Ontario · Proposal
Proposal Trustee's Second Report dated March 5, 2024.pdf
Court officer report · 5 March 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 filing4 verified
- operational summaryThe report focuses on a legal dispute over WEPPA subrogation rights affecting distributions to former employees under the accepted proposal, rather than ongoing business operations; Metroland's inventory was placed into receivership by CIBC in December 2023.
- recovery outcomeentries: basis: estimated · quote: As such, our interpretation is that given employee termination and severance claims will rank pari passu with all other unsecured creditors for a distribution of approximately 15 cents on the dollar, Service Canada's subrogated rights under section 36(1) would entitle it to a pro-rata distribution of 15 cents on the dollar for the amount it pays under WEPPA. · pct of: unstated · outcome: distribution · pct low: 15 · pct high: 15 · class key: unsecured · stated by: proposal_trustee · class label: unsecured creditors (former employees pro rata with Canada, if DOJ's interpretation incorrect) · interim final: unstated · cents on dollar: 15 · claims qualifier: unstated; basis: estimated · quote: Based on our current estimates, we believe that total distributions from Service Canada under WEPPA in respect of the receivership may be in the approximate amount of $4.6 million, and Service Canada would receive an approximate 15% recovery ($690,000) on this amount pursuant to distributions under the Accepted Proposal. · pct of: unstated · outcome: distribution · pct low: 15 · pct high: 15 · class key: weppa · stated by: proposal_trustee · amount low: 690000 · amount high: 690000 · class label: Service Canada (subrogated WEPPA recovery) · creditor name: Service Canada · interim final: unstated · cents on dollar: 15 · claims qualifier: unstated; basis: estimated · quote: In the event that the DOJ's interpretation of Section 36(1) of WEPPA is incorrect and Canada's subrogation rights would entitle it to a pro rata distribution on a pari passu basis with other unsecured creditors, the proposed distribution to unsecured creditors would be approximately 16.5 cents on the dollar, based on the quantum of claims received to date. · pct of: unstated · outcome: distribution · pct low: 16.5 · pct high: 16.5 · class key: unsecured · stated by: proposal_trustee · class label: Former Employees (residual claim, if DOJ's interpretation incorrect) · creditor name: Former Employees · interim final: unstated · cents on dollar: 16.5 · claims qualifier: unstated; basis: estimated · quote: As discussed in the Report on the Second Amended Proposal, this scenario provided Former Employees with the pension priority and a WEPPA equivalent basket. In addition, employees would have received a distribution of approximately 5 cents on the dollar (now calculated at slightly less at 4 cents due to the quantum of the employees claim) for their residual claims. · pct of: unstated · outcome: distribution · pct low: 4 · pct high: 4 · class key: weppa · stated by: proposal_trustee · class label: Former Employees (residual claim, if WEPPA did not apply) · creditor name: Former Employees · interim final: unstated · cents on dollar: 4 · claims qualifier: unstated; basis: estimated · quote: Trade creditors would have similarly received approximately 4 cents on the dollar pursuant to this scenario. · pct of: unstated · outcome: distribution · pct low: 4 · pct high: 4 · class key: weppa · stated by: proposal_trustee · class label: trade creditors (if WEPPA did not apply) · interim final: unstated · cents on dollar: 4 · claims qualifier: unstated; basis: liquidation_alternative · quote: In a bankruptcy, the Proposal Trustee is of the view that the balance of the Secured Creditors claim continues to exceed the liquidation value of the assets, providing no projected recovery to the unsecured or preferred creditors. · pct of: unstated · outcome: nil · class key: preferred · stated by: proposal_trustee · class label: unsecured or preferred creditors (in a bankruptcy) · interim final: unstated · claims qualifier: unstated · stated on: 2024-03-05 · table missing: A table illustrating the total estimated distribution to Former Employees and trade creditors pursuant to this scenario is included at the end of this section.; A table illustrating the total estimated aggregate distribution to Former Employees can be found at the end of this section.; A table illustrating the total estimated distribution to Former Employees, in aggregate, and trade creditors pursuant to the three discussed permutations can be found below.
- report date5 March 2024
- report noSecond Report