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Page last updated: September 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.
The United States Bankruptcy Court for the Central District of California (the "US Court") heard PwC's emergency application for provisional relief today as part of the process to obtain recognition of the Canadian Receivership and Bankruptcy proceedings. A hearing for the final recognition of the Canadian Proceedings has been scheduled for 11:00 am on October 17. The US Court made several orders that apply until the hearing on October 17. In general, the US Court:
Orders from the US Court will be posted in the Court Orders section of this website upon receipt from the US Court.
On September 20, 2023, PwC as Receiver and Trustee in the MMAC/Martel insolvency matters, filed a ‘Chapter 15 Petition for Recognition of a Foreign Proceeding’ to obtain a recognition of the Canadian proceedings from the US Bankruptcy Court. Further, PwC has requested provisional relief from the US Bankruptcy Court and an emergency hearing is set for Friday September 22, 2023 at 10:00 AM Pacific Time in the US Court to consider this request. A link to the hearing is provided below:
Videoconference URL: https://cacb.zoomgov.com/j/1603191482
Meeting ID: 160 319 1482 Password: 956411
For further details, please consult the instructions on the Court’s website: https://www.cacb.uscourts.gov/judges/honorable-scott-c-clarkson.
Court materials for the US applications, as they become available, will be posted under a new tab above “US Court Materials”. A further status update will be posted when available.
As mentioned in the previous status update, the BC Supreme Court (the “Court”) granted 7 court orders at the September 11, 2023 hearing, as sought by PwC in its capacities as Receiver and Trustee. A brief summary of the orders is below:
1) Contempt of Court – the Court has found Martel in contempt of court, and a warrant has been issued for his arrest, and to be brought before a Judge of the BC Supreme Court. The Receiver is currently working with policing authorities to have the warrant placed into various policing databases.
2) Consolidation of MMAC and Martel Bankruptcy Proceedings – the Court has approved the combining of the bankruptcy estates of MMAC and Martel, so that there is only one bankruptcy proceeding under MMAC, for all debts of MMAC and Martel. This order streamlines various statutory activities and importantly alleviates the need for investors to file their claims against Martel (who personally guaranteed their investment) if they have already filed their claim in MMAC.
3) Amended Recognition and Recovery Funding – this order grants the Receiver the authority to borrow up to $600,000 (increased from $400,000) pursuant to the terms of the Vegas Recovery Note.
4) Funding Agreement Approval – this order authorizes the Receiver to enter into a Funding Agreement for $600,000 with 1548199 Alberta Ltd. As such, the Receiver is now able to engage US counsel to pursue the net proceeds from the sale of the Las Vegas property owned by Martel, among other initiatives.
5) Amended Substituted Service – the original Substituted Service order granted the Receiver (and any other party the power) to serve Martel at one of two email addresses he had provided. This amended order adds a third email address for service.
6) Substituted Service – Bankruptcy Proceedings – this order allows the same powers as conferred to the Receiver (as in the above order) to the Trustee in the bankruptcy proceedings.
7) Third Amended Investigatory Powers – this order extended the powers as conferred on the Receiver from October 31, 2023, to February 28, 2024, so that the Receiver can continue its investigation into Martel’s Related Corporations.
A mailing to creditors was also completed today. For investors who have filed a claim already in the MMAC proceedings, no further action is required.
As a result of yesterday’s court hearing, 7 court orders were granted and are now posted under the Court Orders tab. Another status update summarizing yesterday’s court hearing and orders will be posted in due course. Additionally, a mailing to all creditors is also underway.
Below is a link to today's court hearing
Call in (Audio only)
The Receiver's Sixth Report and the Trustee's First Report have been posted to their respective categories (Receiver's Reports and Bankruptcy Documents - MMAC). Additionally, all application materials have been posted to the Court Materials tab.
The Court Order declaring Gregory Martel bankrupt on August 31, 2023 has been posted to a new header above (Bankruptcy Documents - Gregory Martel). Additionally, today the Court granted another order approving the Trustee's request to transfer the Martel bankruptcy proceedings from the Victoria Court to the Vancouver Court. A copy of the transfer order has also been posted to the new header above.
As a reminder, on September 11 (and potentially Sept 12), counsel for Mr. Martel will be speaking on two matters, those being to have the Receiver’s Third, Fourth and Fifth Reports sealed, and an adjudication of Mr. Martel’s application for a constitutional exemption.
In the same hearing, the Receiver will bring its application to have Mr. Martel held in contempt. The Receiver will also seek an order to approve the funding as noted in the Receiver's Sixth Report, and to seek an extension of the ARIPO to February 28, 2024, thus extending the powers conferred thereunder to the Receiver.
