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.
|By a Notice of Assignment dated 14 January 2005, 11422 Newfoundland Ltd. became the assignee of the security interest held by CIBC, which is believed to be the security interest that is in first priority to all other claims.
On July 22, 2005, Mr. Justice Hall rendered his decision in sub-files 7:27 and 7:51. These sub-files were the proceeds applications of the Royal Bank of Canada ("RBC") and Cedarapids Inc. ("Cedarapids"). Justice Hall referenced the decision of the Court of Appeal (Hickman Equipment (1985) Ltd. Re  N.J. No. 286) which made certain conclusions concerning the force and effect of security held by CIBC. Specifically, the Court of Appeal concluded, among other things, that:
Justice Hall concluded in his decision (sub-file 9:11) that the security interest held by CIBC did not rank subordinate in priority to the security interest held by RBC or by Cedarapids. He held:
I conclude, therefore, that the RBC Security and the Cedarapids Debentures are subsequent in priority to both the debenture and Supplemental Debentures on the one hand and the GSA of CIBC on the other.A copy of Justice Hall's decision is available below.
|On the basis of the Notice of Assignment described above, this decision now applies to 11422 Newfoundland Ltd.
The Statement of Claim of the Receiver and Trustee against Deloitte & Touche LLP and Deloitte & Touche Inc. (sub-file 7:59), issued December 24th, 2003 has been the subject of two separate applications for an extension of the time for service (since it was ordered that service would not be affected without leave of the Court). In the second such application (sub-file 7:65), which was heard before Mr. Justice Hall on June 22nd 2005, counsel for 11422 Newfoundland Ltd was heard and advised the court of its interest in the action given its priority position. Justice Hall ordered that the time to serve the Statement of Claim be extended to September 22nd, 2005. It is anticipated that carriage of the action against Deloitte & Touche will be assumed by 11422 Newfoundland Ltd.
|Please consult the Receiver's 22nd Report for the status of court cases as of July 31, 2005.|
|The Receiver's Report to Court for the three (3) months ended July 31, 2005 is posted under the Receiver's Reports section.|
|The Report of the Receiver and Trustee and Receiver's Counsel relating to the auditor's working paper files has been filed with the court and is subject to confidentiality restrictions. Creditors seeking a copy should contact the Receiver at (709) 722-3883 for a copy of the confidentiality agreement.|
|The Receiver and Trustee filed a Statement of Claim against the auditor which is shown below in sub-file 7:59.|
|A significant number of court hearings were adjourned as a result of appeals filed relating to recent court decisions issued including decisions relating to sub files 7:28 (a) and 7:34. The appeal decisions were recently filed.|
|On May 14, 2002, the Court accepted the Receiver's Report and approved a Receivership Plan, Claims Plan, Investigation Plan and Cost Allocation Plan. The Court Order and final court-approved Plans are posted below on this Web site. Included in the Realization Plan is authorization to conduct an auction of heavy equipment.|
|Pursuant to an application by Wells Fargo and Hickman, Hickman was placed into receivership by a Receivership Order on March 13, 2002 and PricewaterhouseCoopers Inc. was appointed by the Court as Receiver. The Receivership Order is presented below.|
|Final Determinations, revised December 11, 2002|
|The Receiver filed an application and supporting affidavits for court approval of all Final Determinations issued in which security was determined to be valid. These are posted below under Court Orders and Related Documents.
|Letter to Secured Creditors Re. Final Determination, dated September 19, 2002|
|Outline for Final Determination of Validity of Security|
|Memorandum To Claimants Concerning The Claims Process|
|Draft Final Determinations, revised January 17, 2003|
|Pre-PPSA Registrations from the Registry of Bills of Sale|