Atikokan Forest Products Ltd.

In Receivership

Page last updated: July 11, 2012

This page is for information purposes only and you should consult your professional adviser if you have any questions or are uncertain as to your rights or obligations.

On January 4, 2011, on the application of G.E. Canada Equipment Financing G.P.  (“GE”), an Order was granted by the Ontario Superior Court of Justice (Commercial List) (the “Court”), pursuant to section 243(1) of the Bankruptcy and Insolvency Act, R.S.C. 1985, c.B-3, as amended (the “BIA”) and section 101 of the Courts of Justice Act, R.S.O. 1990, c.C-43, that appointed PricewaterhouseCoopers Inc. as receiver (the "Receiver") of all of the assets, undertakings and properties (the “Property”) of Atikokan Forest Products Ltd. (“Atikokan” or the “Company”). On the same day, the Court authorized the Receiver to carry out and conduct a sales process in respect of all of the Property of Atikokan.

In accordance with the provisions of the BIA, a Notice and Statement of the Receiver was issued to all known creditors of the Company on January 14, 2011.

266 KB Notice and Statement of the Receiver dated January 14, 2011
266 KB Blank Proof of Claim Form

Financial Services Commission of Ontario has appointed Mackenzie Financial Corporation (“Mackenzie”) to be the Administrator of the Pension Plan for the Employees of Atikokan Forest Products Ltd. for the Mackenzie Financial Corporation Defined Contribution Pension Plan effective April 21, 2011. For further information, please contact Mackenzie’s Groups & Pension Department directly at 1-800-665-0513.

Status of File as of July 11, 2012

On July 10, 2012, the Court granted an Order approving (i) the Sixth and Seventh Reports of the Receiver; (ii) the distribution of $3,000 to Buchanan Sales Inc. In full satisfaction of Buchanan Sales’ secured interest in the rolling stock; (iii) the distribution of $640,000 from the monies remaining to G.E. Canada Equipment Financing G.P. (“GE”); (iv) the fees and disbursements of the Receiver and Receiver’s Counsel; (v) distribution of the remaining funds to GE; and (6) discharge of the Receiver.

Status of File as of June 29, 2012

On June 28, 2012, the Receiver filed its Seventh Report to update the Court with respect to:

  1. The activities of the Receiver since the date of the Sixth Report;
  2. The results of the liquidation of the Company’s assets pursuant to the Agency Sale Agreement;
  3. The efforts made by the Receiver to sell the real property owned by Atikokan, which includes the Atikokan Site and 22 Maple Crescent, Atikokan, Ontario; and
  4. The receiver’s statement of cash receipts and disbursements from the Date of Appointment to June 8, 2012;

    and to seek an order of the Court:

  5. Approving the activities of the Receiver as set out in the Sixth Report and the Seventh Report including the Receiver’s Statement of Cash Receipts and Disbursements;
  6. Sealing Confidential Appendix “A:, containing a summary of the bids received for the Atikokan Site;
  7. Approving the GE Distribution;
  8. Approving the Buchanan Sales Distribution;
  9. Approving the fees and disbursements of the Receiver and its counsel, as set out in the Seventh Report and the Fee Affidavits;
  10. Approving the distribution of the remaining monies in relation to the Atikokan Property to GE;
  11. Discharging the Receiver subject to the Receiver completing its administration of the Receivership Proceedings and completing the Remaining Duties; and
  12. Declaring that PwC is immediately released from any liability that PwC now has or may have.

A motion will be heard on July 10, 2012.

Status of File as of September 2, 2011

On Tuesday, September 27th to Wednesday, September 28, 2011, Maynards Industries Ltd. will have an auction at the Atikokan site at Highway 623 Sapawa Road, Sapawa, Ontario. Further details can be found on Maynards’ website at http://www.maynards.com/auctions/industrial/auction_details?eventId=AAKPW100688.

