Ontario · CCAA
Responding Application Record of the Responding Secured Creditor
Application / notice of application · 13 May 2026
Also filed as: Responding Application Record of the Responding Secured Creditor
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 filing4 verified
- secured creditorsnote: Personal guarantee from Frederick J. Paatz (sole shareholder/sole director of EBF) dated June 10, 2021 - related party guarantor. Facility was increased to $4,250,000 on September 11, 2024, then EBF repaid $1,250,000 on June 13, 2025 reducing outstanding to $3,000,000 (2025 Extension). Accrued and unpaid interest at contractual default rate of 18% per annum, calculated to May 9, 2026, totals approximately $281,095.89 (Exhibit V), plus enforcement costs and legal fees, in addition to the $3,000,000 principal. EBF has not disputed the principal sum. · page: 14 · as of: currently owing (affidavit sworn May 6, 2026) · amount: 3000000 · debtor: The EBF Group Ltd. · creditor: 1968328 Ontario Inc. ("196") · currency: CAD · security: General Security Agreement dated June 10, 2021 granting a continuing security interest in all present and after-acquired personal property, undertaking and assets; PPSA financing statement (Registration No. 20210608 1654 1590 4278) perfected June 8, 2021; second-ranking on EBF's general assets, behind Vyner
- secured creditorsnote: Approx. $5.8 million per MNP Lender Presentation dated April 21, 2026 (approximation, not an exact balance). $99,999.00 paid to Vyner on January 22, 2026 per EBF General Journal. · page: 15 · debtor: The EBF Group Ltd. · creditor: Brian Vyner / Vyner Group · currency: CAD · security: First-ranking secured creditor on EBF's general assets (general security, priority confirmed by affiant); facility limit increased from $5.25 million to $5.75 million (facility limit, not a stated balance) per Vyner Fourth Amended and Restated Loan Agreement dated December 6, 2024, to which 196 consented while remaining second-ranking
- secured creditorsnote: Approx. $13 million aggregate per MNP Lender Presentation dated April 21, 2026 (approximation, not a stated balance). Hageman asserts, via counsel's April 29, 2026 letter, that it is 'the largest and first-ranking secured lender' - this priority position is expressly disputed by 196, which contends Hageman's aggregate claimed Summit priority exceeds the $750,000 consented to and disputes the validity of the Sept 25, 2025 Trust Agreement and the JNR participation arrangement as improperly altering creditor priority without notice/consent. EBF and Hageman share the same registered business address (4145 North Service Road, Burlington). $100,000.00 paid to Hageman on January 19, 2026 on the disputed JNR participation arrangement, recorded in EBF's General Journal as 'Repayment FHHL' against account '2534 - FHHL - JNR'. · page: 24 · debtor: The EBF Group Ltd. · creditor: Fred Hageman's Holdings Ltd. ("Hageman"/"FHHL") · currency: CAD · security: General Security Agreement dated September 27, 2024 (FHHL Security) over all EBF collateral, ranking behind the HarCap/196 Security; $750,000 Loan with priority on the first $750,000 of Summit Purchased Accounts consented to by 196 (Summit Inter-Creditor Agreement dated December 6, 2024); additional disputed Senior Tranche of $1,500,000 (recited as reduced to approx. $1,250,000 per a February 13, 2026 email) over Summit Purchased Accounts asserted under the September 25, 2025 Trust Agreement; Project X Senior Tranche increased from $2,000,000 (July 29, 2024 agreement) to $4,000,000 (Amended and Restated Loan & Security Trust and Participation Agreement dated September 3, 2024)
- secured creditorsnote: Related party: Frederick J. Paatz is EBF's sole shareholder, sole director and personal guarantor. Loan Agreement s.6.3 contemplates a future Priorities Agreement between 196 and The Paatz 2016 Trust conditioned on arm's-length refinancing or pari passu ranking with 196's security. · page: 47 · debtor: The EBF Group Ltd. · creditor: The Paatz 2016 Trust · currency: CAD · security: Liens and security interests securing The Paatz 2016 Trust, carved out as a permitted lien under the 196 Loan Agreement (s.5.1(c)(iii)); no amount or registration details stated