Ontario · NOI
Report of Trustee on Amended Proposal – December 23 2025
Court officer report · 23 December 2025
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What we verified from this filing13 verified
- appointeeDodick Landau Inc.
- appointee roleProposal Trustee
- commencement date14 November 2025
- court file noBK-25-03298880-0031
- statutory basissection 50.4 of the Bankruptcy and Insolvency Act
- financial positionnote: Same source also reports total debt of approximately $3.6 million (FY2023) and $3.2 million (FY2024), and net losses of approximately $3,016,911 (FY2023), $245,517 (FY2024) and $3,016,278 (period ended Sept 30, 2025); total assets not stated. · page: 4 · as at: 2025-09-30 · basis: Internally prepared, unaudited financial statements of Morris provided by Elm; described by the Proposal Trustee as 'total debt' (not reviewed or verified per GAAS) · scope: Morris Marketing Group Inc. (single entity) · currency: CAD · total liabilities: 2800000
- unsecured creditorsnote: Related party (parent company) claim, net of the ~$2.9 million August 2025 Debt Repayment; not audited/verified by the Proposal Trustee. Classified as an Unaffected/Related Party Claim, excluded from voting and distributions under the Amended Proposal, but would share pro rata as an unsecured claim in a liquidation scenario. · page: 5 · basis: Elm advised the Proposal Trustee of a Related Party Claim for unpaid Management Fees under the Shared Services Agreement, calculated by Elm using a transfer pricing/revenue allocation methodology · amount: 5800000 · debtor: Morris Marketing Group Inc. · creditor: Elm Street Technology, LLC (Elm Claim) · currency: CAD
- unsecured creditorsnote: Included within, not additional to, the ~$1.0 million aggregate trade creditor figure above. · page: 5 · basis: Xerox Canada Ltd. advised the Proposal Trustee that its claim will amount to approximately $800,000 · amount: 800000 · debtor: Morris Marketing Group Inc. · creditor: Xerox Canada Ltd. · currency: CAD
- unsecured creditorsnote: Document names no individual creditors within the aggregate except Xerox Canada Ltd., whose claim (see separate entry) is included within this $1.0 million total. · page: 5 · basis: Reported by the Proposal Trustee as approximately 50 general unsecured unrelated creditors with claims totaling approximately $1.0 million · amount: 1000000 · debtor: Morris Marketing Group Inc. · creditor: Trade creditors (aggregate as reported) · currency: CAD
- unsecured creditorsnote: Approximately 30 employees; classified by the Debtor as unsecured debt (not identified as preferred). · page: 5 · basis: Debtor's calculated employee unsecured termination claims based on the Ontario Employment Standards Act · amount: 1100000 · debtor: Morris Marketing Group Inc. · creditor: Employees (unsecured termination claims) · currency: CAD
- unsecured creditorsnote: Stated as none by the Proposal Trustee; a priority/preferred claim class under the BIA scheme of distribution. · page: 7 · as of: Filing Date · basis: Document states: 'As at the Filing Date, there are no known Claims in respect of Crown Claims' · amount: 0 · debtor: Morris Marketing Group Inc. · creditor: Crown Priority Claims · currency: CAD
- secured creditorsnote: Related party (parent company). Figure is the amount Elm 'is expected to file' as a secured claim in a liquidation/bankruptcy scenario, covering Shared Services rendered after registration of its security through to the Filing Date; not a confirmed current balance. Secured Claims are Unaffected Claims and do not vote/receive distributions under the Amended Proposal. · page: 10 · as of: Filing Date · amount: 1400000 · debtor: Morris Marketing Group Inc. · creditor: Elm Street Technology, LLC · currency: CAD · security: General security agreement dated August 27, 2025 granted by Morris to Elm to secure payment of Management Fees under the Shared Services Agreement
- recovery outcomeentries: basis: plan · quote: Priority Claims shall vote as part of the Affected Creditor Class and shall be paid in full without interest out of the Proposal Consideration (defined below), in priority to Affected Creditors in accordance with the scheme of distribution set forth in the BIA. · pct of: unstated · outcome: paid_in_full · class key: preferred · stated by: proposal_trustee · class label: Priority Claims · interim final: unstated · claims qualifier: unstated; basis: plan · quote: The Secured Creditors are not entitled to vote on the Amended Proposal or receive any distributions under the Amended Proposal. · pct of: unstated · outcome: nil · class key: secured · stated by: proposal_trustee · class label: Secured Creditors · interim final: unstated · claims qualifier: unstated; basis: plan · quote: Related Party Creditors are not part of the Affected Creditor Class for the purposes of the Proposal and as such are not entitled to vote on the Amended Proposal and will not be paid any distribution under the Amended Proposal. · pct of: unstated · outcome: nil · class key: unsecured · stated by: proposal_trustee · class label: Related Party Creditors · interim final: unstated · related party: true · claims qualifier: unstated; basis: liquidation_alternative · quote: the net cash flow to be realized from a liquidation of the Debtor's assets is estimated to be approximately $4.8 million. · pct of: unstated · outcome: distribution · pct low: 38.5 · pct high: 38.5 · class key: unsecured · stated by: proposal_trustee · class label: Unsecured Creditors (liquidation/bankruptcy scenario) · interim final: unstated · claims qualifier: unstated; basis: plan · quote: the net estimated recovery to: the Unsecured Creditors in a liquidation/bankruptcy scenario is 38.5% versus approximately 40.3% in the Proposal scenario. · pct of: unstated · outcome: distribution · pct low: 40.3 · pct high: 40.3 · class key: unsecured · stated by: proposal_trustee · class label: Affected Creditors (Proposal scenario) · interim final: unstated · claims qualifier: unstated · stated on: 2025-12-23 · table missing: