Olav Haavaldsrud Timber Company Limited


In Receivership

Page last updated: May 16, 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 April 11, 2016, on the application of Her Majesty the Queen in Right of Ontario, as represented by the Minister of Finance (the “MOF” or the “Applicant”), an Order was granted by the Ontario Superior Court of Justice (Commercial List) (the “Court”), pursuant to section 243(1) of the Bankruptcy and Insolvency Act, R.S.C. 1985, c.B-3, as amended (the “BIA”) and section 101 of the Courts of JusticeAct, R.S.O. 1990, c.C-43, as amended, appointing PricewaterhouseCoopers Inc. (“PwC”) as receiver and manager (the "Receiver") over the assets, undertakings and properties (the “Property”) of Olav Haavaldsrud Timber Company Limited (“OHT” or the “Company”).

Also, on the same day, an order granted by the Court (the “Sale Process Order”) approving the sale process in respect of the Property of OHT and authorizing the Receiver to implement and conduct the sale process (the “OHT Sale Process”) in accordance with the terms of the Sale Process Order. Information relating to the OHT Sale Process can be found in the “Sale Process” section of this website.

On April 21, 2016 a Notice and Statement of the Receiver was mailed to all known creditors of the Company in accordance with the provisions of the BIA.



Status of file as of May 16, 2017

On May 16, 2017, the Receiver filed the Receiver’s Certificate with the Court pursuant to a Discharge Order granted by the Court on April 4, 2017. The Receiver has completed all activities and all matters in connection with the receivership of the Company and is now discharged from its duties.

Status of file as of April 5, 2017

On April 4, 2017, the Court issued an order (the “Discharge Order”), which:

  1. discharged PwC as the Receiver, effective upon the Receiver filing the Discharge Certificate with the Court;
  2. approved the actions and activities of the Receiver as set out in the Second Report;
  3. approved the Second R&D; and
  4. approved the Professional Fees and the Remaining Professional Fees (as defined in the Second Report) to complete the administration of the receivership proceedings.

Status of file as of March 30, 2017

On March 29, 2017, the Receiver filed its Second Report (the “Second Report”) to provide the Court with the information in respect of:

  1. the closing of the Transaction;
  2. the repayment of the Receivers; Borrowings;
  3. the Receiver’s activities since the First Report, dated August 19, 2016 to the date of the Second Report,
  4. the Receiver’s statement of cash receipts and disbursements from April 11, 2016, the date of appointment, to March 25, 2017 (the “Second R&D”);
  5. the professional fees of the Receiver and its legal counsel, Dentons Canada LLP (“Dentons”), in the receivership (the “Professional Fees”)

and seek an order from the Court:

  1. discharging the Receiver upon the filing by the Receiver of the Discharge Certificate (the “Discharge Certificate”) with the Court;
  2. approving the Second Report of the Receiver and the actions and activities of the Receiver as set out in the Second Report;
  3. approving the Second R&D;
  4. approving the Professional Fees and the Remaining Professional Fees (as defined in the Second Report) to complete the administration of the receivership proceedings.

The motion will be heard on April 4, 2017.

Status of file as of September 1, 2016

On August 30, 2016 the Transaction with Hornepayne Lumber GP Inc. was closed.

Status of file as of August 26, 2016

On August 26, 2016, the Court issued

  1. an order (the “Approval and Vesting Order”), which among other things:
    1. approved and authorized the Hornepayne Lumber APA, and approved the Transaction;
    2. approved the vesting of the Company’s right, title and interest, if any, in and to the OHT Assets free and clear of all encumbrances, subject to the terms of the APA;
    3. approved the sealing of the Bid Summary; and
    4. approved the sealing of the unredacted Hornepayne Lumber APA;
  1. and an order (the “Order”) approving the Receiver’s activities and the First Report.

Status of file as of August 19, 2016

On August 19, 2016 the Receiver filed its First Report to the Court (the “First Report”) as part of a motion filed by the Receiver to provide the Court with the information with respect to:

  1. background information in respect of OHT;
  2. the Receiver’s activities since the date of appointment to the date of this First Report;
  3. the OHT Sale Process undertaken by the Receiver to effect a sale of the OHT Assets (as defined in the First Report);
  4. the asset purchase agreement dated July 14, 2016 (the “Hornepayne Lumber APA”) entered into by Hornepayne Lumber Limited Partnership by its general partner Hornepayne Lumber GP In (the “Purchaser”) and the Receiver with respect to the purchase and sale of the OHT Assets (the “Transaction”);
  5. the Receiver’s receipts and disbursements from the date of appointment to August 7, 2016;
  6. the request for an order (the “Approval and Vesting Order”):
    1. approving and authorizing the Hornepayne Lumber APA, and approving the Transaction;
    2. vesting the Company’s right, title and interest, if any, in and to the OHT Assets free and clear of all encumbrances, subject to the terms of the APA;
    3. sealing the Bid Summary (as defined herein), which will be filed with the Court as Confidential Appendix “A”;
    4. sealing the unredacted Hornepayne Lumber APA which contains commercially sensitive information, which will be filed with the Court as Confidential Appendix “B”; and
    5. approving the activities of the Receiver as described in this First Report.

The motion will be heard on August 26, 2016.

Status of file as of July 6, 2016

On June 27, 2016, the Receiver issued a notice to Phase 2 Qualified Bidders in the OHT 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 June 2, 2016, the Court issued an Order approving the amendment made to the defined term “OHT Process Parties” in the Sale Process Communication Protocol to include the Crown.

Status of file as of June 1, 2016

On May 31, 2016 the Receiver filed a motion for an Order approving an amendment to the defined term “OHT Process Parties” in the Sale Process Communication Protocol (as defined in the Sale Process Order) to include “Her Majesty the Queen in Right of Ontario as represented by the Minister of Finance and the Minister of Natural Resources and Forestry (formerly Minister of Northern Development, Mines and Forestry” (collectively, the “Crown”).

The motion will be heard on June 2, 2016.



For more information, please contact: Tammy Muradova, Telephone: +1 844 687 1783, or via Email.
 

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Tammy Muradova

Tel: +1 844 687 1783
Email