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


CCAA Filing

Page last updated: April 10, 2017

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 10, 2017

On March 8, 2017, the Monitor filed its Discharge Certificate with the Court. The Monitor and the Co-Restructuring Advisors are now discharged from their duties in the CCAA proceedings. A copy of the Discharge Certificate is posted on the Orders page of this website.

Status of file as of November 1, 2016

On October 31, 2016 the Court issued an Order, which among other things

  1. Approved the Monitor’s Sixth Report and the Monitor’s actions to date;
  2. Approved and the fees of the Monitor and its counsel as set out in the Sixth Report and the Fee Affidavits;
  3. Approved the termination of the CCAA proceeding and discharge of the Monitor and the Co-Restructuring Advisors upon the Monitor filing a Discharge Certificate with the Court; and
  4. Approved the extension to the Stay Period up to and until the filing of the Discharge Certificate.

Status of file as of October 26, 2016

On October 26, 2016, the Monitor filed its sixth report to the Court (the “Sixth Report”), to provide the Court with information with respect to:

  1. the closing of the Transaction;
  2. an update on the Company’s actual cash receipts and disbursements since the Fifth Report;
  3. an update on the Monitor’s activities since the date of the Fifth Report;
  4. the fees in respect of the Monitor and its legal counsel in the CCAA proceedings; and
  5. the Monitor’s views on the Applicant’s request for an order terminating the CCAA proceedings, discharging the Monitor and the C0-Restructuring Advisors upon the Monitor filing a Discharge Certificate with the Court, and extending the Stay Period up to and until the filing of the Discharge Certificate.

The Applicant’s motion will be heard on October 31, 2016

Status of file as of October 25, 2016

On October 25, 2016, the Applicant filed a Motion with the Court for an order to:

  1. Extend the Stay Period to the filing date of the Discharge Certificate (as defined hereafter);
  2. Approve the fees and disbursements of the Monitor and its legal counsel;
  3. Discharge KPMG and Benson Consultant in their capacities as Co-Chief Restructuring Advisors effective upon filing a discharge certificate with the Court (the “Discharge Certificate”);
  4. Discharge PwC in its capacity as Monitor effective upon the filing of the Discharge Certificate;
  5. Approve the Monitor’s Sixth Report (the “Sixth Report”) to be filed with the Court and approve the Monitor’s actions as descried in the Sixth Report; and
  6. Terminate the CCAA proceedings effective upon filing the Discharge Certificate.

The motion will be heard on October 31, 2016.

Status of file as of September 30, 2016

On September 30, 2016 the Transaction with Hornepayne Power Inc. closed.

Status of file as of September 29, 2016

At the motion heard on September 9, 2016, a chambers attendance was scheduled for September 16, 2016 to address the scheduling of a motion relating to the assignment of the Electricity License, if the parties could not resolve the issue. The matter has been resolved and therefore the September 16, 2016 appearance did not proceed as scheduled.

Status of file as of September 16, 2016

On September 16, 2016, the Court issued

  1. an order (the “Order”), which among other things:
    1. Authorized and empowered the Company to borrow under the DIP Facility up to $3,700,000.00 and authorized the increase in the DIP Lending Charge from $3,000,000.00 to $4,000,000.00;
    2. Extended the Stay Period to October 31, 2016; and
    3. Approved the Fifth Report and the Monitor’s actions as described in the Fifth Report;
  2. and an order (the “Approval and Vesting Order”), which among other things,
    1. Approved the Transaction,
    2. Approved and authorized the execution of the APA; and
    3. Approved the vesting of the Company’s right, title, benefit and interest in and to the Purchased Assets described in the APA, in the Purchaser, upon the delivery of a Monitor’s certificate to the Purchaser (the “Monitor’s Certificate”, attached as Schedule A to the Approval and Vesting Order).

Also, on September 16, 2016, the hearing of the Supplemental Motion regarding the assignment of the Electricity License, that was scheduled for September 16, 2016, was adjourned to September 23, 2016.

