Ontario · Receivership (court-appointed)
Application Record dated February 10, 2022
Application / notice of application · 10 February 2022
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 filing17 verified
- applicantHORIZON RE LIMITED
- courtSUPERIOR COURT OF JUSTICE (COMMERCIAL LIST)
- court file noCV-22-00676492-00CL
- statutory basisSECTION 243(1) OF THE BANKRUPTCY AND INSOLVENCY ACT, R.S.C. 1985, C. B-3, AS AMENDED AND SECTION 101 OF THE COURTS OF JUSTICE ACT, R.S.O. 1990, C. C.43
- appointeeA. Farber & Partners Inc.
- appointee roleProposed Receiver
- commencement date7 February 2022
- secured creditorsnote: Indebtedness owing to Applicant per Demand Letter as at January 4, 2022 totaled $3,000,000 (Series 1) plus applicable interest, fees, expenses; and $500,000 (Series 2-1) plus applicable interest, fees, expenses. Remaining Holders' indebtedness as at January 4, 2022 totaled $3,295,000 plus interest, fees, expenses. Q3 Financials aggregate figure of $12,463,446 (inclusive of interest) covers both Applicant and Remaining Holders combined. Dispute exists as to whether $1,000,000 of Series 2-1 Debentures were redeemed. · page: 15 · as of: Q3 Financials (nine months ended August 31, 2021) · amount: 12463446 · debtor: Net Zero Renewable Energy Inc. (formerly EnerDynamic Hybrid Technologies Corp.) · creditor: Computershare Trust Company of Canada (Indenture Trustee, on behalf of Series 1 and Series 2-1 Debenture holders, including Horizon RE Limited and Remaining Holders) · currency: CAD · security: Security interest under Article 5 of the Indenture over all present and after-acquired Property, registered under Ontario PPSA; Series 1 Debentures $3,000,000 principal (6.5%, matured March 4, 2018) and Series 2-1 Debentures principal (18%, matured July 3, 2017)
- secured creditorsnote: Subsequent in time to Trustee's registration; single serialized equipment financier, not aggregated PMSI class · page: 16 · as of: 2022-01-05 · debtor: Net Zero Renewable Energy Inc. · creditor: Kempenfelt, a Division of Bennington Financial Corp. · currency: CAD · security: PPSA registration re specific leased equipment: '2013 MULTICAM 7305-R-PF CNC MACHINE TOOL (80'X145") S/N 9750'
- secured creditorsnote: Amount not stated; blanket all-property registrant · page: 16 · as of: 2022-01-05 · debtor: Net Zero Renewable Energy Inc. · creditor: Her Majesty in Right of Ontario represented by the Minister of Finance · currency: CAD · security: Blanket PPSA registration, subsequent in time to Trustee's registration
- secured creditorsnote: Related party: secured loan advanced from a party related to director Bruce Bent; amounts due on demand · page: 16 · as of: nine months ended August 31, 2021 · amount: 172559 · debtor: Net Zero Renewable Energy Inc. · creditor: MSW Investments Limited · currency: CAD · security: Blanket PPSA registration (general security agreement), subsequent in time to Trustee's registration
- unsecured creditorspage: 17 · as of: nine months ended August 31, 2021 · basis: Q3 Financials as reported · amount: 247634 · debtor: Net Zero Renewable Energy Inc. · creditor: Lease liability (current portion) · currency: CAD
- unsecured creditorsnote: Document names no individual creditors · page: 17 · as of: nine months ended August 31, 2021 · basis: Q3 Financials (unaudited Condensed Consolidated Interim Financial Statements) as reported · amount: 7828820 · debtor: Net Zero Renewable Energy Inc. · creditor: Accounts payable and accrued liabilities (aggregate as reported) · currency: CAD
- financial positionnote: Total assets figure refers to current assets only ($3,015,065), per affidavit; total liabilities of $21,987,377 includes current and non-current liabilities, of which $12,463,446 relates to liabilities owing to the Applicant and Remaining Holders (secured debentures). Net loss for nine months ended August 31, 2021 was $5,593,656 with revenue of only $236,700 (forecast/period figures, not balance sheet). · page: 28 · as at: 2021-08-31 · basis: Q3 Financials (unaudited Condensed Consolidated Interim Financial Statements) · scope: consolidated - EnerDynamic Hybrid Technologies Corp. (now Net Zero Renewable Energy Inc.) and subsidiaries · currency: CAD · total assets: 3015065 · total liabilities: 21987377
- unsecured creditorsnote: Related party (director/CEO); non-interest bearing, due on demand · page: 74 · as of: nine months ended August 31, 2021 · basis: Q3 Financials related party disclosure as reported · amount: 200436 · debtor: Net Zero Renewable Energy Inc. · creditor: Due to director - John Gamble · currency: CAD
- unsecured creditorspage: 74 · as of: nine months ended August 31, 2021 · basis: Q3 Financials related party disclosure as reported · amount: 25000 · debtor: Net Zero Renewable Energy Inc. · creditor: Due to non-executive employee · currency: CAD
- unsecured creditorsnote: Interest-free and unsecured loan; repayable on or before December 31, 2022; up to $20,000 forgivable · page: 76 · as of: nine months ended August 31, 2021 · basis: Q3 Financials note 19 as reported · amount: 60000 · debtor: Net Zero Renewable Energy Inc. and subsidiary EBS (each) · creditor: Government of Canada (Canada Emergency Business Account) · currency: CAD