Canadian Petcetera Limited Partnership, “Petcetera”
Proposal Information
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.
Status of file at June 28, 2011
On April 21, 2011 the financial transaction to affect the restructuring process for Petcetera was completed and the Trustee received $1,369,737.00 for distribution to the unsecured creditors.
The distribution of funds was completed and mailed to creditors on June 28, 2011. Please allow for a greater than normal delivery time, due to the recent Canada Post strike delay.
A full listing of all dividend payments made to the unsecured creditors is available on this website under the "Corporate Restructuring" header.
The Trustee will now seek its discharge on the Petcetera matter, and therefore you will receive notification of the discharge process during the summer of 2011.
Status of file at May 13, 2011
On April 21, 2011 the transaction between the Trustee and Buyer closed. The Trustee is now in receipt of the $1,369,737 funds available for distribution.
Upon completion of additional statutory duties the funds will be distributed to proven creditors by the end of June 2011.
Status of file as of March 24, 2011
Effective March 23, 2011, the Supreme Court of British Columbia approved the Second Proposal of Petcetera.
The next several steps of the Restructuring Agreement will take place over the next few weeks, and involve 'papering' the transaction by way of transferring shares and the completing the due diligence process. We will post further updates to this website, as they occur.
Status of file as of March 16, 2011
On March 16, 2011, the creditors, by the requisite majority vote of the proven claims, approved Proposal # 2, as contemplated in the Amended Restructuring Agreement. A hearing to obtain court approval of Proposal # 2 is scheduled for Wednesday, March 23, 2011 at 9:00 am.
We urge all creditors who have net yet filed a claim in the restructuring process, to do so as soon as possible. A Proof of Claim form can be found on this website, under the Corporate Restructuring heading.
We advise creditors that a distribution will take place subsequent to the closing of the tax loss transaction, which is currently anticipated to be approximately mid April, 2011.
Questions can be directed to Ms. Kiran Chahal, via the link on this website.
Status of file as of March 14, 2011
Effective March 10, 2011, Canadian Petcetera LP filed its second proposal as contemplated in the Amended Restructuring Agreement. The following documents have been posted to this website, under the Corporate Restructuring heading:
- The Second Proposal
- Updated Statement of Affairs
- Notice to Creditors
- Trustee's Report to Creditors on the 2nd Proposal
A creditor meeting to consider Proposal # 2 will take place on Wednesday, March 16, 2011, at the Trustee's offices. We advise that if you filed a Proof of Claim, (with or without a proxy), and a voting letter in Proposal # 1, that those same voting letters and claims will automatically count in Proposal # 2's proceedings.
We urge all creditors who have not yet filed a claim in the restructuring process to do so as soon as possible. A Proof of Claim form can be found on this website, also under the Corporate Restructuring heading. Questions can be directed to Ms. Kiran Chahal, via the link on this website.
Status of file as of March 3, 2011
Effective March 3, 2011, Canadian Petcetera Limited Partnership was assigned into bankruptcy. A copy of the Notice to Creditors and the First Meeting of Creditors, and a new Statement of Affairs, appears on this website under the Corporate Restructuring heading.
We remind creditors that today's bankruptcy proceeding is simply a step in the overall restructuring process, which the Court has previously approved.
If you have already filed your claim in the recent (January 2011) Proposal # 1 process, there is no need to file another claim in the bankruptcy, as the Court has approved streamlining the administrative process, and your claim submitted in the Proposal, will automatically count in the bankruptcy, and the (yet to be filed) Proposal # 2.
Creditors not yet having filed a claim against the company, are requested to file their claim without delay. A Proof of Claim form can be found under the Corporate Restructuring heading on this website.
Questions can be directed to Ms. Chahal via the link on this website.
Status of file as of February 24, 2011
On February 14, 2011, the Court approved the first proposal contemplated by the Amended Restructuring Agreement. The court further amended the procedural order to provide additional disclosure given a modification to the Transactions requested by 089.
Status of file as of February 10, 2011
On January 28, 2011, the creditors, by unanimous vote of the proven claims, approved the joint proposal. A hearing to obtain court approval of the joint proposal is scheduled for Monday February 14, 2011 at 9:00 am.
Status of file as of January 13, 2011
On December 14, 2010, the Trustee and Receiver entered into a restructuring agreement with 0896095 B.C. Ltd. ("089"), Daniel S. Urbani and Urbani Holdings #1 Ltd. (the "Amended Restructuring Agreement") to realize upon tax losses incurred by Canadian Petcetera LP ("LP"). Completion of the transactions outlined in the Amended Restructuring Agreement will provide approximately $1.3 million to unsecured creditors who would otherwise recover no monies on their claims.
The Amended Restructuring Agreement contemplates a number of transactions, several of which affect creditors of Petcetera and, in some cases, require creditor approval. Those transactions are as follows:
- the Trustee is to file the First Proposal on behalf of Canadian Petcetera Warehouse Inc. ("GP") and LP, on a consolidated basis, which will result in the assignment of all of the unsecured claims against GP to LP and an agreement to postpone those claims in return for an undertaking by GP to cause LP to file a second proposal which contemplates a cash distribution to creditors. Creditors will be invited to submit proofs of claim against Petcetera and vote on the First Proposal;
- subsequent to court approval of the First Proposal, LP will be assigned into bankruptcy again; and,
- the Trustee is to file the Second Proposal on behalf of LP which will offer approximately $1.3 million to the unsecured creditors of Petcetera in return for an assignment of their claims against LP. Creditors will have an opportunity to submit proofs of claim against Petcetera and vote on the Second Proposal (unless they have already done so in respect of the First Proposal).
