2154015 Ontario Inc., o/a Colony Holland Lumber
Page last updated: June 25, 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 20, 2012, on the application made by Canadian Imperial Bank of Commerce (“CIBC”), 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, as amended, that appointed PricewaterhouseCoopers Inc. as receiver (the "Receiver") of all of the assets, undertakings and properties (the “Property”) of 2154015 Ontario Inc. o/a Colony Holland Lumber (“Colony Lumber” or the “Company”).
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 30, 2012.
Status of File as at June 25, 2012
On June 22, 2012, the Receiver filed its Second Report to update the Court with respect to:
- The activities of the Receiver since the Date of the First Report;
- Claims made by Watford Roof Truss Limited (“Watford”) and Pacer Building Components Inc. (“Pacer”)against the Bank, the Company and other parties;
- The Receiver’s statement of receipts and disbursements from the date of appointment to June 15, 2012;
- The completion of the sale of the Company’s retail and lumber inventory to 4536631 Canada Inc.;
- The results of the sale of the Company’s machinery and equipment by Maynards Industries Ltd.;
- The Receiver’s review of the validity and enforceability of both the Bank’s security and Rona Inc.’s security in respect of the Property and the opinion thereon of the Receiver’s independent legal counsel;
And to seek an order of the Court:
- Approving the Second Report and the activities of the Receiver;
- Approving the Receiver’s Statement of Receipts and Disbursements from the Date of Appointment to June 15, 2012;
- Authorizing the Receiver to complete a sale of the Rona Shares owned by Colony Lumber and authorizing the directing the Receiver to distribute the net proceeds of sale to Rona Inc. in respect of its secured claim in and to the Rona Shares;
- Authorizing and directing the Receiver to make distributions to Watford in the amount of $14,096.80 and Pacer in the amount of $5,547.68 in respect of amounts collected by the Receiver that, in accordance with the Construction Lien Act R.S.O. 1990, Chapter C.30 (the “CLA”), are impressed with a trust for their respective benefit for materials sold to the Company;
- Authorizing the Receiver to make such subsequent distributions to Watford and Pacer as the Receiver, in its sole discretion, determines appropriate from any future amounts, if any, collected by the Receiver that are impressed with a trust pursuant to the CLA;
- Authorizing and directing the Receiver to make an interim distribution to CIBC in Respect of its secured claim with respect to the Property in the amount of $1,000,000; and
- Authorizing the receiver to make such subsequent distributions to CIBC as the Receiver, in its sole discretion, determines appropriate, subject to the Receiver maintaining sufficient reserves to satisfy the Outstanding Disbursements and complete the administration of the Receivership Proceedings.
A motion will be heard on July 3, 2012.
Status of File as at March 26, 2012
On March 23, 2012, the Court issued orders approving the sale of the inventory and equipment as detailed in the First Report of the Receiver.
Status of File as at March 21, 2012
On March 20, 2012, the Receiver prepared its First Report to update the Court with respect to:
- The activities of the Receiver since the Date of the Appointment;
- The Receiver's statement of receipts and disbursements;
- The claims asserted by various parties for the repossession of property in the Company's possession;
- The results of the Receiver's efforts to solicit offers for certain of the Property;
- The sale by the Receiver of the Company's retail and lumber inventory to 4536631 Canada Inc. ("453") and the proposed liquidation of the Company's machinery and equipment by Maynards Industries Ltd., subject to the Court' approval;
- The key terms of the Asset Purchase Agreement ("APA") dated March 19, 2012 between the Receiver and 453 for the sale of the Inventory ("Inventory Sale");
- The terms of the Auction Services Agreement ("ASA") dated March 19, 2012 between the Receiver and Maynards for the sale of the Equipment ("Equipment Sale");
and to seek an order of the Court:
- Approving the Inventory Sale;
- Approving the Equipment Sale;
- Approving the First Report and activities of the Receiver; and
- Temporarily sealing the Offer Summary and unredacted versions of the APA and ASA pending the closing of the transactions contemplated therein.
A motion will be heard on March 23, 2012.
This Web site will be updated as information becomes available.
For more information, please contact: Sara de Verneuil, Telephone: +1 416 941 8383 ext. 14374, Fax: +1 416 814 3219, or via Email.