Alberta · Proposal
First Report of the Proposal Trustee (October 29, 2024)
Court officer report · 29 October 2024
A plain-language read of this filing opens with a subscription.
What we verified from this filing8 verified
- secured creditorsnote: Principal lender; obligations jointly and severally guaranteed by subsidiaries SPOBOC, SPOSOC, SPOC and 102 Ltd. (Full Liability Guarantees dated Dec 14, 2022); security opinion confirmed by Proposal Trustee's counsel (Lawson Lundell) as legal, valid and enforceable; approximate figure stated in prose. · page: 8 · as of: 2024-10-09 · amount: 500000 · debtor: Switch Power Corp. · creditor: Canadian Western Bank · currency: CAD · security: General Security Agreement dated December 14, 2022
- secured creditorsnote: Related party - Cardon owns 32% of Company's fully diluted shares; security explicitly postponed and subordinate to CWB's security (including CWB GSA); no balance amount disclosed. · page: 9 · debtor: Switch Power Corp. · creditor: Cardon Group Inc. · currency: CAD · security: Loan per Letter of Offer signed April 17, 2020 (amended Feb 1, 2023; new Letter of Offer Jan 8, 2024, amended May 13, 2024); security subordinated to CWB per Postponement and Subordination Agreement
- secured creditorsnote: Aggregate principal and interest figure; security interests are subordinate to all 'Senior Indebtedness' (defined to include indebtedness to Cardon and its affiliates and to financing institutions providing financing to the Company, e.g., CWB). · page: 10 · as of: 2024-06-30 · amount: 6170000 · debtor: Switch Power Corp. · creditor: Debenture holders (convertible debentures) · currency: CAD · security: Security interest in all present and after-acquired real and personal property, granted pursuant to Second Amended and Restated Inter-Creditor Agreement among debenture holders
- secured creditorsnote: Demand for payment in full issued December 5, 2023; Notice of Disposition of Collateral issued October 16, 2024 pursuant to s.62 of Alberta PPSA, proposing to retain pledged securities in satisfaction of debt; Company's guarantee recourse limited to pledged securities; no stated dollar amount. · page: 12 · debtor: SPOBOC and SPOSOC (subsidiaries); Switch Power Corp. as limited recourse guarantor · creditor: RE Royalties Ltd. · currency: CAD · security: Securities Pledge Agreements dated August 30, 2021 (SPOBOC) and August 30, 2022 (SPOSOC); Limited Recourse Guarantees from Company dated same dates
- process resultsndas: 7 · note: seven prospective purchasers signed CAs and received data room access; Sitka was the only party that finalized an offer · as of: 2024-10-29
- purchaserSitka Power Services Inc.
- sale advisorFort Capital Partners Alberta; Selkirk Advisory Group
- sale outcometext: The Company believes that this offer is the best possible offer under the circumstances and is likely to achieve the greatest recovery for its creditors. · scope: whole_business · status: pending_approval