Ontario · Proposal
Report to creditors of the Proposal Trustee dated May 20, 2022 - final
Court officer report · 20 May 2022
What we verified from this filing15 verified
- appointeeKSV Restructuring Inc.
- appointee roleproposal trustee
- commencement date28 April 2022
- courtONTARIO SUPERIOR COURT OF JUSTICE IN BANKRUPTCY AND INSOLVENCY
- court file no33-2825753
- provinceONTARIO
- statutory basisBankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, as amended
- financial positionnote: Long-term debt ($55,895,000) and convertible debenture ($8,776,000) represent advances from Sponsors, both directly and through Subsidiaries; accounts payable and other long-term liabilities include accrued interest of approximately $9.8 million; shareholders' deficiency of $(60,184,000) reconciles totals; figures in ($000s) · page: 8 · as at: 2021-09-30 · basis: unaudited consolidated balance sheet prepared by Company's representatives · scope: consolidated (Clearford Water Systems Inc. and Subsidiaries) · currency: CAD · total assets: 19857000 · total liabilities: 80041000
- secured creditorsnote: Sponsor and related party; balance approximate as of Filing Date; also holds Subordinate Holder interest of $5,349,728 in CVN Schedule A · page: 8 · as of: Filing Date (April 28, 2022) · amount: 5350000 · debtor: Clearford Water Systems Inc. · creditor: Sustainable Water Projects Inc. (SWP) · currency: CAD · security: General security agreement dated May 19, 2016; comprised of (i) $3.25M principal loan agreement dated Nov 19, 2014 (originally advanced by Canadian Water Projects Inc., assigned to SWP Sept 30, 2016), and (ii) US$1.47M principal loan agreement dated May 19, 2016
- secured creditorsnote: Sponsor and related party; balance approximate as of Filing Date; Priority Holder in CVN with claim of $7,442,276.00 (66.81%) per Schedule A · page: 9 · as of: Filing Date (April 28, 2022) · amount: 7400000 · debtor: Clearford Water Systems Inc. · creditor: Morebath Limited · currency: CAD · security: Convertible debentures and share pledges: (i) $500,000 dated Nov 5, 2018 (pledging 100% shares of Clearford Water Utility (Fetherston) Inc.); (ii) $1.65M dated May 15, 2018 (pledging 100% shares of 486606 Ontario Inc.); (iii) $3.5M dated Aug 5, 2015 (pledging 90.7% shares of UV Pure Technologies Inc.)
- secured creditorsnote: Sponsor and related party; balance approximate as of Filing Date; Priority Holder in CVN with claim of $3,697,268.00 (33.19%) per Schedule A · page: 9 · as of: Filing Date (April 28, 2022) · amount: 3700000 · debtor: Clearford Water Systems Inc. · creditor: Lexus Continental Ltd. · currency: CAD · security: Convertible debenture and share pledge in principal amount of $2.975 million dated November 1, 2017, pledging 100% shares of Koester Canada Inc. (prior name of Clearford Koester Canada Inc.)
- unsecured creditorsnote: Unsecured loan owed to a party related to SWP (related party); CVN Schedule A shows exact claim of $4,476,457.00; SW Everett Loan defined as principal amount USD$3,350,000 per definitions · page: 9 · basis: Company's creditor listing (Appendix G) as reported · amount: 4477000 · debtor: Clearford Water Systems Inc. · creditor: SW Everett Inc. (SWE) · currency: CAD
- unsecured creditorsnote: Represents net balances owed to three Subsidiaries; related party intercompany claims; component breakdown given, not itemized further per-entity balance verified elsewhere (CVN Schedule A shows Clearford Koester $16,400,317, Clearford Water Utility (Ontario) $1,011,797, Clearford Finance $7,828,026) · page: 9 · basis: Company's creditor listing (Appendix G) as reported · amount: 25240000 · debtor: Clearford Water Systems Inc. · creditor: Intercompany Claims (Clearford Koester Canada Inc. $16.4M, Clearford Finance Corporation $7.8M, Clearford Water Utility (Ontario) Inc. $1.0M) · currency: CAD
- unsecured creditorsnote: Primarily vendor claims and amounts due to professional advisors; document names no individual creditors in this summary table; described elsewhere as 'estimated by the Company to hold Affected Claims of approximately $296,000' · page: 9 · basis: Company's creditor listing (Appendix G) as reported · amount: 296000 · debtor: Clearford Water Systems Inc. · creditor: Trade and other creditors (aggregate as reported) · currency: CAD
- secured creditorsnote: Amount not stated; named as example holder of valid registered security interest, treated as Unaffected Claim under the Proposal · page: 11 · debtor: Clearford Water Systems Inc. · creditor: Enterprise Fleet Management Canada, Inc. · currency: CAD · security: Registered security interest over the Property; referenced as example of Non-Sponsor Secured Claims