Johel Group of Companies

Receivership

Page last updated: June 30, 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.


Status of the file as of June 3, 2016

The Receiver has filed its Receiver's Certificate relating to the completion of the sale of the Core Properties, a copy of which can be found under the Motion Materials - Receivership tab. Further updates will be posted to this website as the Receiver completes the other activities set out below.

Status of the file as of May 10, 2016

At the May 6, 2016 hearing, the Court granted the Orders sought by the Receiver in its Application materials dated April 26, 2016. The Orders have been posted to the Court Orders - Receivership tab.

The Receiver, as set out in the Receiver's Fourth Report to Court, is now proceeding to:

  • Close the sale of the properties, and collect and distribute the net proceeds of such to the relevant secured creditor;
  • Distribute cash to the relevant secured creditor in respect of 505396 B.C. Ltd, Cougar Services Ltd., D.S. Johel Industries Ltd., and JBC Holdings Ltd.;
  • Distribute surplus cash to the unsecured creditors of Johel Investments Ltd., on a pro rata basis; and
  • File a Receiver's Certificate confirming the effective date of the Receiver's discharge.

A further update will be posted to this website once the above activities have taken place and the Receiver's Certificate has been filed.

Status of the file as of April 26, 2016

The Receiver will be making an application to the Court on May 6, 2016 at 9:00 am for an Order:

  • Approving the sale of:
  • 7.7 acres of land including the office and maintenance buildings, located at 8800 North Shore Road, Lake Cowichan, B.C. with PID 009-994-645;
  • 120.6 acres of land, including that of the gravel pit, located at Meade Creek Road and North Shore Road, Lake Cowichan, B.C. with PID 018-831-281; and
  • 11.4 acres of land located off Youbou Road, Lake Cowichan, B.C., a former rail line right-of-way, with PID 009-764-178.
  • Authorizing the Receiver to make a final distribution to certain creditors, as set out in the Receiver's Fourth Report to Court;
  • Approving the interim statement of receipts and disbursements;
  • Approving the activities of the Receiver and the Trustee in respect of certain entities;
  • Approving the fees and disbursements of the Receiver and its legal counsel in respect of certain entities;
  • Discharging the Receiver of certain entities, upon its confirmation of the effective date of discharge, via the filing of a Receiver's Certificate; and
  • Discharging the Trustee of certain entities.

In support of the application, the Receiver's Fourth Report to Court dated April 19, 2016, and the Receiver's Notice of Application dated April 26, 2016, are available under the Receiver's Reports and Motion Materials tabs, respectively.

Status of the file as of April 22, 2015

At the April 22, 2015 hearing, the Court granted an Order approving the sale of land for which 505396 B.C. Ltd. owns an undivided half interest in. The Order has been posted under the Court Orders - Receivership tab.

Status of the file as of April 14, 2014

The Receiver will be making an application to the Court on April 22, 2015 at 9:15 am for an Order approving the sale of land located in Youbou, B.C. for which 505396 B.C. Ltd. owns an undivided half interest in. In support of the application, Affidavit #3 of Richard Pallen and the Receiver's Notice of Application, both dated April 13, 2015 are available under the Motion Materials - Receivership tab.

Status of the file as of December 10, 2014

At the December 10th hearing, the Court granted an Order that:

  • Authorized the distribution and assignment of surplus cash and other amounts to certain secured creditors;
  • Approved the accounts of the Receiver and the Receiver's counsel in respect of certain entities; and
  • Discharged the Receiver and the Trustee in respect of certain entities.

The Order has been posted under the Court Orders - Receivership tab.

Status of the file as of December 2, 2014

The Receiver's Third Report to Court has been filed and can be found under the Receiver's Reports tab.

The Receiver will be making an application to the Court on Wednesday, December 10, 2014 at 9:00 am for an Order:
  • Authorizing the distribution and assignment of surplus cash and other amounts receivable to certain secured creditors;
  • Approving the accounts of the Receiver and the Receiver's legal counsel in respect of certain entities; and
  • Discharging the Receiver and the Trustee in respect of certain entities;
In support of the application, the Receiver's Notice of Application dated November 27, 2014 is available under the Motion Materials - Receivership tab.

