Ontario · NOI
Proposal Trustee’s First Report to Court dated April 19, 2023
Court officer report · 19 April 2023
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 filing12 verified
- secured creditorsnote: 111Co. provided a limited guarantee of the RBC Debt capped at a maximum of $820,000 (guarantee limit, not a stated balance owing). Secures RBC Debt owed by related party Prosysco Ltd. RBC holds earliest registered financing statement against 111Co. · page: 3 · debtor: 1110615 Ontario Ltd. · creditor: Royal Bank of Canada · currency: CAD · security: General security agreement dated June 16, 2016 (111Co. Security)
- secured creditorsnote: USD revolving credit facility balance, part of combined 'RBC Debt' together with the CAD-denominated balance (see separate CAD entry), plus accrued and accruing interest. · page: 5 · as of: 2023-03-22 · amount: 250000 · debtor: Prosysco Ltd. · creditor: Royal Bank of Canada · currency: USD · security: General security agreement dated June 16, 2016 (Prosysco Security)
- secured creditorsnote: Registration not yet investigated by Proposal Trustee as of date of First Report; amount owing unstated. · page: 5 · as of: 2018-09-19 · debtor: Prosysco Ltd. · creditor: Echelon Insurance · currency: CAD · security: PPSA registration - Inventory, Equipment, Accounts, Other, Motor Vehicle
- secured creditorsnote: Comprises CDN revolving line (~$2.33M), term facilities (~$380K) and credit card facility (~$53K); stated as 'total indebtedness' of approximately $2.76 million CAD as of March 22, 2023, plus accrued and accruing interest. Part of combined 'RBC Debt' (see separate USD entry). RBC declared Prosysco in default on March 22, 2023 and issued Notice of Intention to Enforce Security under s.244 BIA. Favourable independent security opinion obtained from GSNH. · page: 5 · as of: 2023-03-22 · amount: 2760000 · debtor: Prosysco Ltd. · creditor: Royal Bank of Canada · currency: CAD · security: General security agreement dated June 16, 2016 (Prosysco Security); RBC holds earliest registered financing statement
- secured creditorsnote: Governmental/regulatory PPSA registrant; not yet investigated by Proposal Trustee; amount owing unstated. · page: 5 · as of: 2022-10-27 · debtor: Prosysco Ltd. · creditor: Her Majesty in right of Ontario represented by the Minister of Finance · currency: CAD · security: PPSA registration - Inventory, Equipment, Accounts, Other, Motor Vehicle
- secured creditorsnote: Aggregated equipment/vehicle finance registrants per PPSA search (file currency date March 28, 2023): De Lage Landen Financial Services Canada Inc., Ford Credit Canada Company, Toyota Credit Canada Inc., The Bank of Nova Scotia, Honda Canada Finance Inc., Vault Credit Corporation, BMW Canada Inc., Meridian Onecap Credit Corp., CWB National Leasing Inc., Bercon Rentals Inc., and ATCO Structures & Logistics Ltd. Registrations not yet investigated by Proposal Trustee; individual balances unstated. · page: 5 · debtor: Prosysco Ltd. · creditor: PPSA equipment financiers (PMSI class) · currency: CAD · security: Serialized equipment/motor vehicle PMSI registrations
- secured creditorsnote: Deemed trust class; stated as 'approximately $1.63 million' unpaid source deductions. CRA notified of NOI proceedings and had not yet contacted Proposal Trustee as of report date. · page: 6 · amount: 1630000 · debtor: Prosysco Ltd. · creditor: Canada Revenue Agency · currency: CAD · security: Deemed trust for unremitted source deductions
- secured creditorsnote: Registration not yet investigated by Proposal Trustee as of date of First Report; amount owing unstated. · page: 6 · as of: 2018-09-19 · debtor: 1110615 Ontario Ltd. · creditor: Echelon Insurance · currency: CAD · security: PPSA registration - Other
- unsecured creditorsnote: Claim not yet estimated at time of First Report; contingent on lease disclaimer by management. · page: 6 · basis: Anticipated unsecured claim under section 65.2(4) of the BIA arising from disclaimer of commercial head office leases · debtor: Prosysco Ltd. · creditor: Landlord (commercial head office leases, to be disclaimed) · currency: CAD
- unsecured creditorsnote: Document names no individual arm's-length unsecured creditors; figure is approximate as stated ('approximately $1.8 million'). · page: 6 · as of: NOI filing date · basis: Listed by Prosysco in its NOI as arm's length unsecured claims · amount: 1800000 · debtor: Prosysco Ltd. · creditor: Unsecured creditors (aggregate as reported) · currency: CAD
- unsecured creditorsnote: Related party claims (shareholders/insiders); Prosysco updating accounting records, final amount owing to non-arm's length creditors not yet known. · page: 7 · as of: NOI filing date · basis: Listed by Prosysco as an estimate of amounts owing to shareholders and other non-arm's length unsecured creditors · amount: 2500000 · debtor: Prosysco Ltd. · creditor: Unsecured creditors (aggregate as reported) - non-arm's length · currency: CAD
- unsecured creditorsnote: Intercompany claim; related party (111Co. is majority shareholder of Prosysco). · page: 7 · as of: NOI filing date · basis: The only unsecured creditor listed on 111Co.'s NOI · amount: 128000 · debtor: 1110615 Ontario Ltd. · creditor: Prosysco Ltd. · currency: CAD