British Columbia · Proposal
Proposal Trustee's Fifth Report dated October 1, 2026
Court officer report · 1 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 filing12 verified
- secured creditorsnote: $100,000 is the charge ceiling, not an outstanding balance. Court-ordered priority charge for professional fees; no balance stated. · page: 3 · debtor: Artic Machinery Ltd. · creditor: Beneficiaries of the Administration Charge (Proposal Trustee, its counsel, Company counsel) · currency: CAD · security: Administration Charge on the Property, maximum $100,000, ranks in priority to all Encumbrances
- unsecured creditorsnote: Disputed. XCMG asserts secured and unsecured claims supported by documentary evidence; the Company denies owing anything and is itself suing XCMG (XCMG Claim, damages particularized in Schedule A of the Proposal totalling roughly $50.6M; Mareva injunction up to ~$32.5M). Amount of XCMG claims not stated in these pages. XCMG's security treatment is contested. · page: 5 · basis: Proofs of claim delivered April 29, 2026; disallowed for voting purposes by the Proposal Trustee under s. 108(1) BIA · debtor: Artic Machinery Ltd. · creditor: XCMG Defendants (XCMG Canada Ltd., XCMG America Financial LLC, XCMG North America Corporation, Xuzhou Construction Machinery Group Imp. & Exp. Co., Ltd.) · currency: CAD
- unsecured creditorsnote: Voting claims, not an adjudicated total of unsecured debt; the XCMG proofs of claim were disallowed for voting purposes (XCMG Ruling, under appeal). The dissenting claim of $163,355.23 is additional to the amount in favour. Great West Truck Lease & Rentals Ltd. proof of claim was admitted for voting. · page: 5 · as of: 2026-04-30 · basis: Claims of voting creditors at the April 30, 2026 Meeting: 13 in favour with claims totalling $26,568,159.05; one against ($163,355.23) · amount: 26568159.05 · debtor: Artic Machinery Ltd. · creditor: Voting Creditors (Affected Creditors) who voted to approve the Proposal · currency: CAD
- secured creditorsnote: Lease obligations; no balance stated. Company's estimated book value of the Marjak Trucks is approximately $516,000 (not a debt balance). Marjak has complained of late lease payments. · page: 11 · debtor: Artic Machinery Ltd. · creditor: Marjak Leasing (Watkin Motors Limited dba Marjak Leasing) · currency: CAD · security: Lessor of trucks under the Marjak Leases (10 Marjak Trucks leased, purchased at lease end, or to be purchased Oct 1, 2026)
- secured creditorsnote: Post-filing debtor-in-possession style financing. Amount is the Intercompany Advances made since the Filing Date, per the report date of Oct 1, 2026 (Sanction Order Application context). Related-party lenders (a director/principal and an affiliate). The $1,810,000 figure is the authorized maximum, not the balance advanced. Seventh Cash Flow Forecast projects a further ~$327,500 of additional financing required. · page: 17 · as of: 2026-10-01 · amount: 1536249 · debtor: Artic Machinery Ltd. · creditor: Intercompany Lenders (Seaton Forest Products Ltd. (SFP), Ryan Martin, John Ross McMaster) — Intercompany Charge · currency: CAD · security: Intercompany Charge on the Property, increased by orders to a maximum of $400,000, then $825,000, $1,285,000 and $1,810,000; ranks behind the Administration Charge and all Encumbrances
- unsecured creditorsnote: Approximate ('approximately $3.41 million'). Priority/deemed-trust class; to be paid in full within 6 months of the Approval Order from asset purchase agreement proceeds. Asset Purchase Agreement to SFP payments to the Crown total approximately $3.4 million. Not a conventional unsecured claim. · page: 17 · basis: Crown Claims reported in the Proposal Report as approximately $3.41 million · amount: 3410000 · debtor: Artic Machinery Ltd. · creditor: Crown (CRA / provincial) — Crown Claims (deemed trust class) · currency: CAD
- unsecured creditorsnote: Obligation for Litigation Costs (XCMG Claim) was assumed by affiliates with MCK's consent; no longer a Company obligation. Estimated total Litigation Costs approximately $1.94 million over several years (estimate only). · page: 17 · as of: 2026-10-01 · basis: Approximately $158,000 owed to MCK on account of Litigation Costs as of the report date, advised by the Company · amount: 158000 · debtor: Citra Logistics Ltd., Wild Timber Industries Ltd., Artic Rents Ltd., Seaton Forest Products Ltd. (assumed obligation; originally Artic Machinery Ltd.) · creditor: Medical-style professional fees: McEwan Cooper Kirkpatrick LLP (Company counsel) — Litigation Costs owed · currency: CAD
- unsecured creditorsnote: Characterization by XCMG counsel, not the Trustee. No amounts stated. Great West's proof of claim was admitted for voting at the Meeting. · page: 147 · basis: Described in XCMG Canada's letter of April 29, 2026 as creditors with significant contingent claims (guarantee-based) · debtor: Artic Machinery Ltd. · creditor: Essex Lease Financial Corporation; Great West Truck Lease & Rentals Ltd. · currency: CAD
- secured creditorsnote: Approximate figure ('approximately $5.2 million') taken from the Proposal Trustee's Report on the Proposal as quoted in XCMG Canada's letter of April 29, 2026 (counsel's characterization, not a stated total in this report). Secured creditor payments are forecast at $28,715 per month. Includes disputed XCMG Defendants' security interests (XCMG disputes treatment); the Company denies the XCMG Defendants are owed anything. · page: 148 · amount: 5200000 · debtor: Artic Machinery Ltd. · creditor: Secured creditors / PPR registrants (collective) · currency: CAD · security: PPR registrations over collateral the Company considers it still holds
- operational summaryThe company is in NOI/proposal proceedings, funded by intercompany advances, and is pursuing the XCMG Claim while a sanction application for its amended proposal (sale of hard assets to SFP to pay Crown claims) is pending and opposed by XCMG. The trustee reports no material adverse cash flow variances beyond the MAC Report and says the company continues to meet post-filing obligations in the ordinary course.
- report date1 October 2026
- report noFifth Report