Ontario · CCAA
Pre-filing Report of the proposed Monitor
Pre-filing report · 4 August 2024
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 filing3 verified
- financial positionnote: Equipment Co: total assets approximately $11.4 million ($6.3M current, $5.1M non-current); total liabilities approximately $7.2 million (outstanding taxes payable $1.0M, amounts owing to Health Canada $0.3M, Vancor Note $2.1M, Vangar Note $2.2M, other loans $1.6M; no trade payables) as at July 31, 2024. Galaxie Brands: total assets approximately $6.1 million ($5.9M current, $0.2M non-current); total liabilities approximately $9.7 million (accounts payable $1.7M, outstanding taxes payable $4.1M, amounts due to related parties $3.9M) as at June 30, 2024. Totals not summed across entities per document presentation. Document also states: 'there are no registered financing statements or registered claims against either of the Debtors under the Ontario Personal Property Security Registration System.' Vancor Note ($2,756,000 principal; $2,129,425 outstanding) and Vangar Note ($2,200,000 principal; $2,218,333.33 outstanding) are both explicitly described as unsecured promissory notes; Vancor's principal is a related party (Van Iersel is President/sole shareholder of Vancor). Debtors' consolidated accounts payable balance as at July 31, 2024 totalled approximately $1,994,587 (trade creditors). · page: 9 · basis: unaudited balance sheets prepared by the Company, included in the Van Iersel Affidavit · scope: entity-level, not consolidated: separate balance sheets for Equipment Co (1000370759 Ontario Inc.) as at July 31, 2024, and Galaxie Brands Corporation as at June 30, 2024 · currency: CAD
- secured creditorsnote: Deemed trust class (quasi-governmental claim); amount stated as approximate ('approximately $4.1 million'); Galaxie Brands and CRA in continued discussions regarding a payment plan for these 'Excise Arrears'. Document separately states there are no registered financing statements or registered claims against either Debtor under the Ontario PPSA registration system (this deemed trust arises by statute, not registration). · page: 11 · as of: as of the date of the Van Iersel Affidavit (sworn August 2, 2024) · amount: 4100000 · debtor: Galaxie Brands Corporation · creditor: Canada Revenue Agency (CRA) · currency: CAD · security: Statutory deemed trust for unremitted excise duties under the Excise Act, 2001; CRA is also beneficiary of a surety bond issued by Trisura Guarantee Insurance Company in the amount of $535,000 as security for Galaxie Brands' excise tax obligations
- secured creditorsnote: Deemed trust class (quasi-governmental claim); document states amount as 'currently approximately $569,000' with no specific date given. · page: 11 · amount: 569000 · debtor: Galaxie Brands Corporation · creditor: Canada Revenue Agency (CRA) · currency: CAD · security: Statutory deemed trust for unremitted Harmonized Sales Tax (HST)