Canada Drives Entities

CCAA

Page last updated: November 24, 2023

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 file as at October 27, 2023

As of Friday October 27, 2023 (the “Distribution Date”), the Monitor has sent all distributions to creditors with Accepted Claims, in the manner set out under Article 7 of the Plan.

Unless otherwise instructed, distributions were made via cheque, and creditors should expect to receive these in the post within 30-60 days of the Distribution Date. Creditors who do not receive their cheque after this timeframe should contact the Monitor in writing at ca_canada-drives@pwc.com, and provide a current mailing address (an “Undelivered Distribution Notification”).

As per Article 7.5 of the Plan, distributions must be cashed within 6 months of October 27, 2023. After this time, the claim of any creditor with respect to such undelivered and/or unclaimed distributions will be discharged and forever barred. 

Status of file as at October 16, 2023

On Friday October 13, 2023, the Monitor’s Certificate was filed with the Court and hereby confirms that the Plan has been fully implemented in accordance with the terms thereof. 

A copy of the certificate can be found under the Court Orders on the Monitor’s website.

Status of file as at October 13, 2023

On Friday October 13, 2023 the Canada Drives Entities confirmed to the Monitor that the conditions of Plan Implementation, as set out in Section 8.2 of the Plan, had been satisfied. Following this, the Monitor issued the Monitor’s Certificate on the same day, and will file it with the Court in due course.

As a result, the Monitor hereby confirms that the Plan has been fully implemented in accordance with the terms thereof, with an Effective Date of October 13, 2023.

The Monitor will now send the required distributions to Affected Creditors in respect of their Accepted Claims by October 27, 2023 (as per sections 7.1 of the Plan).

If any Affected Creditors’ distributions are returned as undeliverable or are not cashed, no further action will be taken unless the creditor notifies the Petitioners and the Monitor in writing with an updated current address by April 26, 2024 (as per section 7.5 of the Plan).

Status of file as at September 28, 2023

On Thursday September 28, 2023, the Court granted the extension of stay (the “Stay Period”) until October 15, 2023.

A copy of the order can be found under the Court Orders tab.

Status of file as at September 26, 2023

On Tuesday September 26, 2023, the Petitioners counsel filed and served a Notice of Application ("NOA") seeking the extension of stay (the 'Stay Period') until October 15, 2023. 

Affidavit #9 of Cody Green, providing a brief update on:

• The activities of the Petitioners since the last Court hearing on September 13, 2023, and
• The proposed extension to the Stay Period.

A copy of the Affidavit #9 and NOA can be found under the Motion Materials tab.

On Wednesday September 27, 2023, the Monitor filed and served its 8th report (the “Eighth Report”), which contains an update on the Petitioners' cash flow and recommendation on the Petitioners' request to extend the Stay of Proceedings to October 15, 2023.

The Eighth Report can be found under the Monitor’s Reports tab.

Status of file as at September 13, 2023

On Wednesday September 13, 2023,  the Court granted the following orders:

• The Plan Sanction Order; and
  
• The CCAA Termination Order.

Both orders can be found under the Court Orders tab. 

Status of file as at September 12, 2023

On Tuesday September 12, 2023, the Company’s counsel served and filed an update to the Plan Sanction Order filed on Friday September 8, 2023, which included unsubstantial revisions. A blackline copy can be found under the Motion Materials tab.

Status of file as at September 11, 2023

On Monday September 11, 2023 at 10:00 am Vancouver Time, a meeting of the Affected Creditors was convened to vote on the Plan (the “Creditors’ Meeting”). The Monitor called for a vote on the Plan during the meeting, and tallied them with proxy votes received prior to the Creditors’ Meeting. After the final tabulation, the Monitor confirmed that the Plan has been approved by the Required Majority.

Also on Monday September 11, 2023 - the Monitor has served its 7th report (the “Seventh Report”). The Seventh Report can be found under the Monitor’s Reports tab and it covers the following:

• Activities of the Petitioners and the Monitor since the Sixth Report;
• Update on the Claims Process;
• Results and Minutes of the Creditors Meeting; and
• Sanction Hearing.

