ILTA Grain Inc.

CCAA

Page last updated August 28, 2020

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 Update as at August 28, 2020 

On August 25, 2020, the Court has granted the following: 

  1. an approval and vesting order approving a transaction between the Petitioners and DG Global West Inc. and granting related relief, 
  2. an order extending the CCAA stay of proceedings to February 28, 2021, and 
  3. an order sealing the Confidential Supplement. 

Copies of Court Order can be found under the Court Order tab.

Status Update as at August 20, 2020 

The Monitor has filed notice of application seeking: 

  1. an approval and vesting order approving a transaction between the Petitioners and DG Global West Inc. and granting related relief; 
  2. an order extending the CCAA stay of proceedings to February 28, 2021; and 
  3. an order sealing the Confidential Supplement.

A copy of the application can be found under the "Motion Materials" tab. 

The Monitor has also filed its Ninth Report to the Court, which is available under the "Monitor's Report" tab. 

The application will be heard by teleconference on Tuesday, August 25, 2020 at 9:00 am Pacific Time. If you plan to attend by telephone at the hearing, please contact the Monitor to obtain the dial-in information and to be added to the counsel list to be provided to the Court.

Status Update as at May 25, 2020 

On May 25, 2020, the Court granted an Order extending the Stay of Proceedings to August 31, 2020 ("Fourth Stay Extension Order"). A copy of this Order can be found under the Court Order tab. A return to Court date is currently scheduled to be August 25, 2020 at 9 a.m. Pacific Time.

Status Update as at May 22, 2020 

The Monitor, on behalf of the Company, is making an application to Court for an extension of the stay of proceedings to July 31, 2020 in order to finalize a potential sale transaction of the residual assets of ILTA. A Court hearing will be held on May 25, 2020 at 11 am Pacific Time. The Monitor has issued its 8th Report to Court. A copy of this report can be found under the Court Report tab.

Status Update as at February 24, 2020 

A Court Order has been made with respect to the funds held by the Monitor on February 21, 2020. A copy of this order can be found under the Court Order tab.

Status Update as at February 10, 2020 

Court hearing of HSBC’s application for, among other things, the release of funds held by the Monitor, was held from January 20, 2020 to January 24, 2020. Parties made their submissions to the Court and the hearing will continue on February 18, 2020 at 10 a.m. Vancouver time at the Supreme Court of British Columbia.

Status Update as at January 9, 2020 

HSBC’s application for, among other things, the release of funds held by the Monitor, which was scheduled to be heard on January 9th & 10th, was adjourned until January 20, 2020. However, the Court made an Order directing the Monitor to make a distribution to HSBC of CDN $2,855,486.62 and USD $81,612.24 (the “Undisputed Funds”) from the funds held by the Monitor. A copy of this Order is available under “Court Order” tab. 

The Monitor also applied to the Court for an Order: 

  • authorizing the Monitor to exercise enhanced powers in respect of the Petitioners;  
  • extending the CCAA stay of proceedings to May 31, 2020; and 
  • amending the Distribution Order of the Court dated October 22, 2019 to enable the Petitioners, with the consent of the secured creditors, to access additional funding (in excess of the $1,600,000 previously authorized pursuant to the Distribution Order) if necessary to fund the remaining costs of these CCAA proceedings. 

The Court made the Order sought by the Monitor. However, as the application was made with short notice, the Order provides that any interested party may apply to the Court to vary or amend the Order on or before January 15, 2020 by providing not less than two days’ notice on the Service List. A copy of this Order is available under “Court Order” tab. 

The Monitor’s 7th report and application materials are posted on this site under the “Monitor’s Reports” and “Motion Materials” tab respectively.

Status Update as at January 8, 2019 

HSBC has filed a reply to the application response filed by the Commission. This reply is available under the "Motion Materials" tab.

Status Update as at January 7, 2019 

HSBC has filed a reply to the application response filed by Atradius. This reply is available under the "Motion Materials" tab.

Status Update as at January 6, 2019 

On January 6, 2019, the Attorney General of Canada on behalf of the Canada Grain Commission (the "Commission") has filed an application response to the notice of application of HSBC filed December 17, 2019. The Commission: 

  • Consents to none of the orders sent out in Part I of the notice of application; 
  • Opposes to the granting of the orders set out in paragraphs 1, 3, and 4 of Part 1 of the notice of application; 
  • Takes no position on the granting of the orders set in in paragraph 2 of Part I of the notice of application. 

Further details on this application responses is available under the "Motion Materials" tab.

Status Update as at January 3, 2020

On November 5, 2019, the sale of North Battleford Rail, North Battleford Head Office, Swift Current and Cut Knife facilities was closed. On November 22, 2019, the sale of Saskatoon facility and certain assets of the Surrey Head Office was closed. 

A summary of ILTA Group’s activities during the CCAA Proceedings, include an update position of creditors, has been reported in the Monitor’s Sixth Report, which is available under “Monitor’s Report” tab. 

On December 17, 2019, HSBC Bank Canada and as agent for Export Development Bank Canada (the “HSBC”) filed a notice of application for a hearing on January 9th and 10th, 2020, seeking: 

  • An Order that the Escrow Funds to be paid to HSBC; 
  • An Order that $11 million held in trust by the Monitor to be paid to HSBC; 
  • Special Costs of this application against CGC and Atradius, or, in the alternative ordinary costs; and
  • An order directing CGC and Atradius to pay the costs of the Monitor, its counsel and ILTA’s counsel incurred directly or indirectly in providing the factual background for this application and in their court attendances related thereto. 

