Ontario · CCAA
Fifth Report of the Monitor
Court officer report · 21 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 filing10 verified
- secured creditorsnote: Footnote states Mr. Burdzy is both a secured creditor and the Chief Executive Officer of the Applicant (related party); also the Investor under the Subscription Agreement (stalking horse bid). Amount and security not stated in this report. · page: 3 · debtor: Freshstone Brands Inc. · creditor: Mr. Frank Burdzy · currency: CAD
- secured creditorsnote: Facility limit only; outstanding drawn balance not stated. Applicant confirmed an Event of Default under the DIP Credit Agreement on October 21, 2026 (Permitted Variance exceeded two consecutive weeks); waiver requested, none provided as at the report date. · page: 3 · debtor: Freshstone Brands Inc. · creditor: Garrington Financial Services Inc. (DIP Lender) · currency: CAD · security: DIP Credit Agreement dated as of June 8, 2026; DIP Lender agreed to advance up to $7 million (facility limit, not an outstanding balance); advances restricted by a borrowing base calculation
- unsecured creditorsnote: Post-filing liabilities incurred during the CCAA Proceedings, not pre-filing unsecured claims. Of the total, $1,414,975 is past due. Individual creditors not named in this report. · page: 6 · as of: 2026-10-17 · basis: Schedule of aged post-filing accounts payable as at October 17, 2026, received by the Monitor on October 20, 2026 · amount: 2050958 · debtor: Freshstone Brands Inc. · creditor: Post-filing accounts payable creditors (125 creditors, aggregate) · currency: CAD
- operational summaryThe Applicant has suffered a material reduction in actual and projected sales from lost customers, lower order volumes and an inability to source raw materials due to cash constraints. It has been unable to pay certain post-filing liabilities, is in an Event of Default under the DIP Credit Agreement, and there is significant uncertainty whether the stalking-horse Transactions will close.
- purchaserMr. Frank Burdzy
- report date21 October 2026
- report noFifth Report
- sale advisorGlassRatner Advisory Canada Inc.
- sale outcometext: The Court approved the Subscription Agreement and the Transactions by the ARVO on October 14, 2026; the Monitor reports significant uncertainty as to whether the Transactions will close and the Investor has declined to confirm he will complete by the Outside Date. · scope: whole_business · status: approved
- stalking horseMr. Frank Burdzy