The Monitor notes that the Petitioners filed an update to the Plan, attached as Schedule “B” to the draft Sanction Order filed on Friday September 8, 2023, which included unsubstantial revisions. A blackline was circulated to the Service List and a copy can be found under the Motion Materials tab.

Status of file as at September 8, 2023

On Friday September 8, 2023, the Company’s counsel filed and served a Notice of Application (“NOA”) seeking:

• A Plan Sanction Order; and
• A Termination and Discharge Order.

The Company’s counsel also served and filed Affidavit #8 of Cody Green, providing a brief update on:

• The activities of the Petitioners since the last Court hearing on August 14, 2023,
• An overview of the upcoming Creditor Meeting at 10:00 am (Vancouver Time) on September 11, 2023; and
• The proposed Plan Sanction Order and the Termination and Discharge Order.

A copy of the Affidavit #8 and NOA can be found under the Motion Materials tab.

Status of file as at August 15, 2023

Summary of the Plan A high level summary of the distributions to creditors as set out under the Plan are as follows:

• General Unsecured Creditors will receive $0.085 on the dollar for their Accepted Claim;
• All General Unsecured Creditors with an Accepted Claim of $400 or less will be paid out in full; and
• Employees will receive a WEPP equivalent distribution as follows:
   - Employees with a claim equal to or less than the WEPPA equivalent will be paid out in full;
   - Employees with a claim greater than the maximum WEPPA equivalent will be paid out the WEPPA entitlement plus $0.085 on the dollar of the remaining balance of their claim.

General Unsecured Creditors with Accepted Claims which are greater than $400, excluding Employee Claims, may make an election to receive $400 in respect of their claim (the “Distribution Election Notice”) which must be filed with the Monitor by September 7, 2023. Absent an election being made, General Unsecured Creditors will receive $0.085 on the dollar of their Accepted Claims.

The Monitor has reviewed the Plan and recommends that the creditors vote in favour of the Plan. Absent approval of the Plan, the Petitioners will become bankrupt and the returns to creditors would be significantly lower.

Details of the Plan and the Monitor’s analysis are contained in the Monitor’s Sixth report which is posted in the Monitor’s Report tab of this website.

Status of file as at August 14, 2023

On Monday August 14, 2023, the Court granted the following orders:

• The Plan of Compromise and Arrangement (the “Plan”);
• The Creditors’ Meeting Order (the “Meeting Order”). and
• The extension of stay (the “Stay Period”) until October 1, 2023.

A copy of each of the orders can be found on the website. The Meeting Order authorizes the Petitioners to convene a meeting with its creditors (the Meeting”) to vote on the Plan. The Meeting is scheduled for 10:00am Vancouver Time on September 11, 2023. The Monitor will chair the Meeting which will determine whether or not the Plan is approved.

To vote on the Plan, creditors must either;

1. attend the Meeting and submit a vote at the meeting; or
2. complete and submit a Proxy form to the Monitor by 5:00pm Vancouver Time on September 7, 2023.

The Meeting will be held virtually. Creditors must request to attend the meeting, by sending a request to the Monitor by September 7, 2023 at 5:00pm Vancouver Time. The Monitor will provide a link to the video call for the Meeting no later than September 8, 2023 at 5:00pm Vancouver Time.

The Plan will be approved if 50% +1 in number of the Affected Creditors voting, representing at least 2⁄3 in value of the Affected Creditor claims, vote in favour of the Plan.

A high level summary of the Plan will be included in the next status update. Details of the Plan and the Monitor’s analysis are contained in the Monitor’s Sixth report which is posted in the Monitor’s Report tab of this website.

Status of file as at August 10, 2023

On Thursday August 10, 2023, Company’s counsel filed the notice of application in preparation for a Court hearing scheduled for Monday August 14, 2023, seeking for the following:

• The proposed Plan of Compromise and Arrangement (the “Plan”);
• The proposed Creditors’ Meeting Order (the “Meeting Order”). and
• The extension of stay (the “Stay Period”) until October 1, 2023.

