5,300, classified by CRA as unsecured with no deemed trust portion · amount: 5300 · debtor: Formula Solutions Inc. · creditor: Canada Revenue Agency — payroll tax balance · currency: CAD
- unsecured creditorsnote: Claim is for unpaid interest on the $800,000 Haas SRED Loan Agreement dated March 12, 2024; principal was repaid in full on November 8, 2024. No written agreements with HSBC or Service365 and no security granted to Haas known to the Receiver. Related party (former director); amount is the claim as filed, not adjudicated. · page: 17 · basis: Unsecured proof of claim filed in the FSI bankruptcy (Haas Claim); Receiver's position is that Haas is an unsecured creditor · amount: 62697.95 · debtor: Formula Solutions Inc. · creditor: David Haas (former director) · currency: CAD
- cash on handnote: Closing cash balance in the receivership estate as at October 9, 2026. · as at: 2026-10-09 · amount: 1705098 · currency: CAD · qualifier: approximately
- closing confirmedscope: the Purchased Assets under the Auction Services Agreement · outcome: completed · purchaser: Corporate Assets Inc. · date basis: unstated · approval order date: 2025-05-13
- operational summaryThe debtor ceased operations in December 2024 after losing its major customer, terminated all employees, and the receiver has liquidated substantially all assets through an auction and vacated the premises. The receiver is winding up the estate, proposing a final distribution to the senior secured lender and seeking its discharge.
- professional feesnote: Receiver's fees of $254,704.63 plus disbursements of $5,779.27 and HST of $33,862.91. Legal counsel Aird & Berlis fees for May 13, 2025 to August 31, 2026 are $88,909.19 inclusive of disbursements and HST. Estimated fees to completion are $30,000.00 for the Receiver and $30,000.00 for Aird & Berlis, plus disbursements and HST, in addition to the amounts above. · party: Receiver (Bricks Damiani Inc.) · amount: 294346.81 · period: May 13, 2025 to September 30, 2026 · currency: CAD
- purchaserCorporate Assets Inc.
- recovery outcomeentries: basis: estimated · quote: The realizations in the receivership estate will not be sufficient to retire the ARK Indebtedness, with the result being that there will be no recovery available to the unsecured creditors of FSI. · pct of: unstated · outcome: nil · class key: unsecured · stated by: receiver · class label: unsecured creditors of FSI · interim final: unstated · claims qualifier: unstated · stated on: 2026-10-14 · table missing:
- report date14 October 2026
- report noFirst Report
- sale advisorCorporate Assets Inc.
- sale outcometext: The Transaction under the Auction Services Agreement closed; the auction was held on June 25, 2025, and machinery and equipment were removed by mid-August 2025. · scope: liquidation · status: closed