1721027 Ontario Inc. (o/a Becker Cogeneration Plant)

CCAA Filing

Page last updated: April 11, 2016

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 February 2, 2016, on the application by Integrated Private Debt Fund III L.P., by its General Partner Integrated Private Debt Fund GP Inc. (the “Applicants”) an initial order (the “Initial Order”) was granted  by the Ontario Superior Court of Justice (Commercial List) (the “Court”),  pursuant to the Companies’ Creditors Arrangement Act (“CCAA”), R.S.C.1985, c.C-36 as amended, in respect of 1721027 Ontario Inc. (“1721027” or the “Company”),  which includes, among other things, a stay of proceedings against 1721027, and the appointment of PricewaterhouseCoopers Inc. as monitor of the Company (“PwC” or the “Monitor”). Pursuant to the Initial Order KPMG Inc. was appointed chief restructuring advisor (“KPMG” or the “Restructuring Advisor”) to the Company to exercise control over the Business (as defined in the Initial Order) and will manage, operate, and carry on the Business post the granting of the Initial Order.  Management and the board of directors of Becker resigned on February 2, 2016 upon the appointment of the Monitor.

The Initial Order, among other things:

  1. Approved a stay of proceedings up to and including March 3, 2016;
  2. Granted a first ranking charge, in the amount of $500,000 (the “Administration Charge”), over all of the assets of the Company, as security for fees and disbursements of the Monitor and its counsel, the Company’s counsel, the Restructuring Advisor, and counsel for the Applicants; and
  3. Granted a second ranking charge, the amount of $500,000 (the Restructuring Advisor’s Charge”), over all of the assets of the Company, as security for the indemnity granted to the Restructuring Advisor pursuant to the terms of an engagement letter dated February 1, 2016.

The Initial Order was amended on March 2, 2016 (the “First Amended and Restated Initial Order”), which among other things:

  1. Approved the debtor-in-possession credit facility up to $3,000,000 (the “DIP Facility”) entered into between the Company and Integrated Asset Management Corp. (the “DIP Lender”); and
  2. Granted a third ranking charge, in the amount of $3,300,000 (the “DIP Lending Charge”) over all of the assets of the Company as security for the DIP Facility.

Suppliers of goods and services to the Company post the granting of the Initial Order should see the “Letter to Suppliers” in the Suppliers section of this website.



Status of file as of April 11, 2016

On April 11, 2016, the Court issued an order:

  1. Extending the dates for the key milestones contained in the Becker Sale Process (the “Milestone Dates”) approved by the Court on March 2, 2106; and
  2. Approving the sale process communication protocol (the “Sale Process Communication Protocol”) as detailed in Exhibit “C” to the Affidavit of Todd Ambachtsheer sworn on April 7, 2016.

Status of file as of April 8, 2016

On April 7, 2016, the Applicants filed a motion for an Order:

  1. Extending the dates for the key milestones contained in the Becker Sale Process (the “Milestone Dates”) approved by the Court on March 2, 2106; and
  2. Approving the sale process communication protocol (the “Sale Process Communication Protocol”) as detailed in Exhibit “C” to the Affidavit of Todd Ambachtsheer sworn on April 7, 2016.

On April 8, 2016 the Monitor filed its Second Report to the Court to provide the Court with:

  1. An update on the Becker Sale Process;
  2. The Monitor’s view on the Applicant’s request for an extension of the Milestone Dates; and
  3. The Monitor’s view on the Applicant’s request for approval of the Sale Process Communication Protocol  to ensure the efficient administration of the Becker Sale Process and the Olav Sale Process (as defined in the Second Report).  

A motion will be heard on April 11, 2016.

Status of file as of March 2, 2016

On March 2, 2016, the Court issued an order approving the Becker Sale Process for the purpose of soliciting interest in and opportunities for a sale of the assets and business of the Applicants, details of which are located under the Sale Process tab of this website.

On the same day, the Court issued an order:

  1. Approving the DIP Facility and the DIP Lender’s Charge and amending and restating the Initial Order to reflect the approval of same;
  2. Extending the Stay Period to June 2, 2016; and
  3. Approving the Monitor’s First Report and activities as described therein.

Status of file as of February 26, 2016

On February 25, 2016, the Applicants filed a motion for an Order:

  1. Authorizing the Applicants to enter into a debtor-in-possession credit facility of up to a maximum of $3,000,000 plus interest and fees (the “DIP Facility”) offered by Integrated Asset Management Corp. (the “DIP Lender”) and granting a charge (the “DIP Lender’s Charge”) in favour of the DIP Lender to secure the DIP Facility to a maximum amount of $3,3000,000 in priority to all other charges and encumbrances against the Applicant’s property (except for the Administration Charge and the Restructuring Advisor’s Charge) and issuing an Amended and Restated Initial Order reflecting same;
  2. Extending the stay of proceedings from March 3,2016 to June 2, 2016 (the “Stay Period”);
  3. Approving the First Report of the Monitor (the “First Report”) and the actions of the Monitor as described therein; and
  4. Approving the Becker Sale Process in the form as described in Exhibit “D” of the Ambachtsheer Affidavit in the Motion Record and authorizing the Monitor, with the assistance of the Restructuring Advisor, to conduct the Becker Sale Process.

On February 26, 2016, the Monitor filed its First Report to Court to provide the Court with:

  1. Background information about the Company and the CCAA Proceedings;
  2. An update on the Company’s actual cash receipts and disbursements since the date of the Initial Order;
  3. An update on the Monitor’s activities since the date of the Initial Order;
  4. The cash flow forecast for the period from February 22, 2016 to June 5, 2016 as prepared by the Restructuring Advisor (the “Extended Cash Flow Forecast”) and the Monitor’s views thereon;
  5. An outline of the proposed sales strategy and sale process developed by the Monitor, in conjunction with the Restructuring Advisor, in respect of the Company and its assets (the “Becker Sale Process”);
  6. A summary of the terms of the proposed DIP Term Sheet and the Monitor’s view of the Applicant’s request to approve the DIP Facility and grant the DIP Lender’s Charge (all as defined in the First Report); and
  7. The Monitor’s view on the Applicant’s request for an extension of the Stay Period (as defined in the Initial Order).

The motion will be heard on March 2, 2016.

Status of file as of February 9, 2016

In accordance with section 23 (1)(ii)(b) of the CCAA and the Initial Order, a notice was sent to all creditors owed more than $1,000 on February 9, 2016. A copy of the notice is posted under the Notices section.

Status of File as of February 3, 2016

On February 3, 2016, the Court issued an order declaring that the remaining directors of the Company were deemed to have resigned as of February 2, 2016 and that the Ministry of Government Services (Ontario), Central Production and Verification Services Branch, accept the resignations as of February 2, 2016.


This Web site will be updated as information becomes available.

For more information, please contact: Tammy Muradova, Telephone: +1 416 941 8383 ext 14456, or via Email