And, the Trustee will bring an application to have the Court approve to 'consolidate' procedurally the personal bankruptcy proceedings of Gregory Martel with that of the MMAC bankruptcy proceedings. The consolidation is being done to streamline the two bankruptcy proceedings. More information will be released to stakeholders after the completion of the hearing.
The Trustee's First Report to Court, the Receiver's Sixth Report, court application materials and additional status updates will be posted in due course as we prepare for the hearing. We confirm that the hearing will be able to be attended virtually via a link that will be provided on this website, between 9:00 - 10:00 am on September 11.
Today a bankruptcy order was granted against Gregory Martel, by the BC Supreme Court in Victoria, BC. A copy of the bankruptcy order will be posted to this website, once obtained after filing with the Court Registry. There will be more information for stakeholders posted in the days to come concerning the personal bankruptcy of Mr. Martel.
Additionally, the Receiver is proceeding on its September 11th application to have Mr. Martel declared in contempt, and the materials concerning this application have been posted under the Court Materials tab.
The Receiver is pleased to announce that it has entered into a funding agreement with a single investor who has agreed to provide $600,000 in funding to the Receiver. This funding agreement is conditional upon the approval of the inspectors of the bankruptcy estate of MMAC and the approval of the Court. Today the inspectors approved the funding agreement and the Receiver will be seeking the court's approval of the funding agreement as soon as possible in early September. Having this funding in place will facilitate the recovery of the value in the Las Vegas Property owned by Mr. Martel. A key step in that process is obtaining a bankruptcy order against Mr. Martel during the hearing scheduled for August 31, 2023, in Victoria. Following that, counsel in the United States will be retained to obtain Recognition Orders from a court in the United States.
The funding agreement provides additional funding which will prove to be helpful as it will fund the ongoing court applications being made by Mr. Martel which have obstructed the Receiver's attempts to gain relevant information from Mr. Martel on the Bridge Loans amongst other matters. Further, it will help fund other recovery initiatives that the Receiver wishes to pursue. Details of the fundinging agreement will be contained in the next Receiver's report which will be prepared to support the Receiver's application for court approval.
The Receiver has spoken to many investors about this funding request and appreciates the few investors who chose to fund the initiative. Following court approval of the funding agreement, the Receiver intends to return these monies to the few investors who funded the Vegas Recovery Notes to date.
The next court hearing will be on September 11 and 12, 2023. During the hearing, counsel for Mr. Martel will be speaking on two matters, those being to have the Receiver’s Third, Fourth and Fifth Reports sealed, and an adjudication of Mr. Martel’s application for a constitutional exemption. In the same hearing, the Receiver will bring its application to have Mr. Martel held in contempt.
The minutes of the First Meeting of Creditors (in the MMAC bankruptcy proceedings) held on July 26, 2023, are now posted to the Bankruptcy Documents tab.
Today the Court granted two further orders:
1. Further amended the Amended and Restated Investigatory Powers Order extending the time frame during which the Investigatory Powers order remains in place until October 31, 2023.
2. Granted the Recognition and Recovery Funding Order which provides the Receiver with authorization to borrow up to $400,000 to fund recovery efforts in the United States.
The two orders will be posted under the Court Order tab in due course.
At the same hearing the court declined to grant a revised application brought by Greg Martel's counsel to seal the redacted portions of the Receiver's Fifth Report to the Court. As such, an unredacted copy of the Receivers Fifth Report to the Court including appendices has been posted under the Receiver's Report tab.
The court did not hear the original application of Greg Martel's counsel which, amongst other things, sought to seal the Receiver’s Third, Fourth and Fifth reports, and the 1st Affidavit of Greg Martel. Counsel to Greg Martel has indicated they will seek dates for the original application to be heard. The Receiver will post a further update to the website as soon as more information becomes available.
Further, the first meeting of creditors in the bankruptcy proceedings was held on Wednesday July 26, 2023 at 11am. At the meeting the creditors affirmed the appointment of PricewaterhouseCoopers Inc. as Trustee of MMAC in bankruptcy.
The creditors also elected 5 inspectors as listed below:
Below is a link to today's court hearing
Join on your computer or mobile app
Call in (audio only)
As part of the July 26th hearing (as discussed in the July 23 and 24 status updates), counsel for Greg Martel have brought a court application to seek a sealing order, that among other things:
The Receiver has posted its Fifth Report to the Court, now including the appendices, under the Receiver’s Report tab in preparation for the July 26th hearing. Due to the application seeking a sealing order, the Receiver’s Fifth Report still has redacted portions. This was done at the request of counsel to Greg Martel and not at the Receiver’s instance.
Further, 9 additional creditors since the July 21 status update have submitted their Inspector Election Interest form. As such, the Receiver has updated the Inspector Election Interest Candidates & Notes document found under the Bankruptcy Documents tab.
The Trustee's Preliminary to Creditors in the bankruptcy proceedings of MMAC, is available under the Bankruptcy Documents tab.