This notice of application and First affidavit of Paul Irving can be found under “Motion Materials” tab. 

On December 30, 2019, Atradius filed an application response and opposes the granting of all the orders set out in HSBC’s notice of application filed on December 17, 2019. This application response can be found under “Motion Materials” tab. 

A hearing will be held on January 9th and 10th, 2020 at 9:45 a.m. Vancouver time at the Supreme Court of British Columbia pursuant to the above notice of application. 

Status Update as at November 1, 2019 

On November 1, 2019 the Court approved the sale of the remaining facilities of ILTA Group. The expected closing date is November 5, 2019. 

Copies of the Court Orders are available under the “Court Orders” tab.

Status Update as at October 22, 2019

On October 21, 2019, the Court granted the following:

  1. Second Stay Extension Order further extending of the Stay Period until January 17, 2020; and
  2. Transfer of Funds Order requesting Bank of China to transfer ILTA Group’s funds to a designated HSBC bank account.

Copies of the Court orders are available under the “Court Orders” tab. Copies of Monitor’s Fourth and Fifth Reports are available under the “Monitor’s Report” tab.

On the same date, the Court also heard the application for:

  1. Approval of the proposed Sale Transactions for the remaining five processing facilities of ILTA Group; and
  2. Approval to distribute realized funds to the secured lenders.

With respect to the sale transactions approval, the Court did not raise any material issues, but for completeness directed that the Province of Saskatchewan be served with the application materials prior to a final determination by the Court.

To give ILTA Group the time to effect such service, the hearing in respect of the sale transactions has been adjourned to October 29th at 10:00 am Pacific Time.

With respect to the application for approval of distribution, Atradius (Canada Branch), Atradius Crédito y Caución S.A. de Seguros y Reaseguros (“Atradius”) responded to ILTA Group's application with a request to hold back the distribution of a further $11 million of Available Funds. This request is to allow time for the review process of unpaid producers by the Canada Grain Commission to be completed. Parties agreed to this request.

On October 22, 2019, the Court granted the Distribution Order:

  • Permitting ILTA Group or the Monitor, on behalf of ILTA Group, to make distributions from Available Funds to repay Interim Lender of the Interim Financing and to repay the secured pre-filing lenders of the pre-filing debt in accordance to the priority security interests;
  • Directing the Monitor to hold back $11 million of Available Funds arising from sale of inventory by ILTA Group, in addition the Escrow Funds of approximately $3 million previously held; and
  • Authorizing ILTA Group to use the Available Funds up to the amount of $1.6 million to make any payments or disbursements permitted pursuant to the Initial Order.

Copies of the Distribution Order can be found under “Court Orders” tab.

Status Update as at August 23, 2019 

On August 23, 2019 the Court approved the sale of the Belle Plaine facility. The expected closing date is August 27, 2019. 

Copies of the Court Orders are available under the “Court Orders” tab. 

The Monitor’s Third Report is available under “Monitor’s Report” tab.

Status Update as at August 7, 2019 

On August 6, 2019 the Court granted approval of; 

  1. An extension of the Initial Stay until November 7, 2019; and 
  2. An amendment to the Initial Order to allow small immaterial asset sales to be approved by the Monitor. 

The Monitor’s Second Report is available under “Monitor’s Reports” tab.

Status Update as at July 24, 2019 

Please be advised the toll free contact number for the Canadian Grains Commission provided in the Company Letter to Grain Suppliers is incorrect. Please use the following contact information. 

Canadian Grains Commission 
Tel: 1-800-853-6705 
Email: corey.birch@grainscanada.gc.ca

Status Update as at July 19, 2019

On July 18, 2019, the Court granted approval of;

  1. The sale and investment solicitation plan ("SISP");
  2. A $8.0 million CAD Interim Financing Agreement; and
  3. Approval of an increase in the Monitor's powers.

The comeback hearing is set for August 6, 2019 at 11:30 AM Vancouver time at the Supreme Court of British Columbia.

Copies of the Court orders are available under the “Court Orders” tab.

The Monitor’s First Report to the Court regarding the matters above is available under “Monitor’s Reports” tab.

Status Update as at July 15, 2019 

The ILTA Group will seek Court approval for interim financing as well as the authorization to commence a sales process for its assets and operations on Thursday, July 18, 2019 at 9:00 AM Vancouver time.

Status Update as at July 8, 2019

On July 8, 2019  (the "Filing  Date"), ILTA Grain Inc. and NGP Grain Holdings, Inc. (“ILTA  Group”) 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, all creditors are stayed from commencing or continuing any proceedings against the ILTA Group until August 7, 2019, (the “Initial Stay”), subject to any extensions of the Initial Stay that the Court might grant upon application by the ILTA Group.

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

The initial application materials have been posted under the Motion Materials tab.  The entered Court Order will be posted under the Court Orders tab once it is available.

The next court application will be this Friday, July 12, 2019 where the ILTA Group will seek approval for interim financing as well as the authorization to commence a sales process for its assets and operations. 

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

Jing Shi

Senior Manager, Consulting & Deals, PwC Canada

Tel: +1 604 806 7647

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