Ontario · Receivership (court-appointed)
First Report of the Receiver dated May 29, 2023.pdf
Court officer report · 29 May 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 filing14 verified
- unsecured creditorsnote: Receiver has received no documentation and cannot comment. Counsel's email refers separately to unspecified outstanding COVID relief loans not due until end of 2023; particulars requested by the Receiver but not provided (may overlap with the CEBA/Ontario items above; Receiver understands they are separate from CEBA). · page: 4 · basis: Stated in the Debtors' Motion; said to be in good standing · amount: 50000 · debtor: Eabametoong Agricultural Co-Operative · creditor: Province of Ontario · currency: CAD
- secured creditorsnote: Lease buyout amount of $15,250 at May 31, 2023 per Sprucewood email (as reported by Eabametoong; Receiver has no other information and cannot comment). Registration made after RBC's PPSA registration against Eabametoong. Counsel's email states the lease is not yet due and Mr. Casey expects it to be paid and discharged before the motion date. · page: 5 · as of: 2023-05-31 · amount: 15250 · debtor: Eabametoong Agricultural Co-Operative · creditor: Sprucewood Leasing Limited · currency: CAD · security: PPSA registration (Oct 7, 2020) covering consumer goods and motor vehicle: 2020 RAM 1500 Big Horn leased by Eabametoong; registration amount shown $40,532
- secured creditorsnote: Receiver's understanding of Eabametoong RBC Debt: $116,926.90 plus professional fees; the Debtors' Motion states $116,899.69 (difference $27.22 is one day's interest). The $116,899.69 figure was computed by Debtors' counsel from an April 13, 2023 RBC email figure of $115,620.35 plus $27.22 per diem, without a current payout statement (a guess per counsel's email). Earlier demand-letter figure: $210,212.89 principal and interest as of Nov 21, 2022 (exclusive of fees/interest). Eabametoong has advised it has obtained financing ($170,000 Eabametoong Loan from Mr. Casey) to repay RBC in full; not yet paid at report date. Receiver has not independently verified. · page: 5 · as of: 2023-05-30 · amount: 116926.9 · debtor: Eabametoong Agricultural Co-Operative · creditor: Royal Bank of Canada · currency: CAD · security: General security agreement dated September 11, 2020 (PPSA registered April 16, 2020; all-property GSA covering inventory, equipment, accounts, other, motor vehicle); Lerners security opinion confirms valid and perfected security interest in all assets and undertaking of Eabametoong, subject to customary assumptions and qualifications
- unsecured creditorsnote: Receiver has received no documentation and cannot comment on amount or status. Classification as unsecured is not stated in the document; no security registration found. · page: 5 · basis: Stated in the Debtors' Motion; reported loan said to be in good standing · amount: 136708 · debtor: Eabametoong Agricultural Co-Operative · creditor: Federal Development Corporation · currency: CAD
- unsecured creditorsnote: Receiver has received no documentation and cannot comment. Government COVID relief loan (not an RBC credit facility under the GSA as far as stated). · page: 5 · basis: Stated in the Debtors' Motion; CEBA loan administered by RBC, said to be in good standing · amount: 60000 · debtor: Eabametoong Agricultural Co-Operative · creditor: RBC – Canada Emergency Business Account (CEBA) loan · currency: CAD
- unsecured creditorsnote: Receiver has not seen returns filed and cannot comment on accuracy. CRA advised the Receiver it plans trust examinations of each Debtor, which will clarify outstanding priority payables; CRA amounts for Neskantaga and Webequie not stated. Proposed to be paid from the Eabametoong Loan. · page: 5 · as of: 2023-05-24 · basis: Statement of Account printed from CRA website provided in Debtors' Motion; deemed trust class (source deductions), priority ahead of RBC · amount: 15278.98 · debtor: Eabametoong Agricultural Co-Operative · creditor: Canada Revenue Agency (source deduction arrears) · currency: CAD
- financial positionnote: Receiver has had no access to records since May 11, 2023 stay and could not independently verify information; no financial position figures stated. · page: 6 · basis: No balance sheet stated. Receiver relied on unaudited information and discussions with management; Mr. Casey advised the Debtors never conducted significant business activities, that proper books and records were not maintained, and that the Debtors had no assets other than a vehicle leased by Eabametoong. · scope: Neskantaga, Eabametoong and Webequie (Debtors under the Receivership Order) · currency: CAD
- secured creditorsnote: Principal and interest exclusive of legal fees, disbursements and accruing interest, per Sept 29, 2022 demand letter; registered charge principal $3,000,000 is a registration amount, not a balance. Bricktown Forbearance Agreement Oct 25, 2022 expired Jan 23, 2023 without repayment. Bricktown matter adjourned to May 11, 2023 to allow refinancing; RBC not presently claiming against guarantors but reserves rights. · page: 36 · as of: 2022-09-28 · amount: 2929015.54 · debtor: Bricktown Co-Operative Development Corporation (with Bricktown Guarantors jointly and severally) · creditor: Royal Bank of Canada · currency: CAD · security: General security agreement dated July 27, 2018 (PPSA registered) and $3,000,000.00 charge/mortgage on 5929 Concession Road 5, Township of Clearview, Ontario (sole charge on title as at March 9, 2023); guarantee and postponement of claim by four related entities in principal amount of $3,000,000.00
- secured creditorsnote: Principal and interest, exclusive of legal fees, disbursements and accruing interest, per November 23, 2022 demand letter. RBC is the only PPSA registrant against Neskantaga. Forbearance expired; RBC described as primary secured creditor. · page: 37 · as of: 2022-11-21 · amount: 307063.3 · debtor: Neskantaga Agricultural Co-Operative · creditor: Royal Bank of Canada · currency: CAD · security: General security agreement dated September 11, 2020 (PPSA registered)
- secured creditorsnote: Principal and interest, exclusive of legal fees, disbursements and accruing interest, per November 23, 2022 demand letter. RBC is the only PPSA registrant against Webequie. · page: 37 · as of: 2022-11-21 · amount: 271715.2 · debtor: Webequie Agricultural Co-Operative · creditor: Royal Bank of Canada · currency: CAD · security: General security agreement dated September 11, 2020 (PPSA registered)
- operational summaryThe Receiver's activities have been stayed since May 11, 2023 and it has had no access to the Debtors' business, operations or financial records since that time; Eabametoong is arranging refinancing to repay RBC and CRA and seeking the Receiver's discharge.
- professional feesnote: Additional legal fees of $2,621.60 incurred by Lerners (Receiver's counsel) for period to and including May 11, 2023, inclusive of disbursements and HST; also estimated Fee Accrual of $10,000 (Receiver) and $7,500 (Lerners) plus disbursements and HST to conclusion of receivership · party: Receiver (Grant Thornton Limited) · amount: 8087.18 · period: to and including May 25, 2023 · currency: CAD
- report date29 May 2023
- report noFirst Report