Prendiville Industries Ltd.

Receivership

Page last updated: February 08, 2021

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 May 28, 2020, pursuant to an order (the “Receivership Order”) of the Queen’s Bench, Winnipeg Centre (the “Court”), PricewaterhouseCoopers Inc., LIT (“PwC”) was appointed as receiver (the “Receiver”), without security, of all of the assets, undertakings and properties (the “Property”) of Prendiville Industries Ltd. (“PIL” or the “Company”), acquired for, or used in relation to a business carried on by PIL, pursuant to section 243(1) of the Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, as amended (the “BIA”). The Receivership Order was granted pursuant to an application made by Canadian Imperial Bank of Commerce (“CIBC” or the “Applicant”).

In accordance with the provisions of the BIA, a Notice and Statement of the Receiver (the “Notice”) will be sent to all known creditors of the Company. A copy of the Notice will be posted on the “Notices” page of this website.


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.

Status of File as of February 8, 2021

On January 21, 2021, the Court issued an order (the “Net Proceeds Allocation and Second Distribution Order”) which, among other things,

  1. Approved the proposed Net Sale Proceeds of $964,030 allocated to the Wellons Kiln as set out in section 8.40 of the Third Report of the Receiver, dated January 8, 2021 (the “Third Report”);
  2. Approved the proposed allocation of the Net Sale Proceeds, Total Sawmill Costs, and NOI Sawmill Costs allocated to the Sawmill Asset Categories as set out in section 8.61 of the Third Report and Section 1.7 of the Erratum be and is hereby approved;
  3. Authorized the Receiver to distribute the Proposed Second Interim Distribution in manner set out in section 8.64 of the Third Report.

All capitalized terms have the meaning given to them in the Third Report the Erratum to the Third Report of the Receiver.

Status of File as of December 17, 2020

On December 17, 2020, the Court issued an order (the “Distribution Order”) which among other things,

  1. Approved the Receiver’s Statement of Receipts and Disbursements as set out in its Second Report, dated December 14, 2020;
  2. Approved the Receiver’s fees and disbursements and those of its legal counsel to October 31, 2020, as set out in the Second Report;
  3. Approved the interim distribution to CIBC the sum of $9,150,000, particulars of which are described in paragraph 3 of the Distribution Order;
  4. Directed the Receiver to hold the sum of $1,750,000 (the “Holdback”) in respect of the Wellons Allocation pending the agreement between CIBC, BDC and NOHFC; and
  5. Unsealed the First Confidential Report of the Receiver, dated September 7, 2020.

Status of File as of September 15, 2020

On September 9, 2020, the Court issued the Sale Approval and Vesting Order which, among other things:

  1. Approved the Sale Transaction of the Purchased Assets to the Purchaser;
  2. Sealed the Confidential Report of the Receiver, dated September 7, 2020; and
  3. Authorized the Receiver, if necessary, to endorse and transfer to the Purchaser or its nominee Prendiville’s Class B shares in the capital of Miitigoog General Partner Inc.

Status of File as of September 8, 2020

On September 8, 2020, the Receiver filed its motion for an order (the “Sale Approval and Vesting Order”) to, among other things:

  1. Approve the sale (the “Sale Transaction”) of certain Prendiville assets (the “Purchased Assets”) to 1347 Investors LLC (the “Purchaser”);
  2. Seal the Confidential Report of the Receiver (the “Confidential Report”), to be filed with the Court; and
  3. Authorize the Receiver, if necessary, to endorse and transfer to the Purchaser or its nominee Prendiville’s Class B shares in the capital of Miitigoog General Partner Inc. (currently in the name of Kenora Forest Products Ltd.).

On the same date, the Receiver filed its First Report (the “First Report”) with the Court to update the Court with the information with respect to:

  1. A background of the Company and its prior insolvency proceedings;
  2. The activities of the Received since the Date of Appointment;
  3. The efforts to realize on the Sawmill Assets (as defined in the First Report);
  4. The results of the realization efforts with respect to other assets of the Company;
  5. The Receiver’s statement of receipts and disbursements (the “SRD”) from the Date of Appointment to September 4, 2020; and
  6. The Receiver’s recommendations with respect to the motion for the Sale Approval and Vesting Order.

The motion will be heard on September 9, 2020.

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