Status of file as of September 15, 2016

On September 15, 2016, the Applicant filed a Supplemental Motion with the Court for, among other things, the assigning of Becker’s Electricity Generation License EG2007-0939 (the “License”) to the Purchaser. 

The Motion will be heard on September 16, 2016.

Status of file as of September 14, 2016

On September 14, 2016, the Monitor filed its Fifth Report to the Court (the “Fifth Report”) to provide the Court with information with respect to:

  1. An update on the Becker Sale Process, as amended;
  2. An overview of the APA between the Purchaser and Becker with respect to the Transaction;
  3. The Monitor’s view of the Becker Sale Process and the Transaction and the Applicant’s request for the Approval and Vesting Order approving the Transaction and vesting in the Purchaser, the Company’s right, title, benefit and interest in and to the Purchased Assets (as defined in the APA), and to seal the Bid Summary (as defined in the Fifth Report);
  4. An independent opinion on the validity and enforceability of security (“Security Opinion”) held by the Applicant and Integrated Private Debt Fund IV L.P. (“IPD IV”);
  5. The status of claims ranking in priority to secured creditors (“Priority Claims”) including Canada Revenue Agency deemed trust claims in respect of source deductions and Harmonized Sales Tax (“HST”) that are outstanding as at the Closing Date (as defined in the APA) and employee claims in respect of unpaid wages and vacation pay (“Employee Claims”);
  6. An update on the Company’s actual cash receipts and disbursements since last reported in the Fourth Report;
  7. The September Cash Flow Forecast (as defined in the Fifth Report);
  8. The Monitor’s view on the Applicant’s request for an increase in the DIP Facility and the DIP Lending Charge;
  9. The Monitor’s view on the Applicant’s request for an extension of the Stay Period to October 31, 2016; and
  10. An update on the Monitor’s activities since the date of the Fourth Report.

Status of file as of September 9, 2016

On September 9, 2016, the Applicant filed a Motion with the Court for

  1. an order (the “Order”) to
    1. Authorize the increase in the borrowing under the DIP Facility from $3,000,000.00 to $3,700,000.00 and to authorize the increase in the DIP Lending Charge from $3,000,000.00 to $4,000,000.00;
    2. Extend the Stay Period to October 31, 2016; and
    3. Approve the Monitor’s Fifth Report (the “Fifth Report”) to be filed with the Court and approve the Monitor’s actions as described in the Fifth Report;
  2. and for an order (the “Approval and Vesting Order”) to approve and authorize the transaction (the “Transaction”) contemplated by the Asset Purchase Agreement between the Company and Hornepayne Power Inc. (the “Purchaser”), dated September 9, 2016 (the “APA”) and vesting all of the property, assets and undertakings of the Company in the Purchaser.

The Motion will be heard on September 16, 2016.

Status of file as of August 16, 2016

On August 16, 2016 the Court issued an Order to appoint RC Benson Consulting Inc. as the Co-Restructuring Advisor in the restructuring proceeding of the Company.

Status of file as of August 12, 2016

On August 12, 2016 the Applicant filed a Motion for an Order to appoint RC Benson Consulting Inc. as the Co-Restructuring Advisor (the “Co-Restructuring Advisor”) in the restructuring proceeding of the Company.

The Motion will be heard on August 16, 2016.

Status of file as of July 27, 2016

On July 27, 2016, the Court issued an Order:

  1. Extending the Stay Period to September 16, 2016;
  2. Increasing the Administration Charge from $500,000.00 to $800,000.00;
  3. Approving the Third Report and the Fourth Report of the Monitor and the actions of the Monitor as described therein; and
  4. Amending the Becker Sale Process to (i) allow the Applicant and the DIP Lender to submit a bid, or credit bid, or any combination of, for consideration by the Restructuring Advisor, in consultation with the Monitor; and (ii) allow the Restructuring Advisor, in consultation with the Monitor, to consider any bids received from interested parties from and after the date of this order, in each case, any successful bid being subject to approval by the Court.