In addition, the Monitor served the sixth report (the “Sixth Report”) which includes the following:

• Activities update on the Petitioners and the Monitor since the Fifth Report;
• Cash flow from July 17, 2023 to July 30, 2023;
• Cash flow projections to October 1, 2023
• Brief update on the Claim Process since the Fifth Report;
• Extension to the Stay of Proceedings; and
• The Monitor’s conclusions.

A copy of the notice of application can be found under the Motion Materials tab. The Monitor notes that the notice of application filed on August 10, 2023 differs from the unfiled application that was served on July 25, 2023. A blackline highlighting the changes between the two can also be found under Motion Materials.

The Sixth Report can be found under the Monitor's Reports tab. 

Status of file as at July 28, 2023

On Friday July 28, 2023, the Court granted the Stay Extension Order to extend the stay of proceedings (the “Stay Period”) until and including August 27, 2023.

A copy of the court order can be found under the Court Orders tab. 

Status of file as at July 27, 2023

On Thursday July 27, 2023, the Monitor served and filed the fifth report to the Court (the “Fifth Report”) which can be found under the Monitor’s Report tab above. The Fifth Report includes the following:

• An update on the activities of the Petitioners and the Monitor since the Fourth Report;
• Cash flows from June 12, 2023 to July 16, 2023;
• Further update on the Claims Process;
• Details of the Plan;
• The Monitor’s comments and recommendations on the Plan;
• Details of the Meeting Order;
• Extension to the Stay of Proceedings; and
• The Monitor’s conclusions.

The unfiled Notice of Application re Meetings and Process Order which includes drafts of the Plan and the Meeting Order on July 25, 2023 and can be found under the Motion Material tab above.

Status of file as at July 26, 2023

On Tuesday July 25, 2023, the Company’s counsel served unfilled Affidavit #7 of Cody Green, providing a brief update on:

• The activities of the Petitioners since the last Court hearing on June 28, 2023,
• An overview of the proposed Plan of Compromise and Arrangement (the “Plan”) and the proposed Creditors’ Meeting Order (the “Meeting Order”).

Company’s counsel also served a Notice of Application (“NOA”) seeking:

• An extension to the Stay of Proceedings, to Aug 27, 2023; and
• An order in the form of the Plan and Meeting (Schedule B of the NOA).

On Wednesday July 26, 2023 The Company’s counsel filled Affidavit #7 of Cody Green and a Notice of Application regarding a stay extension to August 27, 2023, seeking a stay extension in general chambers for Friday July 28, 2023.

The Monitor will be serving its fifth report to court (the “Fifth Report”) as soon as practicable, which will cover the following:

• An update on the activities of the Petitioners and the Monitor since the Fourth Report;
• Cash flows from June 12, 2023 to July 16, 2023;
• Further update on the Claims Process;
• Details of the Plan;
• The Monitor’s comments and recommendations on the Plan;
• Details of the Meeting Order;
• Extension to the Stay of Proceedings; and
• The Monitor’s conclusions

Status of file as at June 29, 2023

On Wednesday June 28, 2023, the Court granted the Stay Extension Order to extend the stay of proceedings (the “Stay Period”) until and including July 31, 2023.

A copy of the court order can be found under the Court Orders Tab. Status of file as at June 29, 2023

On Wednesday June 28, 2023, the Court granted the Stay Extension Order to extend the stay of proceedings (the “Stay Period”) until and including July 31, 2023. 

A copy of the court order can be found under the Court Orders Tab.

Status of file as at June 26, 2023

On Friday June 23, 2023, the Monitor posted its Fourth Report to the Court (which can be found under the Monitor’s Reports tab) which inter alia provides details on the following:

• Activities of the Petitioners and the Monitor since the Third Report;
• Cash Flow from April 24, 2023 to June 11, 2023;
• Cash Flow Projections to August 27, 2023;
• Update on the Claims Process;
• Canada Drives Entities Restructuring;
• Extension of the Stay of Proceedings; and
• The Monitor’s Conclusion

Status of file as at June 22, 2023

A Court hearing is scheduled for Wednesday June 28, 2023.

