Quest University Canada

CCAA

Page last updated: May 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 May 28, 2020

At today’s court hearing, the Court approved the following key points in respect to Quest’s application:

  • The stay of proceedings has been extended to August 10, 2020.  However, if definitive agreements between Quest and its academic partner are in place by July 31, and, if the Monitor serves notice of those definitive agreements being in place by July 31 on the Service List by August 4, then the stay of proceedings will be extended to September 30, 2020.
  • The Amended Interim Loan Agreement and subsequent charge was approved, which provides Quest with sufficient cash flow to support its restructuring efforts to September 30, 2020.
  • The June Payment due to Southern Star Developments Ltd. will be made by Quest, however, the funds will be paid into a trust account held by the Monitor, pending further order from the Court.  The Court will hear this matter on June 10, 2020.

A copy of the Court Order will be posted to the Court Orders tab as soon as possible. 

Status Update as at May 27, 2020

A court hearing is scheduled for Thursday, May 28, 2020.  

Quest University Canada (“Quest”) has made signficant progress in its search for an academic partner, even though COVID-19 has had a significant impact on that search.  Presently, Quest is seeking more time to finalize agreements leading to a transaction with an academic partner, and as such, Quest is seeking Court approval to extend the stay of proceedings until at least August 10, 2020, and possibly September 30, 2020.  

Quest has secured additional interim financing from RCM Capital Management Ltd. to facilitate the extended timeframe needed to finalize agreements with an academic partner.  Accordingly, Quest is also seeking Court approval on the additional interim financing.  

Quest’s application materials can be found under the Motion Materials tab.  The Monitor’s Second Report to Court, which speaks to the approvals that Quest is seeking from the Court, can be found under the Monitor’s Reports tab.  A summary of the hearing and any orders made by the Court will be posted to this website shortly after the hearing.  

Status Update as at January 28, 2020

At yesterday’s Court hearing, the Court granted Quest’s request for an extension of the stay of proceedings to May 29, 2020.  Additionally, the Court granted Quest’s request and approved an interim lending facility to Quest from RCM Capital Management Ltd.  Both requests are reflected in the Amended and Restated Initial Order (“ARIO”), which can be found under the Court Orders tab.  The application by Vanchorverve to advance their interim financing facility to Quest, and to remove and replace four board members, was dismissed by the Court.      

Today, Quest and Vanchorverve reached a consent agreement which resulted in an Order directing Vanchorverve (and any of its agents, employees, etc.) to restrain from communicating directly or indirectly with the current students, and/or the current faculty of Quest until the termination of the CCAA proceedings, or until further order of the Court.  A copy of the Order can be found under the Court Orders tab.  

Status Update as at January 24, 2020

A Court hearing is scheduled for Monday, January 27, 2020. At the hearing, Quest University Canada (“Quest”) will be seeking Court approval to extend the stay of proceedings until May 29, 2020. Additionally, Quest will be seeking Court approval on its interim financing requirement from RCM Capital Management Ltd. Quest’s application materials can be found under the Motion Materials tab.

Opposing Quest’s application is Vanchorverve Foundation (“Vanchorverve”), whose application seeks to remove and replace certain board members from Quest.   Additionally, Vanchorverve seeks to have Quest obtain their interim financing from Burley Capital Inc., instead of RCM Capital Management Ltd. Vanchorverve, if not successful in its application, also seeks to have the Court direct to have a sales and investment solicitation process order granted. Vanchorverve’s materials can also be found under the Motion Materials tab.  

The Monitor has posted its First Report to Court (found under the Monitor’s Reports tab), which speaks to the approvals that Quest is seeking from the Court, and the Vanchorverve application. A summary of the hearing and any orders made by the Court will be posted to this website shortly after the hearing.  

Status Update as at January 16, 2020

On January 16, 2020, Quest University Canada (“Quest”) filed for creditor protection pursuant to Section 3(1) of the Companies’ Creditors Arrangement Act, and PricewaterhouseCoopers Inc. LIT (“PwC”) was appointed Monitor.

As a result of the CCAA filing, all creditors are stayed from commencing or continuing any proceedings against Quest until January 27, 2020, (the “Initial Stay”), subject to any extensions of the Initial Stay that the Court might grant upon application by Quest.

Notice of the CCAA and the Monitor’s appointment will be mailed to all affected creditors of Quest before January 23, 2020.

More information will be posted to this website, as soon as it becomes available.

 

Contact us

Kiran Chahal

Senior Associate, PwC Canada

Tel: 604-806-7787

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