British Columbia · CCAA
First Report of the Monitor
Court officer report · 8 July 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 filing10 verified
- secured creditorsnote: Amount is the book value of the 'Credit facility' non-current liability at March 31, 2024 (stated in $000s as 11,034; the report text says 'Wells Fargo facility obligations of $11.0 million'). Revolving availability is subject to a weekly borrowing base. A US$330,000 Borrowing Base Payment was made June 27, 2024 (pre-filing); the minimum liquidity requirement was scheduled to rise from US$3 million to US$6 million on July 1, 2024. Wells Fargo had also required a ninth amending agreement granting cash dominion over collection accounts in exchange for an EBITDA waiver for Q2 2024. · page: 8 · as of: 2024-03-31 · amount: 11034000 · debtor: good natured Products Inc. (borrower); all other Petitioners are guarantors · creditor: Wells Fargo Capital Finance Corporation Canada · currency: CAD · security: First-ranking security over the GDNP Group's assets, excluding certain consumer goods and owned real estate; asset-based revolving facility under credit agreement dated August 25, 2022
- financial positionnote: Assets include cash $4,316K, receivables $7,508K, inventory $11,557K, property and equipment $44,784K, right-of-use assets $8,274K, intangibles/goodwill/customer relationships $14.3M. Liabilities: current $28,752K, non-current $56,959K. Figures in $000s converted to dollars. · page: 9 · as at: 2024-03-31 · basis: Book value; unaudited management-prepared financial statements as at March 31, 2024. The Monitor states it has not audited or verified the information. (FY2023 audited statements showed a net loss of $15.5 million; Q1 FY24 unaudited net loss $5.0 million.) · scope: Consolidated GDNP Group (all Canadian and US Petitioner entities) · currency: CAD · total assets: 91566000 · total liabilities: 85711000
- secured creditorsnote: Mortgage loan balance including current portion of long-term debt; stated as $6.4 million. Security instrument and registration not described on these pages. · page: 10 · as of: 2024-03-31 · amount: 6400000 · debtor: GDNP Canadian Entities (Ayr facility) · creditor: Royal Bank of Canada (RBC) · currency: CAD · security: Mortgage on Ayr facility, 15 Waydom Dr., Ayr, Ontario (owned)
- secured creditorsnote: Mortgage loan balance including current portion of long-term debt; stated as $12.9 million. Security instrument and registration not described on these pages. · page: 10 · as of: 2024-03-31 · amount: 12900000 · debtor: GDNP Canadian Entities (Brampton facility) · creditor: Toronto-Dominion Bank (TD) · currency: CAD · security: Mortgage on Brampton facility, 5 Abacus Road, Brampton, Ontario (owned)
- unsecured creditorsnote: Aggregate only; no individual creditors named. Monitor mailed notice to 295 known creditors on July 5, 2024. · page: 10 · as of: 2024-03-31 · basis: Book value per management's unaudited balance sheet at March 31, 2024 · amount: 20620000 · debtor: GDNP Group · creditor: Accounts payable and accrued liabilities (aggregate; trade creditors) · currency: CAD
- unsecured creditorsnote: Report states the earnout terms were satisfied as at the CCAA filing date, so this unsecured liability 'has crystalized and is no longer contingent'. Vendors not named. · page: 10 · as of: 2024-03-31 · basis: Contingent consideration liability at book value, March 31, 2024 · amount: 2219000 · debtor: good natured Products Inc. · creditor: Vendors of 2020 acquisition (contingent earnout, Ayr facility appraisal) · currency: CAD
- unsecured creditorsnote: Security/ranking not stated on these pages. Subsequent to March 31, 2024, certain holders approved an extraordinary resolution partially redeeming select debentures for common shares, reducing debt by approximately $8.6 million effective May 8, 2024. Holders not named. · page: 10 · as of: 2024-03-31 · basis: Non-current convertible debentures at book value per balance sheet; text states debentures recorded at $16.9 million including current portion · amount: 15553000 · debtor: good natured Products Inc. · creditor: Convertible debenture holders · currency: CAD
- secured creditorsnote: Mortgage loan balance including current portion of long-term debt; stated as $3.6 million. Report states all amounts are in Canadian dollars unless otherwise stated; underlying loan currency not specified. Security instrument and registration not described on these pages. · page: 11 · as of: 2024-03-31 · amount: 3600000 · debtor: GDNP US Entities (Richmond facility) · creditor: American Community Bank & Trust · currency: CAD · security: Mortgage on Richmond facility, 11413 N. Burlington Road, Richmond, Illinois (owned)
- unsecured creditorsnote: Combined figure for Western Economic Diversification Canada and a vendor take-back loan from a prior acquisition; split not stated and security status not stated on these pages. · page: 11 · as of: 2024-03-31 · basis: Other long-term debt per report text ($4.4 million, balance sheet shows $2,430K non-current plus current portion) · amount: 4400000 · debtor: GDNP Group · creditor: Western Economic Diversification Canada and vendor take-back lender (other long-term debt) · currency: CAD
- unsecured creditorsnote: Relates to right-of-use assets; lessors not named; security/ranking not stated. · page: 11 · as of: 2024-03-31 · basis: Lease liability including current portion per report text; non-current portion on balance sheet $5,004K · amount: 7300000 · debtor: GDNP Group · creditor: Lessors under finance leases (lease liability) · currency: CAD