Haliburton Chrysler: four years old, $6.1 million short

Haliburton Chrysler Dodge Jeep Ram Ltd. was incorporated in January 2022 and operated a car dealership out of leased premises at 13533 Hwy 118 in Haliburton, Ontario — a town of a few thousand people in the Haliburton Highlands.

It was deemed to have made an assignment in bankruptcy on May 5, 2026, and ceased operations that day, per Trustee's Preliminary Report, Section A.

Four years and four months.

The sale that did not happen

The route into bankruptcy is worth setting out because it is the most common way an NOI ends and the least often described.

The Toronto-Dominion Bank issued a notice of intention to enforce its security in April 2025. The company entered into a forbearance agreement with TD.

Nearly a year later, on April 2, 2026, the company filed a notice of intention to make a proposal, with MNP Ltd. as proposal trustee. The purpose is stated plainly: to allow the company to explore the possibility of selling the assets and business as a going concern to an interested party that had been identified.

The company failed to lodge a proposal with the proposal trustee on or before May 4, 2026, after it was determined that a sale to that interested party was not viable. It was thereupon deemed to have made an assignment, per Trustee's Preliminary Report, Section A and Certificate of Assignment, May 7, 2026.

An NOI built around a single identified buyer is a bet with a hard deadline attached. Section 50.4 gives thirty days plus extensions; the deemed assignment is automatic on failure to file. There is no discretion at the end, and no second process — when the buyer walked, the statute did the rest.

MNP has since worn a third hat. On May 13, 2026 it was also appointed receiver of the company's property under a general security agreement dated May 24, 2022, per Trustee's Preliminary Report, Section A.

The numbers

The sworn statement of affairs puts total assets at $1,155,885.23 and total liabilities at $7,257,949.16 — a deficiency of $6,102,063.93, per Statement of Affairs, May 5, 2026.

Every asset is pledged. The realizable values are:

• Various auto parts — $486,574.93, subject to inventory count
• Vehicles (10) — $374,150.00
• Special tools — $252,000.00
• Accounts receivable — $43,155.30, against a book value of $73,236.03
• Equipment — $5.00, being five separate leased items each carried at $1

The vehicles are broken down in a way that tells the whole story of dealership finance: two new vehicles at $75,150 subject to TD floor plan; three used at $95,000 subject to TD floor plan; and five used at $204,000 subject to CRA liens and TD floor plan.

The five leased equipment items each valued at a dollar — Wells Fargo, a Xerox C8130, Easylease Corp, CWB, Vault — are the honest accounting of a leased asset in a bankruptcy: the lessor takes it back, and the estate's interest is nominal.

On the reasons for failure, management's own selections on the statement of affairs are: poor financial performance, lack of working capital or funding, increased cost of doing business, and tax liabilities. The trustee adds one more from its discussions with management — poor performance "in part from being a fairly recent start-up", per Trustee's Preliminary Report, Section A.

Who is secured, and who is first

A PPSA search on April 1, 2026 showed six registered secured creditors: 2M7 Financial Solutions, 3201961 Ontario Inc. o/a Sheaves Capital, the Canada Revenue Agency, TD, CWB National Leasing Inc. and Vault Credit Corporation, per Trustee's Preliminary Report, Section B.

CWB and Vault hold security over leased equipment. TD holds a general security agreement over all assets, subject to any valid security interest in the leased equipment. 2M7 and Sheaves registered general security agreements that rank behind TD.

And the CRA has registered liens on five vehicles in respect of HST owing — which is why those five used vehicles carry two encumbrances on the statement of affairs.

TD's exposure is set out in the creditor list in three parts: a vehicle floor plan of $714,985.16, an operating line of $440,895.07, and a contingent cross-guarantee of $2,442,201.00, per Affidavit of Mailing, May 12, 2026, Exhibit "A" (creditor mailing list).