Quebec · NOI
Preliminary Administration Report of the Trustee for How Fashions International Inc. and 9896481 Canada Inc
Court officer report · 8 December 2020
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What we verified from this filing9 verified
- closing confirmedscope: the intellectual property and other intangible assets related to the Ronny Kobo brand and other associated brands · outcome: completed · effective: 2020-11-10 · purchaser: Captive Brands Corporation · date basis: stated · approval order date: 2020-10-29
- financial positionnote: Document states only a deficit figure, not separate total assets/liabilities; claims totalling approximately $11.5 million per Statement of Affairs. · as at: 2020-11-24 · basis: Statement of Affairs prepared by the Trustee in compliance with the provisions of the Bankruptcy and Insolvency Act · scope: entity - the bankrupt estates of How Fashions International Inc. and 9896481 Canada Inc. · currency: CAD
- operational summaryThe Companies ceased operations in September 2020 after severe COVID-19 impacts and financial distress; following a sale of IP assets to Captive Brands Corporation, the Trustee is now liquidating remaining Canadian inventory, collecting receivables, and monitoring liquidation of US inventory, with no distribution expected for unsecured creditors.
- process resultsbids: 8 · lois: 2 · note: eight parties indicated interest; two companies submitted letters of intent
- purchaserCaptive Brands Corporation
- recovery outcomeentries: basis: estimated · quote: As the amount of the secured claim of HSBC, the first ranking secured creditor, totaled approximately $6 million, the secured lender is expected to suffer a significant shortfall and accordingly there will be no net proceeds of realization available to fund a dividend to the unsecured creditors. · pct of: unstated · outcome: shortfall · class key: secured · stated by: trustee · class label: HSBC, the first ranking secured creditor · claims amount: 6000000 · creditor name: HSBC Bank Canada · interim final: unstated · claims qualifier: estimated; basis: estimated · quote: The Trustee does not expect that there will be an amount available for distribution to the unsecured creditors from the realization of the Companies' assets, whether located in Canada or the USA. · pct of: unstated · outcome: nil · class key: unsecured · stated by: trustee · class label: unsecured creditors · claims amount: 2500000 · interim final: unstated · claims qualifier: estimated · stated on: 2020-12-08 · table missing:
- report date8 December 2020
- report noPreliminary Administration Report of the Trustee
- sale outcometext: sale of the intellectual property and other intangible assets related to the Ronny Kobo brand and other associated brands closed · scope: parcel · status: closed