Status of file as of July 25, 2016

On July 25, 2016 the Applicants filed a Supplementary Motion Record to amend a Notice of Motion to be heard on July 27, 2016, to include, among other things, an order amending the Becker Sale Process to:

  1. Allow the Applicant and the DIP Lender to submit a bid, or credit bid, or any combination of, for consideration by the Restructuring Advisor, in consultation with the Monitor; and
  2. Allow the Restructuring Advisor, in consultation with the Monitor, to consider any bids received from interested parties from and after the date of this order, in each case, any successful bid being subject to approval by the Court.

The motion will be heard on July 27, 2016.

On July 25, 2016 the Monitor filed its Fourth Report to the Court (the “Fourth Report”) to provide the Court with information with respect to:

  1. An update on the Becker Sale Process;
  2. A request amending the Becker Sale Process to allow: (i) the Applicant and the DIP Lender to submit a bid, or credit bid, or any combination thereof for consideration by the Restructuring Advisor, in consultation with the Monitor; and (ii) the Restructuring Advisor, in consultation with the Monitor, to consider any bids received from interested parties from and after the date of the order amending the Becker Sale Process, subject to approval by the Court;
  3. An update on the Company’s actual cash receipts and disbursements since last reported in the Third Report;
  4. An update on the Monitor’s activities since the date of the Third Report;
  5. The requested increase to the Administration Charge from $500,000 to $800,000; and
  6. The Monitor’s view on the Applicant’s request for an extension of the Stay Period to September 16, 2016.

Status of file as of July 22, 2016

On July 21, 2016, the Applicants filed a motion for an Order:

  1. Extending the Stay Period to September 16, 2016;
  2. Increasing the Administration Charge from $500,000.00 to $800,000.00;
  3. Approving the Monitor’s Third Report to the Court, dated May 31, 2016, the Monitor’s Fourth Report to the Court (the “Fourth Report”), to be filed; and
  4. Approving the Monitor’s activities to date.

The motion will be heard on July 27, 2016.

Status of file as of July 6, 2016

On June 27, 2016, the Monitor issued a notice to Phase 2 Qualified Bidders in the Becker Sale Process to advise that the Binding APA Deadline was extended from June 30, 2016 to July 14, 2016. 

Please refer to the “Sale Process” page for the updated deadlines of the milestones on the Sale Process.

Status of file as of June 2, 2016

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

  1. Approving the amendment to the defined term “OHT Process Parties” contained in the Sale Process Communication Protocol, to include the Crown;
  2. Extending the Stay Period  to July 29, 2016; and
  3. Approving the Monitor’s Second Report and actions of the Monitor as described therein.

Status of file as of June 1, 2016

On May 31, 2016 the Monitor filed its Third Report (the “Third Report”) to the Court to provide the Court with:

  1. An update on the Becker Sale Process, including the non-binding bids received by the Non-Binding APA Deadline (as defined in the Third Report);
  2.  Information on a proposed amendment to the Sale Process Communication Protocol;
  3. An update on the Company’s actual cash receipts and disbursements since last reported in the First Report;
  4. The cash flow forecast for the period from May 23 to July 31, 2016 as prepared by Becker (the “May Cash Flow Forecast”) and the Monitor’s views thereon;
  5. An update on the Monitor’s activities since the date of the First Report; and
  6. The Monitor’s view on the Applicant’s request for an extension of the Stay Period and an amendment to the Sale Process Communication Protocol.

Status of file as of May 30, 2016

On May 27, 2016, the Applicants filed a motion for an Order:

  1. Amending the defined term “OHT Process Parties” contained in the Sale Process Communication Protocol, to include “Her Majesty the Queen in Right of Ontario as represented by the Minister of Finance (“MOF”) and Ministry of Natural Resources and Forestry (formerly Minister of Northern Development, Mines and Forestry) (“MNRF” and collectively with MOF, the “Crown”)”;
  2. Extending the Stay Period  to July 29, 2016; and
  3. Approving the Monitor’s Second Report dated April 11, 2016, and the Third Report of the Monitor, to be filed (the “Third Report”), and approving the actions of the Monitor as described therein.

The motion will be heard on June 2, 2016.

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

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Tammy Muradova

Tel: +1 416 941 8383 ext 14456
Email