Ontario · Receivership (court-appointed)
Application Record to Appoint a Receiver (Returnable April 14, 2025)
Application / notice of application · 31 March 2025
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 filing13 verified
- applicantNational Bank of Canada
- commencement date31 March 2025
- courtSUPERIOR COURT OF JUSTICE
- court file noCV-25-00740078-00CL
- proceeding typereceivership_court
- statutory basissubsection 243(1) of the Bankruptcy and Insolvency Act and section 101 of the Courts of Justice Act
- statutory basisSUBSECTION 243(1) OF THE BANKRUPTCY AND INSOLVENCY ACT, R.S.C. 1985, c. B-3, AS AMENDED, AND SECTION 101 OF THE COURTS OF JUSTICE ACT, R.S.O. 1990, c. C.43, AS AMENDED
- appointeeErnst & Young Inc.
- appointee roleProposed Receiver
- secured creditorsnote: Registration subsequent in time to National Bank of Canada's registration; amount not stated. · page: 15 · debtor: Delviro Inc. · creditor: HMT Holdings Inc. · currency: CAD · security: PPSA registration against the Debtor's accounts
- secured creditorsnote: The Bank of Nova Scotia's registration is stated to be the only prior-ranking registration (ranks ahead of National Bank of Canada's GSA registration); GTA Motorcars Inc.'s registrations are subsequent in time to National Bank's registration. Amounts not stated in the document. · page: 15 · debtor: Delviro Inc. · creditor: PPSA equipment financiers (PMSI class) - GTA Motorcars Inc. and The Bank of Nova Scotia · currency: CAD · security: PPSA registrations against particular (serialized) motor vehicles: GTA Motorcars Inc. holds three registrations against particular motor vehicles (registered subsequent in time to National Bank of Canada's registration); The Bank of Nova Scotia holds one registration against a particular motor vehicle
- secured creditorsnote: Amount is outstanding balance under the Offer of Financing (facilities: $3,000,000 line of credit, $2,000,000 term loan, $200,000 global net risk line, $100,000 Mastercard - these are facility limits, not balances), plus accrued interest, costs, and legal fees/disbursements not yet quantified. Also secured by Personal Guarantee of sole officer/director Joseph (Joe) Delonghi dated February 16, 2023, limited to $1,000,000 plus interest (related party guarantor - individual, not a company). Subordination Agreement dated February 16, 2023 subordinates payment of all claims/sums owed by the Debtor to Delonghi to the Lender's claims (Delonghi is a related-party subordinated creditor of unstated amount). · page: 26 · as of: 2025-03-11 · amount: 5008916.71 · debtor: Delviro Inc. · creditor: National Bank of Canada · currency: CAD · security: General Security Agreement dated February 17, 2023 granting security interest over all tangible, intangible, current and after-acquired property and undertaking of the Debtor; PPSA registration made February 24, 2023 against all classes of collateral except 'consumer goods' and 'motor vehicles'; designation as beneficiary of insurance proceeds covering the Property
- financial positionnote: Since September 30, 2024, the Lender states it has had 'no visibility whatsoever' on the Debtor's financial situation. An income statement for October 1 to December 31, 2024 separately showed gross profit of $894,120.21 and total expenses of $699,780.39 (not a balance sheet figure). · page: 37 · as at: 2024-09-30 · basis: Last balance sheet available to the Lender from the Debtor; document states 'the exact same amount is listed for total liabilities plus paying back shareholders equity,' with shareholders' equity of $11,641,531.61 listed as a liability rather than as equity · scope: Delviro Inc. (entity-level; not stated as consolidated) · currency: CAD · total assets: 14879703.08 · total liabilities: 14879703.08