At the hearing, the Petitioners are seeking the Court’s approval for the extension of the Stay of Proceedings until and including July 31, 2023.

On Thursday 22, 2023, the Petitioners have filed the following materials, which can be found under the Motion Materials tab:

• Notice of Application re: Extension to the Stay of Proceedings; and
• Affidavit #6 of Cody Green.

Status of file as at May 8, 2023

On Monday 8 On Monday May 8, 2023, the Court granted two Orders:

• The Claims Process Order; and
• Stay Extension Order.

Copies of both court orders can be found under the Court Orders Tab. A brief summary is below:

Claims Process Order

In accordance with the Claims Process Order, the Petitioner, with assistance of the Monitor will be implementing the claims process. Copies of all relevant claims process documents have been posted to the Claims Process tab. Please refer to the Claims Process Instruction Letter in the first instance.

Pursuant to the Claims Process Order, the Monitor will send a claims notice (the “Claims Notice”) to each known claimant of the Petitioners as follows:

• Negative Claims Notices will be sent to claimants who the Petitioners are aware of and have sufficient information to assess the claim. Negative Claims Notices include the value of each claim as per the Petitioners’ records. If a claimant agrees with its claim as set out in the Claims Notice, no further action is required.
• General Claims Notices will be sent to claimants who the Petitioners are aware of but a valuation of the claim cannot be made. Claimants must complete and submit a Proof of Claim form to the Monitor to register their claim against the Petitioners by the Claims Bar Date or the Restructuring Claims Bar Date (see below).

Any claimant that: (i) disputes the claim set forth in the Claims Notice; (ii) wishes to assert a claim against any director or officer of the Petitioner; (iii) wishes to assert a restructuring claim; or (iv) does not receive a Claims Notice but wishes to assert a claim against the Petitioner or any director or officer, must submit a proof of claim with the Monitor in accordance with the terms of the Claims Process Order.

The Claims Bar Date is 4:00PM Vancouver time on May 29, 2023.

The Restructuring Claims Bar Date is the later of the Claims Bar Date and 15 days calendar days of date included in the relevant Notice of Disclaimer.

Stay Extension Order

The Stay Extension Order granted the following:

• An extension of the stay of proceedings (the “Stay Period”) until and including June 29, 2023; and
• Approved an increase in the maximum aggregate amount of key supplier payments (“Pre-Filing Payment”) provided for in the Amended and Restated Initial Order (“ARIO”) for $150,000, for a total of up to $1,050,000.

The relevant materials can be found under the motion materials tab on this website. The Monitor has also set out its comments on the above in its Third Report, which can be found under the Monitor’s Report tab.

Status of file as at May 4, 2023

On Thursday May 4, 2023 the following application materials were filed with the Court:

• Affidavit #3 of Stephen Robert Chauvette
• Application Response re: Dealer Media
• Affidavit #5 of Cody Green

The above materials are in relation to Dealer Media’s initial Notice of Application filed on April 28, 2023, seeking an order to lift the Stay of Proceedings as set out below.

The relevant materials can be found under the motion materials tab on this website. 

Status of file as at May 3, 2023

A Court hearing is scheduled for Monday May 08, 2023. At the hearing, the Petitioners are seeking the Court’s approval for the following: 

1. Approval of the proposed claims process in accordance with the Claims Process Order;
2. Extension of the Stay of Proceedings until and including June 29, 2023; and 
3. An increase in the maximum aggregate amount of critical supplier payments (“Pre-Filing Payments”) provided for in the ARIO of $150,000, for a total of up to $1,050,000. 

The Petitioner’s application materials can be found under the Motion Materials tab. A summary of the hearing and any orders made by the Court will be posted to this website shortly after the hearing.

