Ontario · CCAA
Application Record dated June 5, 2026 - Volume 1 of 2
Application / notice of application · 5 June 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 filing10 verified
- applicantPaystone Holdings Inc., Paystone Inc., Atom Growth Inc., and Atom Growth (USA), Inc.
- commencement date5 June 2026
- courtSUPERIOR COURT OF JUSTICE (COMMERCIAL LIST)
- statutory basisCompanies' Creditors Arrangement Act, R.S.C. 1985, c. C-36, as amended
- appointeeKSV Restructuring Inc.
- appointee roleProposed Monitor
- financial positionnote: Asset breakdown: Cash $764,000; Trade/other receivables $6,037,000; Prepaid expenses $788,000; Inventory $261,000; Contract Assets $7,990,000; Property and equipment $706,000; Intangibles $34,082,000 (total $50,628,000). Liability breakdown: Trade/AP/Accrued Liabilities $10,422,000; Deferred Revenues $232,000; Promissory Notes $4,349,000; Senior Credit Facilities $91,296,000; BDC Loan $11,638,000 (total $117,937,000). Affidavit notes net realizable value of assets is virtually certain to be less than book value in light of Pre-Filing Process bids received. · page: 58 · as at: 2026-04-30 · basis: consolidated unaudited balance sheet · scope: consolidated - Applicants (Paystone Holdings Inc., Paystone Inc., Atom Growth Inc., Atom Growth (USA), Inc.) · currency: CAD · total assets: 50628000 · total liabilities: 117937000
- secured creditorsnote: Senior secured creditor; acquired via Loan Purchase Agreement (closed May 12, 2026) from Syndicate (National Bank of Canada, Fédération des caisses Desjardins du Québec, Royal Bank of Canada), who took a discount of more than half the principal then owing. Principal stated as of Sandton Forbearance Agreement execution date. Purchased obligations comprised Revolving Facility outstanding $1,500,000 (limit $1,000,000), Term Facility outstanding $88,875,000 (limit $90,000,000), and Existing Hedge Early Termination Amount $1,700,000. Under a contemplated future New Credit Agreement (post-Sale Transaction), principal would be reduced to $60 million, but that is a forward-looking restructuring term, not the pre-filing balance. · page: 64 · as of: 2026-05-08 · amount: 92375000 · debtor: Paystone Inc. · creditor: Sandton Investments X (Luxembourg) S.à r.l. · currency: CAD · security: Unlimited guarantees from Paystone Holdings, Atom Growth Inc. and Atom Growth (USA), Inc.; general security and pledge agreements executed by Paystone, Atom Growth Canada and Atom Growth USA; securities pledge agreement and general security agreement by Paystone Holdings; deed of hypothec on moveable property granted by Paystone; IP security agreements and insurance assignments; personal guarantees from Principals capped at $500,000 (related party guarantors)
- secured creditorsnote: Subordinate secured creditor, indebtedness subordinated to Sandton Secured Indebtedness pursuant to Priority Agreement dated Feb 29, 2024. Applicants in default of interest payments; BDC delivered demand letter and BIA Notice of Intention to Enforce Security on Feb 19, 2026, but was prevented from enforcing by a standstill notice delivered by the Agent the following day; standstill period expires June 20, 2026. · page: 67 · as of: as of the date hereof (affidavit sworn June 5, 2026) · amount: 11800000 · debtor: Paystone Inc. · creditor: BDC Capital Inc. · currency: CAD · security: General security agreements executed by Paystone, Paystone Holdings and Atom Growth Canada; unlimited guarantees from Paystone Holdings and Atom Growth Canada; joint and several personal guarantees by Personal Guarantors capped at aggregate $1,000,000 (related party guarantors). Original BDC Loan principal advanced was $10,000,000 (Jan 29, 2024 letter of offer).
- secured creditorsnote: Company holds $250,000 of restricted cash with BNS used for Company's billings, pledged as cash collateral; this figure represents collateral pledged, not a stated outstanding secured debt balance. · page: 67 · debtor: Paystone Inc. · creditor: The Bank of Nova Scotia · currency: CAD · security: Pledge of cash collateral to secure any outstanding indebtedness owing to BNS in connection with banking services