Upon creditor and Court approval of the Second Proposal, and after certain other conditions are met, 089 will pay $1,369,737 to the Trustee to be distributed to the unsecured creditors of LP as follows:
- 100% of each unsecured creditors’ proven claim up to a maximum of $500;
- 50% of the amount each unsecured creditor’s proven claim in excess of $500 up to a maximum of $1,000; and,
- each unsecured creditor’s pro rata share, of the remaining funds after the payments provided for above
For example, a creditor with a claim of $2,000 will receive: (i) $500 on account of the first $500 of its claim; (ii) $250 on account of the next $500 of its claim; and, (iii) its pro rata share of the balance of the Unsecured Creditors Fund based on the remaining claim in excess of $1,000.
On December 16 and 17, 2010, the B.C. Supreme Court issued Orders that authorized the Receiver and the Trustee to complete the Amended Restructuring Agreement and authorized a streamlined creditor notice and documentation process that would simplify the administration for the First Proposal, the subsequent bankruptcy of LP and the Second Proposal. Copies of the Court Orders (including copies of the Amended Restructuring Agreement) as well as the Receiver and Trustee Reports to Court are posted on this website under the category "Corporate Restructuring". Creditors should note that certain notices during these proceedings shall be posted on this website only.
On January 7, 2011, the First Proposal was filed with the Office of the Superintendent of Bankruptcy. Notice of the First Proposal and the following documents were mailed to creditors on Wednesday January 12, 2011:
- Letter to creditors dated Wednesday January 12, 2011
- First and Second Proposals
- Updated Statements of Affairs for LP and GP
- Trustee's Report to Creditors
- Proof of Claim and Proxy
- Voting Letter
Copies of these documents are posted on this website under the Corporate Restructuring Category.
A creditor meeting has been scheduled to be held at the offices of the Trustee (7th floor, 250 Howe St., Vancouver, B.C.) at 11:00 am on Friday January 28, 2011. Creditors who wish to vote on the First Proposal must deliver to the Trustee a proof of claim prior to the meeting of creditors. If a creditor is unable to attend in person, he may appoint another person by proxy to represent him or he may lodge a voting letter with the trustee in advance of the meeting. Claims and votes lodged in the First Proposal shall be utilized in the subsequent bankruptcy proceedings for LP and the Second Proposal pursuant to the simplified administration process sanctioned by the Court.
Creditors are invited to attend a conference call hosted by the Trustee to be held at 11:00 am on Wednesday, January 19, 2011. The purpose of the call is to briefly outline the restructuring process, the required insolvency proceedings and the requirements of creditors. Dial in information: 1-866-792-7717, participant code: 672701#.
Creditor approval is required to complete the Amended Restructuring Agreement which will result in the approximately $1.3 million being made available for distribution to the creditors. As there are no other sources of recovery for the unsecured creditors and the Trustee considers the value received and allocated to the creditors pursuant to the Amended Restructuring Agreement to be fair, the Trustee has recommended that the creditors vote in favour of the First and Second Proposal.
Status of file as of June 23, 2009
On June 23, 2009 PricewaterhouseCoopers Inc. received court approval to engage Great American Group to conduct a liquidation sale.
On June 16, 2009 PricewaterhouseCoopers Inc. was appointed as Trustee in Bankruptcy and appointed Receiver Manager of Canadian Petcetera Limited Partnership (the 'Company') by a court order. The Receiver Manager plans to keep the stores open and operate them through a liquidation process, expected to begin by the end of June, 2009. During the liquidation period all animals in the Receiver Manager's care will be tended to by store staff in the usual manner. The Receiver Manager has requested that the animal shelters and non-profit societies that provided animals to Petcetera to care for while awaiting adoption take these animals back into their custody .The small animals and fish purchased by Petcetera for resale will be sold, and in the meantime cared for by store staff in the same manner as before the Receivership. Petcetera employs 704 active employees most of whom are being rehired by the Receiver Manager to support the efforts to liquidate the Company's inventory over the next three to four months.
Status of file as of May 15, 2009
On May 15, 2009 the Court granted an extension to the Stay of Proceedings till June 29, 2009.
Status of file as of Apr 19, 2009
On April 19, 2009 the Court granted an extension to the Stay of Proceeding till May 15, 2009.
Status of file as of Mar 20, 2009
On March 20, 2009 the Company filed a Notice of Intention to Make a Proposal under Section 50.4 of the Bankruptcy and Insolvency Act and PricewaterhouseCoopers Inc. was appointed as Trustee.
This Web site will be updated as information becomes available.
For more information, please contact: Kiran Chahal , Telephone: +1 604 806 7787, Fax: +1 604 806 7806 (clearly addressed re Petcetera).
