Ontario · Receivership (court-appointed)
Application Record dated
Application / notice of application · 9 May 2024
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 · 1 withheld
- proceeding typereceivership_court
- statutory basiss. 101 of the Courts of Justice Act, R.S.O. 1990, c.C-43 and s. 243 (1) of the Bankruptcy and Insolvency Act, R.S.C. 1985, c.B-3, ss. 67(1)(a) and (e) of the Personal Property Security Act, R.S.O. 1990, c. P.10 and Rules 3 and 14.05(2), (3) (g) and (h) of the Rules of Civil Procedure
- commencement date6 May 2024
- courtSUPERIOR COURT OF JUSTICE COMMERCIAL LIST
- secured creditorsnote: Amount is a stated floor ('owed in excess of $20,000,000' by its borrower True North); indebtedness of True North is guaranteed by the Debtor (1000088317 Ontario Inc.); BMO obtained ex parte interim receivership order April 12, 2024 appointing BDO Canada Limited as interim receiver over True North, the Debtor and North Shore; BMO has since brought bankruptcy order applications against True North and North Shore returnable May 6, 2024 · page: 13 · as of: BMO's interim receivership application (April 2024) · amount: 20000000 · debtor: True North Freight Solutions Inc. · creditor: Bank of Montreal (BMO) · currency: CAD · security: Second-ranking charge on the Real Property in principal amount of $17,800,000.00 (subordinate to BDC's Mortgage); first-ranking security on personal property of True North Freight Solutions Inc. and North Shore Logistics Inc. (Debtor holds subordinate second-ranking interest); second-ranking (subordinate) interest in Debtor's personal property behind BDC; PPSA registration dated Feb 13, 2023; priorities set by Priority Agreement dated Feb 23, 2023 among BDC, BMO, Debtor, True North and North Shore
- unsecured creditorsnote: Deemed trust class / tax assessment · page: 13 · as of: 2024-03-12 · basis: Affidavit filed in support of BMO's interim receivership application identified failure to pay corporate income taxes assessed · amount: 1763883 · debtor: True North Freight Solutions Inc. (also identified as affecting the Debtor and North Shore Logistics Inc. - allocation unclear) · creditor: Canada Revenue Agency (CRA) - corporate income tax assessment · currency: CAD
- unsecured creditorsnote: Stated as a floor: 'arrears in respect of these policies in excess of $1,500,000'; related insurer (Armour Insurance Brokers Ltd.) registered a caution on title to the Real Property on March 25, 2024 · page: 13 · as of: BMO's IR application affidavit · basis: Affidavit filed in support of BMO's interim receivership application identified failure to maintain required insurance coverage · amount: 1500000 · debtor: True North Freight Solutions Inc. (also identified as affecting the Debtor and North Shore Logistics Inc. - allocation among the three entities unclear) · creditor: Insurance arrears (Armour Insurance Brokers Ltd. and/or other insurer) · currency: CAD
- unsecured creditorsnote: Preferred claim (unpaid wages, ranks ahead of ordinary unsecured under BIA); stated only as a range of 'between $600,000 and $1,000,000', not summed · page: 13 · as of: BMO's IR application affidavit · basis: Affidavit filed in support of BMO's interim receivership application identified payroll arrears owing to truck drivers · debtor: True North Freight Solutions Inc. (also identified as affecting the Debtor and North Shore Logistics Inc. - allocation unclear) · creditor: Truck drivers (payroll arrears) · currency: CAD
- unsecured creditorsnote: Deemed trust class claim (CRA); figure stated as approximate ('approximately $1,900,000'); HST returns not filed since December 2023 · page: 13 · as of: period of April 2022 to November 2023 · basis: Affidavit filed in support of BMO's interim receivership application identified HST remittance arrears · amount: 1900000 · debtor: True North Freight Solutions Inc. (also identified as affecting the Debtor and North Shore Logistics Inc. - allocation unclear) · creditor: Canada Revenue Agency (CRA) - HST remittance arrears · currency: CAD
- unsecured creditorsnote: Deemed trust class claim (CRA) · page: 13 · basis: Affidavit filed in support of BMO's interim receivership application identified source deduction remittance arrears · amount: 800000 · debtor: True North Freight Solutions Inc. (also identified as affecting the Debtor and North Shore Logistics Inc. - allocation unclear) · creditor: Canada Revenue Agency (CRA) - source deduction remittances · currency: CAD
- secured creditorsnote: Same $17,765,351.69 figure also stated 'as of May 1, 2024' (para (c)); amount stated 'exclusive of further accrued interest, fees, disbursements, costs and HST'; prose approximation elsewhere as 'in excess of $17,765,000'; Loan facility (original advance) was $18,000,000.00 per Dec 21, 2021 letter of offer; Loan was two months in arrears totaling $209,360.30 as of demand; personal guarantees exist from Directors (individuals) - names in note only per guarantee dated Jan 25, 2022 · page: 14 · as of: 2024-05-02 · amount: 17765351.69 · debtor: 1000088317 Ontario Inc. · creditor: Business Development Bank of Canada (BDC) · currency: CAD · security: First-ranking Mortgage registered Jan 26, 2022 in principal amount of $18,000,000.00 against the Real Property (11553 Tenth Line, Halton Hills, ON); assignment of rents registered Jan 26, 2022; General Security Agreement (GSA) granting first-ranking security interest over Debtor's personal property, perfected under PPSA Jan 24, 2022; corporate guarantees of True North Freight Solutions Inc. and North Shore Logistics Inc. (each supported by their own GSAs); guarantee of the Directors (Harvinder Randhawa and Manpreet Bal) for 50% of Loan balance; per Priority Agreement dated Feb 23, 2023 with BMO, BDC holds first-ranking security on Debtor's real and personal property (BMO subordinate), and second-ranking/subordinate interest in True North's and North Shore's assets (BMO first-ranking there)
- unsecured creditorsnote: Deemed trust class claim (CRA); document notes it is 'not unreasonable to expect that this amount has not been paid and may have increased in the interim' · page: 15 · as of: Debtor's 2023 year-end financials · basis: Debtor's 2023 year-end financials confirmed HST owing · amount: 124858 · debtor: 1000088317 Ontario Inc. · creditor: Canada Revenue Agency (CRA) - HST · currency: CAD
1 extracted value is withheld: either a trap-shaped field where models produce confident wrong numbers, or an identity value whose quotation could not be found in the document. Withheld values are shown to no one.