In preparation for the Court hearing on July 26 (see July 23 status update), two Notice of Applications have been posted to the Court Materials tab. Additionally, the Receiver has posted its Fifth Report to the Court under the Receiver's Reports tab. The posted copy of the Receiver's Fifth Report has redacted portions, and contains no appendices. This was done at the request of counsel to Greg Martel and not at the Receiver’s instance. Mr. Martel’s counsel has advised that he intends on bringing a court application on July 26 to ask the Judge to seal the redacted portions of the Fifth Report. If the Court approves the sealing order, portions of the report will remain confidential. If the Court does not approve the sealing order, another version of the report will be posted to the website with only the redactions that the court approves (if any).
A Court hearing has been scheduled for July 26, 2023 at 10:00 am. During this hearing, the Receiver will be seeking the following:
The Receiver expects to post its next report by end of the day Monday July 24, 2023 subject to legal review. Investors who wish to attend the court hearing virtually may do so. As in the past, the Receiver will post a link to the court hearing by 9:30 am on Wednesday July 26 once it has obtained the link from the Court registry.
Further, the first meeting of creditors in the bankruptcy proceedings is scheduled for 11:00 am on Wednesday July 26, 2023. This meeting will be held virtually using Google Meet and creditors wishing to attend received a link in an email previously sent to them. Creditors who have filed a proof of claim with the Trustee will receive a further email over the next two days with a unique identification number they must use during the creditor meeting if they wish to vote at the meeting. We expect to post a copy of the Trustee’s Preliminary Report to Creditors in the Bankruptcy documents tab of the website by the end of day July 24, 2023, subject to legal review.
During the creditor meeting, PwC will update the creditors on the status of the Receivership and the Bankruptcy proceedings. Topics to be discussed include:
A Question & Answer period will be included in the meeting.
The Receiver has appreciated the cooperation of the Investors and former employees who have provided important information to the Receiver to assist in its work.
Investors now have an opportunity to become more involved in the asset recovery process.
While the Receiver is aware of the anticipated losses to Investors, it is working hard to pursue recoveries for Investors with the limited resources it has. A lawsuit has been commenced in Las Vegas against Greg Martel and MMAC which could put the Vegas Property in jeopardy. The Receiver wishes to move as quickly as it can to pursue the Vegas Property on behalf of the Investors but requires the necessary funding. Applications to the US Courts are necessary to facilitate this and funding for legal costs is critical. Absent the funding requested, the opportunity to pursue the Vegas Property will likely be lost. We request that Investors seriously consider the Receiver’s funding request.
In advance of the First Meeting of Creditors to be held in MMAC bankruptcy proceedings, some creditors desiring to become inspectors have submitted their Inspector Election Interest form. The document can be found under the Bankruptcy Documents tab, and will be updated as additional forms are received.
Today a detailed email was released to all creditors of MMAC, confirming that the First Meeting of Creditors (“FMOC”) for the bankruptcy proceedings will be held on July 26, 2023 at 11:00 am Pacific time. A copy of the email text can be found under the Bankruptcy Documents tab.
The email text also touches on what creditors can expect to occur at the FMOC, and the election of inspectors to provide guidance to the Trustee on various issues to be raised in the bankruptcy proceedings. Creditors interested in becoming an inspector are being asked to complete a short form and return it to the Trustee in advance of the FMOC. The Inspector Election Interest form can also be found under the Bankruptcy Documents tab.
Today the British Columbia Securities Commission (“BCSC”) released a News Release asking the public for information about Shop Your Own Mortgage/My Mortgage Auction Corp. The BCSC’s Criminal Investigations Branch is gathering information via a special on-line form dedicated to the investigation. A link to the News Release and on-line form is here: https://www.bcsc.bc.ca/about/media-room/news-releases/2023/56-bcsc-asks-public-for-information-about-shop-your-own-mortgage-my-mortgage-auction-corp.
A copy of the Court Orders from the June 9th hearing have been posted under the Court Orders tab. In addition to the Substitution Order granted, the Court also granted the Receiver leave to post the MS Team links to this website for all future Court hearings, and as such there should not be any delay at the start of future hearings.
Today the Court granted an Order allowing the Receiver to serve an application for contempt on Mr. Martel substitutionally as well as granting the Receiver liberty to serve any other applications and/or documents on Mr. Martel substitutionally. This means that Mr. Martel can be served via his email addresses. The Order will be posted under the Court Order tab in due course.
Earlier this week, on June 6, the Receiver assigned MMAC into bankruptcy. A creditor mailing will be released to all stakeholders (investors, employees and trade creditors) on Monday, June 12, via email or Canada Post. A new tab on the home page titled Bankruptcy Documents will house all bankruptcy related document and will also be posted in due course.