Status of the file as of July 28, 2014

On April 28, 2014, Cougar Crushing & Screening Ltd. ("CCS") was assigned into Bankruptcy and Hayes, McNeill & Partners Ltd. was appointed as Trustee in Bankruptcy. The Trustee is now working with the creditors of CCS. A surplus will be available to the unsecured creditors for distribution in due course.

Subsequently, on May 1, 2014, Cougar Services Ltd., Cowichan Lake Concrete Ltd., Cowichan Valley Concrete Ltd., Island Excavating Ltd., Johel Brothers Construction Corporation, and Johel Brothers Contracting Ltd. were assigned into Bankruptcy and PricewaterhouseCoopers Inc. was appointed as Trustee in Bankruptcy. It is expected that a surplus will not be available to the unsecured creditors of these estates.

Liquidation efforts continue by the Receiver. Most recently, the court approved the sale of industrial land located in Cowichan Lake, B.C and the Receiver has now filed the Receiver's Certificate. All applicable materials have been posted to this website under the Motion Materials - Receivership and Court Orders - Receivership tabs.

Status of the file as of April 17, 2014

At the April 17th hearing, the Court granted two Orders that approved all that was sought by the Receiver in its Application dated April 14, 2014. The Orders have been posted under the Court Orders - Receivership tab.

Status of the file as of April 15, 2014

The Receiver's Second Report to Court and the Supplemental Report to the Second Report have been filed and can be found under the Receiver's Reports tab.

The Receiver will be making an application to the Court on Thursday, April 17, 2014 at 9:45 am for an Order:

  • approving the sale of Cowichan Lake Concrete Ltd.'s interest in Independent Concrete Ltd.;
  • approving the proposed allocation of the DIP Lender's Charge, the Administrative Charge, and the Replacement Charge (the "CCAA Priority Claims");
  • approving the proposed distribution of funds in settlement of the CCAA Priority Claims and other priority and secured creditor claims;
  • enabling the Receiver to assign certain companies into Bankruptcy;
  • approving the accounts of the Monitor and its counsel;
  • discharging the Monitor; and
  • terminating the CCAA proceedings.

In support of the application, Affidavit # 1 of Arleigh McKerlich and the Receiver's Notice of Application, both dated April 14, 2014 are available under the Motion Materials - Receivership tab.

Status of the file as of January 9, 2014

Following the Receiver's application on December 20, 2013, the Court authorized the proposed Auction Agreement. A copy of this Court Order is available under the Court Orders - Receivership tab.

The auction will take place on Wednesday, February 19th at 9:00 A.M. at 8800 North Shore Road in Lake Cowichan. Interested parties can visit www.maynards.com/auctions/industrial/auction-details/johel-group-of-companies-2 for further information.

The Receiver is accepting offers for the core business assets. The Invitation for Offers is available under the "Sales Process - Receivership" tab. Interested parties in any of the parcels identified should forward their offers to the Receiver.

Status of the file as of December 18, 2013

All offers received to date from our Invitation for Offers process were rejected and deposits returned. Parties interested in any of the parcels identified in the Invitation for Offers should forward their offers to the Receiver.

Status of the file as of November 20, 2013

The Receiver is inviting offers for the core business assets of the Johel Group. The deadline for sealed offers is December 17, 2013 at 09:00 PST. A PDF version of the Invitation for Offers is available under the "Sales Process - Receivership" tab to the left.

Status of the file as of November 4, 2013

The Receivership Order for the appointment of Receiver by Canadian Western Bank is now available under the Court Orders - Receivership tab. Copies of other Receivership Orders will be posted on this website when available.

Status of the file as of October 29, 2013

At the October 29th hearing, various entities within the Johel Group were placed into receivership. The Monitor was appointed Receiver or Receiver-Manager of the entities in receivership. Copies of the Court Orders will be posted to this website when available. A mailing to all known creditors will take place in the next 10 days and those materials will also be posted to this website when available.