The Monitor has posted its Third Report to the Court (which can be found under the Monitor’s Report’s tab) which inter alia provides detail on the following:

• The activities of the Petitioners and the Monitor since the First Report;
• The Petitioners cash flow from March 20, 2023 to April 23, 2023;
• Lien payments & key suppliers payments;
• The Petitioners revised cash flow projections to July 30, 2023;
• An update on the Restructuring Process;
• A Proposed Claims Process; 
• The Dealer Media Application; 
• An extension to the Stay of Proceedings; and
• The Monitor’s Conclusion.

Status of file as at April 28, 2023

On Friday April 28, 2023, Dealer Media Inc (“Dealer Media”) filed a Notice of Application seeking an order to lift the Stay of Proceedings imposed by the ARIO with respects to the reliefs sought in the Federal Court Action No. T-306-23 against Canada Drives Ltd (a Petitioner in the CCAA). The claims include alleged claims of infringement of Dealer Media’s copyrighted works and seeks, among other relief sought, injunctive relief.

The relevant materials can be found under the motion materials tab on this website.

Status of file as at April 5, 2023

Late on April 4, 2022 a Court hearing was requested by the Petitioners on short notice to seek an order approving the sale of 133 cars to 2213931 Alberta Ltd. ("Go Auto") for $2.9 million CAD (the "Bulk Sale"), in order to comply with the ARIO.

The Monitor's Second Report, filed on April 5, 2023, sets out the details pertaining to the Bulk Sale (found under the Monitor’s Report tab). The Petitioners anticipate that the proceeds from the Bulk Sale will enable the complete payout of their secured lenders.

On April 5, 2023 the Court approved this order.

Status of file as at March 30, 2023 

On March 30, 2023, the Court granted the Amended and Restated Initial Order (the “ARIO”) which extended the Stay Period to May 15, 2023. The Court also authorized:

• The Key Employee Retention Plan (the “KERP”), and a Key Employee Retention Plan Charge (the “KERP Charge”) in the maximum amount of $450,000, in relation to employees deemed key to the wind down plan; and
• Payments to certain pre-filing creditors to a maximum amount of $900,000 with the Monitor’s consent and payment to creditors who hold possessory or statutory liens against any asset of the Petitioners.

The Monitor has posted its First Report to the Court (found under the Monitor’s Reports tab), which provided detail on the following (amongst other things):

• Reasons for financial difficulties and restructuring plan;
• Key Employee Retention Plan;
• Court Ordered Charges; and
• Lien Creditors.

The Petitioners filed the Second Affidavit of Cody Green sworn March 24, 2023, and the Third Affidavit of Cody Green sworn March 28, 2023. The Petitioner's application materials can be found under the Motion Materials tab.

The purpose of the Second Affidavit of Cody Green is to inform the Court of the KERP and the Petitioners activities since the Initial Order.

The Third Affidavit of Cody Green pertains to Car-Fre and its non-compliance with the Initial Order prior to March 30, 2023. This matter was resolved on March 30, 2023 after the Notice of Application was submitted, and the details of the resolution were heard in Court on March 30, 2023.

Status of file as at March 20, 2023

On March 20, 2023 (the "Filing Date"), 1195407 B.C. Ltd., Canada Drives Ltd., USA Drives Ltd., and Canada Drives Auto Finance Ltd. (collectively the “Company” or “the Petitioners”) sought and obtained an Initial Order of the Supreme Court of British Columbia (the “Court”) pursuant to the Companies’ Creditors Arrangement Act (the “CCAA”).

PricewaterhouseCoopers Inc. LIT (“PwC”) was appointed as the Monitor. As a result of the CCAA filing, there is a stay of proceedings in place until March 30, 2023, (the “Initial Stay”), subject to any extensions of the Initial Stay that the Court might grant upon application by the Company.

The next court application will be Thursday March 30, 2023.

Notice of the CCAA and the Monitor’s appointment will be emailed or mailed to all affected creditors shortly and will be posted under the creditor’s communication tab.

The Monitor will post regular status updates to this website and post future Monitor reports and Court materials, as they become available during the CCAA proceedings.