The link to today's court hearing is shown below. Please note that due to the late posting of the link, that the hearing is standing down until 10:30 am Pacific Time, in order to allow attendees to obtain access.
Join on your computer or mobile app
Call in (audio only)
The Receiver has been advised that there may be new Court procedures to be followed in releasing a court hearing link publicly, and the link may not be available until shortly after 10:00 am Pacific Time tomorrow. The Court is aware that many investors intend to attend the hearing via the link. The link will be posted as soon it becomes available and authorized to be posted publicly. We thank stakeholders for their patience on this issue.
The Receiver's Fourth Report has been posted under the Receiver's Reports tab, and the Receiver's Notice of Application has been posted under the Court Materials tab. Both documents will be referred to at tomorrow's Court hearing. The link to the court hearing will be posted in a status update tomorrow morning, between 9:00 and 10:00 am Pacific time.
We advise that a link to the court hearing to be held on Friday, June 9 at 10:00 am, will be posted in a status update on the morning of June 9, between 9:00 and and 10:00 am. The Receiver's Fourth Report to the Court will also be posted in advance of the hearing, as soon as it is available.
The last set of Court Orders directed Mr. Martel to furnish further information to the Receiver, and, the Receiver has been in contact with Mr. Martel. The Receiver will issue a Fourth Report to the Court in advance of the next court hearing to be held on June 9, 2023. A copy of the report will be posted to this website as soon as it is available.
The Receiver has posted a ‘Questions and Answers’ document to the Investor Communications tab which answers the most commonly asked questions about the receivership, and the questions raised by investors on the town hall call held on May 12, 2023. Additionally, the document has been updated with information from the recent court hearing held on May 17, 2023.
More information will be posted to this website as it becomes available.
At the court hearing held today, the Court issued an amended and restated Receivership Order, which in summary added the following specific items:
Additionally, the Court issued an amended and restated Investigatory Powers Order (“IPO”), specifically:
Copies of the Amended and Restated Court Orders can be found under the Court Orders tab.
Below is the link to today’s court hearing to be held at 10:00 am Pacific Time at the Vancouver Law Courts:
In support of the May 17, 2023 application, the Receiver filed its Third Report to Court dated May 16, 2023. A copy of the Report and the Notice of Application can be found in the “Receiver’s Reports” and “Court Materials” tab, respectively. The court hearing will take place at 10:00 am Pacific time on May 17, 2023.
As done previously, call in details and a link to the court hearing will be posted to this website as soon as available, around 9:30 am Pacific time on May 17, 2023.
A virtual Town Hall meeting for Investors was held today. Over 500 investors joined the call. Neil Bunker from PwC went through a short slide deck (posted to Investor Communications tab above), answered a few questions that had been received in advance, and then took questions from the attendees as time allowed. The meeting lasted for approximately 80 minutes. A “Question and Answer” document is being prepared for Investors and will be posted when completed.
Further updates will be posted as they become available.
We provide the link to MS Teams meeting for the Investors Town Hall meeting to be held on Friday, May 12, 2023 at 11:00 am Pacific Time:
Join by phone (CA) +1 647-476-2802 Access code: 433434077
A Town Hall meeting is being called for Investors in MMAC. It will be held tomorrow, Friday May 12, 2023 at 11:00 am Pacific Time. It will not be longer than 60 minutes in length. The agenda for the meeting will cover:
The meeting will be held via MS Teams, and a link to the meeting will be posted in another status update by tomorrow morning at 9:00 am Pacific Time.
The meeting will not be recorded however a list of questions and answers will be posted to the website in due course after the meeting.
In support of the May 9, 2023 application, the Receiver filed its First Report and Second Report to Court dated May 9, 2023. A copy of the Reports and the Notice of Application can be found in the “Receiver’s Reports” and “Court Materials” tab, respectively.
At this hearing, the Court granted an Order (the “Investigatory Powers Order”) which, among other things:
Details for the Appearance at 9th May 2023, 10:00 am at Vancouver Law Courts, 055 are listed below.
As noted in the Receivership Order made May 4, 2023, a court hearing will take place at 10:00 am on Tuesday May 9, 2023 to reconsider the Receivership Order. This hearing will be in person at the Vancouver Law Courts at 800 Smithe Street. The court has, however, arranged for guests to attend virtually by Microsoft Teams. The Teams link to attend virtually will be released by the Court in the morning on Tuesday May 9. The Receiver will post this link as soon as it is received.
On May 4, 2023, the Supreme Court of British Columbia (the "Court") granted an Order (the “Receivership Order”) appointing PwC as Receiver of the assets, undertakings and property of My Mortgage Auction Corp dba Shop Your Own Business. A copy of the Receivership Order can be found under the "Court Orders" tab above.
Senior Manager, PwC Canada