Status of File as of August 12, 2011

On August 11, 2011, the Court granted an order (i) approving the Agency Sale Agreement between the Receiver and Maynards Industries Ltd. relating to the liquidation of the Atikokan Property; and (ii) extending the deadline for finalizing an APA in the Atikokan Sale Process, as described in paragraph 12 (k) of the Receiver’s Report dated December 30, 2010 to July 22, 2011, nunc pro tunc.

Status of File as of August 11, 2011

On August 11, 2011, the Receiver prepared its Sixth Report to advise and update the Court with respect to (i) a meeting held on August 10, 2911, among the Receiver, the Town of Atikokan and its consultants and legal counsel, EACOM Timber Corporation and the Rainy Lake Tribal Council, to understand what efforts the Town and other had with respect to determining whether an ‘en bloc’ sale of the Atikokan Property is currently available; (ii) to summarize the Receiver’s earlier efforts to determine whether a wood supply, acceptable to EACOM, as the then purchaser, was available to the Receiver or EACOM on the terms and conditions set out in the EACOM Transaction; and (iii) the unfavourable impact of delaying the sale of the Atikokan Property pursuant to the Agency Sale Agreement.

Status of File as of August 4, 2011

On July 27, 2011, the Receiver prepared its Fifth Report to advise and update the Court with respect to: (i) the status of the Atikokan Sale Process; (ii) the termination of the EACOM Transaction; (iii) the activities undertaken by the Receiver; (iv) the outcome of the SFL Motion; (v) the results of the review of the security granted by Atikokan in favour of its secured creditors; (and (vi) to seek an Order (a) extending the Atikokan Sale Process timeline for finalizing and executing an agreement with the successful bidder up to and including July 22, 2011, nunc pro tunc; (b) approving the Agency Sale Agreement between the Receiver and Maynards Industries relating to the liquidation of the Atikokan Property; (c) increasing the Receiver’s borrowing limit to $425,000; and (d) approving the Reports and activities of the Receiver as described in the Reports.

On August 3, 2011, a motion was heard and an Order approved for the above matters, except (i) approval of the Agency Sale Agreement between the Receiver and Maynards; and (ii) extension of the Atikokan Sale Process timeline, which were adjourned to August 11, 2011.

Status of File as of May 4, 2011

On May 2, 2011, the Receiver prepared its Third Report to update the Court on the status of the Atikokan Sale Process and to: (i) provide the Court with a summary of the transaction entered into on April 20, 2011, between the Receiver and EACOM Timber Corporation; (ii) summarize discussions the Receiver has engaged in an attempt to determining sources for obtaining the Wood Allocation; (iii) advise the Court of the notice the Receiver provided to the Ministry of Northern Development, Mines and Forestry’s (the “MNDMF”) counsel on April 27, 2011, pursuant to the endorsement of the Honourable Mr. Justice Morawetz made on April 19, 2011; (iv) update the Court on the status of discussions between GE and the MNDMF and Mister Dennis Brown, the mayor of Atikokan, and the MNDMF; and, (v) set out the Receiver’s activities with respect to the development of a plan for carrying out Atikokan’s duties and obligations in maintaining the Sapawe Forest pursuant to the Sustainable Forest License.

Status of File as of April 19, 2011

On April 18, 2011, the Receiver prepared its Second Report to update the Court on the status of the Atikokan Sale Process and to recommend that the Court grant an adjournment of the SFL Motion until the Atikokan Sale Process is complete and the Receiver, the Successful Bidder and/or GE have had an opportunity to make representations before the Minister in connection with the Wood Allocation and make an Order, temporarily sealing Confidential Appendix A until such time as a transaction for the sale of the Atikokan Property is closed. An order was granted on April 19, 2011.

Status of File as of January 17, 2011

On January 13, 2011, PricewaterhouseCoopers Inc. filed its First Report as Receiver in support of a motion by the Receiver for an order approving the Receiver’s newspaper advertisement and teaser necessary to give effect to the Sales Process. The motion was heard on January 14, 2011, and the Court approved an Order for the Sale Process Forms of Advertisement and “Teaser”.

This Web site will be updated as information becomes available.

For more information, please contact: Donna Smith, Telephone: +1 416 941 8383, ext. 14288, or via Email.