Ontario · Receivership (court-appointed)
Notice of Application dated June 3, 2025
Application / notice of application · 3 June 2025
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What we verified from this filing15 verified
- courtONTARIO SUPERIOR COURT OF JUSTICE (COMMERCIAL LIST)
- court file noCV-25-00744650-00CL
- proceeding typereceivership_court
- provinceONTARIO
- statutory basissubsection 243(1) of the Bankruptcy and Insolvency Act and section 101 of the Courts of Justice Act
- statutory basisSUBSECTION 243(1) OF THE BANKRUPTCY AND INSOLVENCY ACT, R.S.C. 1985, c. B-3, AS AMENDED AND SECTION 101 OF THE COURTS OF JUSTICE ACT, R.S.O. 1990, c. C.43, AS AMENDED
- commencement date3 June 2025
- applicantRoyal Bank of Canada
- appointeemsi Spergel inc.
- appointee rolereceiver
- secured creditorsnote: Amounts not stated. Individual registrants named in service list include Bank of Montreal, Bank of Nova Scotia - DLAC, Canadian Dealer Lease Services Inc., Canadian Western Bank, Canadian Western Bank Leasing Inc. (x2 addresses), Coast Capital Equipment Finance Ltd., Cold Iron Truck Center Inc., CWB National Leasing Inc., Daimler Truck Financial, Daimler Truck Financial Services Canada Corporation, De Lage Landen Financial Services Canada Inc., eCapital Freight Factoring Inc., LBEL Inc., Mercedes-Benz Financial Services Canada Corporation, Meridian OneCap Credit Corp. (x2 addresses), Mitsubishi HC Capital Canada Leasing Inc., Vault Credit Corporation, VFS Canada Inc. RBC is stated to hold the only General/blanket registration against Kapila, KGS, 266, 262, and Kapila AB (other than consumer goods); all other registrants are limited/equipment-specific or subordinate in registration order. · page: 6 · debtor: Kapila Transport Inc. (51 registration families) and KGS Freight Inc. (2 registration families) · creditor: PPSA equipment financiers (PMSI class) · currency: CAD · security: PPSA registrations limited on their face to specific equipment/motor vehicles and/or registered after the General RBC Registration
- secured creditorsnote: CAD portion of 'January Demanded Indebtedness' per First Demand Letters dated 2025-01-28 (accompanied by s.244 BIA notices); stated as of January 21, 2025 plus accruing interest and costs. Personal guarantees also exist from Gitish Kapila and Meha Kapila (individual guarantors) per service list. · page: 7 · as of: 2025-01-21 · amount: 2870708.42 · debtor: Kapila Transport Inc. and 2669621 Ontario Inc. (the Borrowers) · creditor: Royal Bank of Canada · currency: CAD · security: First charge/mortgage on Ayr Property ($6,750,000 principal, registered 2019-01-17, amended 2023-06-28); first charge/mortgage on Putnam Property ($5,500,000 principal, registered 2023-06-29); general assignments of rents on both properties; general security agreements (PPSA) granted by 266, Kapila, KGS, 262 and Kapila AB; chattel mortgage dated 2016-04-05 granted by Kapila; corporate guarantees from 266, 262, Kapila AB and KGS limited to $3,400,000/$3,400,000/$3,400,000/$2,600,000 (re Kapila obligations) and from Kapila, 262, KGS and Kapila AB each limited to $6,800,000 (re 266 obligations)
- secured creditorsnote: USD portion of 'January Demanded Indebtedness' per First Demand Letters dated 2025-01-28; stated as of January 21, 2025 plus accruing interest and costs · page: 7 · as of: 2025-01-21 · amount: 161106.6 · debtor: Kapila Transport Inc. and 2669621 Ontario Inc. (the Borrowers) · creditor: Royal Bank of Canada · currency: USD · security: Same Security as CAD component (mortgages, GSAs, PPSA registrations, corporate guarantees) - see corresponding entry
- secured creditorsnote: 'February Demanded Indebtedness' per Second Demand Letters dated 2025-02-27; stated as of February 19, 2025 plus accruing interest and costs; together with January Demanded Indebtedness comprises the 'Demanded Indebtedness', stated to remain outstanding · page: 7 · as of: 2025-02-19 · amount: 5835092.66 · debtor: Corporate Credit Parties (Kapila Transport Inc., 2669621 Ontario Inc., KGS Freight Inc., 2624598 Ontario Inc., and Kapila Transport Alberta Ltd.) · creditor: Royal Bank of Canada · currency: CAD · security: Leasing (MLA) and un-matured term amounts under the Credit Agreements and Corporate Guarantees, secured by the Security described above (mortgages, GSAs, PPSA registrations)
- counselAird & Berlis LLP