Alberta · Receivership (court-appointed)
First Report of the Receiver (dated April 24, 2018)
Court officer report · 24 April 2018
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 filing7 verified
- unsecured creditorsnote: Estimated range only, not a single amount: API owes between $90,000 and $100,000, consisting of pre-receivership GST of approximately $25,000 and unpaid source deductions of approximately $70,000. No GST returns filed for 8 consecutive months before the Receivership Date; no source deductions paid since November 2017. Final CRA audit results pending; book value table carries $100,000. · page: 7 · as of: 2018-04-12 (CRA preliminary review) · basis: CRA preliminary audit review; deemed trust / priority claim (potential priority claim) · debtor: Advantage Products Inc. · creditor: Canada Revenue Agency (GST and source deductions) · currency: CAD
- unsecured creditorsnote: Total WEPP claims received approximately $8,750; preferred/super-priority class. · page: 7 · basis: WEPP claims received by Receiver; approximately $3,700 is a super-priority claim the Receiver will be required to pay to Service Canada · amount: 3700 · debtor: Advantage Products Inc. · creditor: Service Canada / former employees (WEPP, s.81.4(1) BIA super-priority) · currency: CAD
- financial positionnote: Assets: accounts receivable $890,270; inventory $497,549; property, plant and equipment $636,682; antique and recreational vehicles nil; patents and intangibles unknown. Liabilities: HSBC operating loan $693,000; other financing loans $92,598; GST and source deductions $100,000; accounts payable and accrued liabilities $683,089. Books and records were not up to date (several controllers came and went) and the Receiver believes liabilities are significantly understated. Cash on hand held by Receiver approximately $945,987 at April 16, 2018 (opening cash $338,852). · page: 8 · as at: 2018-02-07 · basis: Estimated net book value per the Receiver, based on API's books and records at the Receivership Date; unaudited and not otherwise verified; realizable values may differ significantly · scope: Advantage Products Inc. only (not consolidated) · currency: CAD · total assets: 2024501 · total liabilities: 1568687
- secured creditorsnote: Shown as 'Other Financing loans' in the estimated book value table (unaudited, per books and records); lenders not named and security not described. Receiver contacted financing/leasing agents regarding leased vehicles; leased assets were excluded from the auction offer. Not stated to be secured, so classification is an inference from the report's treatment of these as financing loans. · page: 8 · as of: 2018-02-07 · amount: 92598 · debtor: Advantage Products Inc. · creditor: Other financing lenders (leased/financed vehicles and equipment) · currency: CAD
- unsecured creditorsnote: Claim amount not stated; asserted, not adjudicated. Pre-receivership royalty claims (Doyle and other Licensors) to be addressed through the proposed claims procedure; post-receivership royalties from the Receiver's use of the License to be honoured. API also gave an Indemnity Agreement (January 16, 2014) to the Licensors regarding litigation commenced by API. · page: 11 · basis: Asserted by Mr. Doyle's counsel; royalty payments under the License Agreement and legal fees from an arbitration with API · debtor: Advantage Products Inc. · creditor: John Doyle (licensor, Torqstopper Patent License Agreement) · currency: CAD
- unsecured creditorsnote: Document names no individual unsecured creditors. Receiver believes liabilities are significantly understated and total indebtedness will be significantly greater than recorded in the financial statements; claims process proposed (Claims Bar Date May 31, 2018). Receiver expects unsecured creditors would be paid a portion but not all of amounts owed. · page: 16 · as of: date of Receiver's Notice (February 16, 2018) · basis: Receiver's report: approximately 44 unsecured creditors with debt totalling approximately $683,000 who were given notice of the Receivership; book figure 'Accounts payables and accrued liabilities' $683,089 at Feb 7, 2018, unaudited · amount: 683000 · debtor: Advantage Products Inc. · creditor: Unsecured creditors (aggregate as reported) · currency: CAD
- secured creditorsnote: Amount is the report's approximation ("approximately $700,000") of all indebtedness owed to HSBC, used for the proposed interim distribution; HSBC operating loan shown at $693,000 estimated book value as at Feb 7, 2018 (Receivership Date). Company entered a Forbearance Agreement with HSBC in October 2016 and defaulted on ratio and reporting covenants. HSBC is the first/senior secured creditor and supports the sale. Security opinion confirmed (not pending). · page: 22 · as of: approximately April 2018 (proposed interim distribution date) · amount: 700000 · debtor: Advantage Products Inc. · creditor: HSBC Bank Canada · currency: CAD · security: Security reviewed by Receiver's counsel (Fasken): valid and enforceable against API; appears to be a first priority charge against the Property (Alberta PPR search).