Ontario · CCAA
Application Record
Application / notice of application · 21 May 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
- financial positionnote: Total liabilities figure ($65,097,466) is consistent with the affidavit's statement that the Applicants 'currently have approximately $65.1 million in outstanding debt.' Applicants are described as insolvent notwithstanding book-value solvency, due to an immediate liquidity crisis. · page: 43 · as at: 2023-09-30 · basis: Unaudited/draft 2023 consolidated financial statements (book value); Total Liabilities and Shareholders' Equity figure ($68,218,871) mirrors Total Assets under the balance sheet identity. Affiant states book value of assets exceeds book value of liabilities per these unaudited statements, but in a forced liquidation the realizable value of assets may not be sufficient to satisfy senior secured indebtedness to BMO and claims of all other creditors. · scope: Consolidated - Eastern Meat Solutions Inc. and its subsidiaries (Sierra Custom Foods Inc., Sierra Supply Chain Services Inc.) · currency: CAD · total assets: 68218871 · total liabilities: 65097466
- secured creditorsnote: Senior secured operating lender. Total outstanding under BMO Credit Facilities as at May 21, 2024 stated in two currencies: CAD $8,037,369.58 and USD $1,448,812.06 (see separate USD entry for same debt). Guarantees originally executed Sept 2013, acknowledged/confirmed Sept 14, 2022; each of Sierra Foods and Sierra Services guarantees Eastern Meat's debt, and Eastern Meat/Sierra Services guarantee Sierra Foods' debt. · page: 44 · as of: 2024-05-21 · amount: 8037369.58 · debtor: Eastern Meat Solutions Inc. (borrower); guaranteed by Sierra Custom Foods Inc. and Sierra Supply Chain Services Inc. · creditor: Bank of Montreal (BMO) · currency: CAD · security: General security agreements dated Sept 30, 2013 (ackn. Sept 14, 2022) over all present and after-acquired personal property of Eastern Meat, Sierra Foods and Sierra Services; Section 427 Bank Act security (Eastern Meat); movable hypothec (Eastern Meat); hypothecation of negotiable collateral (Eastern Meat); second amended and restated assignment of insurance (Sept 14, 2022); PPSA registrations (ON, BC, AB, SK, MB, QC, NB, NS) and UCC registrations in various US states. Facility limits (not balances): Revolving Facility up to $25,000,000; Hedging (demand treasury) Facility up to $2,000,000; non-revolving LC Facility up to $2,500,000.
- secured creditorsnote: USD-denominated portion of the same total outstanding balance under the BMO Credit Facilities as at May 21, 2024 (CAD portion reported separately). · page: 44 · as of: 2024-05-21 · amount: 1448812.06 · debtor: Eastern Meat Solutions Inc. (borrower); guaranteed by Sierra Custom Foods Inc. and Sierra Supply Chain Services Inc. · creditor: Bank of Montreal (BMO) · currency: USD · security: Same BMO Security as CAD-denominated entry (GSAs, Bank Act security, movable hypothec, PPSA/UCC registrations).
- secured creditorsnote: HST tax liability (deemed trust class) assessed by CRA letter dated May 2, 2024, in connection with the sale of an intangible right of $1,404,849 that occurred in January 2022; Sierra Realty was not registered under the Excise Tax Act at the time of the transaction. · page: 48 · as of: 2024-05-02 · amount: 182630.37 · debtor: Sierra Realty Corporation · creditor: Canada Revenue Agency (CRA) · currency: CAD