Canada Drives Entities

CCAA

Page last updated: May 8, 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 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.

Contact us

Selena Chiang

Associate, PwC Canada

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