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On January 19, 2011, on the application of Wells Fargo Capital Finance Corporation Canada (“Wells Fargo”), 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 Colonial Cookies Corporation (“Colonial” 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 Colonial.
In accordance with the provisions of the BIA, a Notice and Statement of the Receiver was mailed to all known creditors of the Company on January 26, 2011.
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On June 22, 2011, the Court approved the Order in the same form as presented in the Motion Record.
On June 13, 2011, the Receiver prepared its third report to the Court to update the Court on the Receiver’s activities since its second report and to seek an order (i) declaring that the date of the initial bankruptcy event for the purpose of section 81.3 of the BIA is March 9, 2011, the date of bankruptcy; (ii) authorizing the Receiver to pay the former employees or Service Canada, the claims under section 81.4 of the BIA; (iii) declaring that the Benefits Indebtedness and the Atlantic Claim are not entitled to any security or priority under 81.4 of the BIA; (iv) authorizing the payment of claims pursuant to 81.6 to a maximum amount of $630,176.43 and authorizing a distribution of the 81.6 amount to Industrial Alliance Insurance and Financial Services Inc.; (v) approving the Receiver’s Third Report and its activities as set out therein; (vi) approving the accounts of the Receiver’s and that of its counsel, Fraser Milner Casgrain LLP; (vii) approving the payment by the Receiver to KCH of any remaining monies held by the Receiver; (viii) discharging the Receiver, subject to the Receiver completing its duties and obligations as described in the Third Report and (ix) declaring that PwC is released and discharged from any and all liability. A motion will be heard on June 22, 2011.
On March 10, 2011, the Court approved an order authorizing the Receiver to make an interim distribution to KCH in the amount of $1,000,000 and such subsequent distributions to KCH as the Receiver determines appropriate.
A motion will be heard on March 10, 2011, for approval from the Court for a distribution to Kitchener Colonial Holdings Inc. (“KCH”) that was adjourned previously.
On February 22, 2011, the Court granted Orders, (a) the Approval and Vesting Order, which approved for the sale transaction contemplated by the Stalking Horse Asset Purchase Agreement of substantially all of the Property to Weston Food Canada Inc., in accordance with the terms of the Purchase Agreement; and (b) the Distribution Order, which (i) approved the First and Secord Reports of the Receiver and the Receiver’s activities as detailed therein; (ii) temporarily sealing Appendix "E" and "F" of the Second Report; (iii) approved a distribution to Wells Fargo Capital Finance Corporation Canada (the “Bank”), in the amount sufficient to pay in full all of the liabilities of Colonial to the Bank, subject to the Receiver maintaining sufficient reserves as detailed in its Second Report.
The relief sought to make a distribution to Kitchener Colonial Holdings Inc. has been adjourned to a later date. Copies of these orders and the Honourable Mr. Justice Morawetz’s Endorsement are posted under the Court Order tab.
On February 17, 2011, the Receiver prepared its Second Report to the Court to provide the Court with an update on (i) the Receiver's activities since its appointment; (ii) the Receiver's receipts and disbursements to February 11, 2011; (iii) the claims asserted by various parties for the repossession of goods in the Company's possession; and (iv) the results of the Stalking Horse Process, and the sale of substantially all of the Property to Weston Food Canada Inc. ("Weston"), subject to the Court's approval; and to seek an order from the Court:
A motion will be heard February 22, 2011.
On January 27, 2011, the Court granted the “Stalking Horse and Bidding Procedures Order”: i) authorizing and directing the Receiver to enter into the Stalking Horse APA between the Receiver and Weston Foods (Canada) Inc., and approving and accepting the Stalking Horse Bid for the purpose of conducting the Stalking Horse Sale Process in accordance with the Bidding Procedures; and, ii) approving the Bidding Procedures.
This Web site will be updated as information becomes available.