Status of the file as of October 15, 2013

Following the application by Johel Group, on October 15, 2013 the Court approved the proposed distribution to secured creditors and extended the Stay of Proceedings to October 29, 2013. The Court refused the Company's application for an extension of the stay to November 30, 2013. A copy of this Court Order is available under Court Orders tab.

The Monitors Supplemental Report to the Fourth Report to Court is now available under Monitors Reports tab.

Status of the file as of October 10, 2013

The Company is presently considering its options for the relief it intends to seek from the Court at the October 15, 2013 hearing. Affidavit #7 of Davinder Johel and the Company's Notice of Application, both dated October 9, 2013 have been filed and are available under the Motion Materials tab. The Company, currently, seeks an Order extending the stay of proceedings to November 30, 2013, allowing the distribution of proceeds from the equipment sales, and approving the sale of certain land should the purchase and sale agreement become final.

Based on the foregoing, the Company may file further materials prior to the hearing. In addition, the Monitor will file a supplemental report clarifying the relief sought by the Company. These materials will be posted to this website as they become available.

Status of the file as of September 20, 2013

The Monitor's Fourth Report to Court has been filed and is now available under the Monitor's Report's tab.

Status of the file as of July 30, 2013

At the July 30th hearing, the Court granted an Order that:

  • extended the stay of proceedings to September 30, 2013;
  • reduced the authorized DIP loan to $725,000; and
  • directed the Monitor to file its Fourth Report to Court on or before September 20, 2013.

The Order has been posted under the Court Orders tab.

Status of the file as of July 26, 2013

The Company will be making an application to the Court on Tuesday, July 30, 2013 at 10:00 am for an Order extending the stay of proceedings to September 30, 2013 and reducing the authorized amount of the DIP loan to $725,000. In support of the July 30, 2013 application, Affidavit #6 of Davinder Johel and the Company's Notice of Application, both dated July 25, 2013 are available under the Motion Materials tab.

Based on the foregoing, the Monitor is now preparing a supplemental report that will be posted to this website when available.

Status of the file as of July 25, 2013

The Monitor's Third Report to Court has been filed and is now available under the Monitor's Reports tab. The Petitioner is presently considering its options for the relief it intends to seek from the Court at the July 30, 2013 hearing. The Monitor will, prior to the hearing, prepare a supplemental report clarifying the relief sought by the Company. Further materials will be posted to this website as they become available.

Status of the file as of July 16, 2013

At the July 16th hearing, the Court ordered that the Initial Order be amended to allow, following the completion of the sale of the Purchased Assets, the Petitioner or their counsel to file financing change statements in the Personal Property Registry. At the hearing, the Order pronounced June 14, 2013 was also amended to reflect that the personal net worth declarations of Davinder and Salimdar Johel are only to be provided to a secured creditor with a claim in excess of $100,000, upon request.

Status of the file as of July 12, 2013

The Company will be making an application to the Court on Tuesday, July 16, 2013 at 9:45 am for an Order amending the Order pronounced June 14, 2013. In support of the July 16, 2013 application, Affidavit #4 of Davinder Johel and the Company's Notice of Application, both dated July 10, 2013 are available under the Motion Materials tab

Status of the file as of June 14, 2013

On June 14, 2013, the Supreme Court of British Columbia granted an Order that, among other things:

  • extended the Stay of Proceedings to July 31, 2013; and
  • increased the limit for Debtor in Possession (DIP) financing from $400,000 to $925,000.

You will find the following documents posted under their respective tabs:

Motion Materials

  • Affidavit #2 - Davinder Johel
  • Notice of Application - VFS Canada Inc.
  • Affidavit #1 - Christa Herzog (VFS)
  • Affidavit #1 - Betty Torsky

Court Orders

  • Order Made After Application - 2013-06-14

Monitor's Reports

  • Monitor's Second Report to Court - 2013-06-11

Status of the file as of May 21, 2013

On May 21, 2013, the Johel Group ("the Company") applied for, and received, an initial order pursuant to the CCAA from the Supreme Court of British Columbia which includes, among other points, a stay of proceedings against the Company. A hearing for the extension of the stay period is scheduled for Friday, June 14, 2013 at 10:00 am.


This Web site will be updated as information becomes available.