Engagements

BG Furniture Ltd.

Receivership

By an Order of the Honourable Justice Newbould of the Ontario Superior Court of Justice (Commercial List) (the “Court”) dated January 12, 2017 (the “Receivership Order”), A. Farber & Partners Inc. (“Farber”) was appointed receiver (the “Receiver”) of all the assets, undertakings and properties of BG Furniture Ltd. (“BG”).

The Receiver entered into an agreement with Maynards Industries Canada Ltd. (“Maynards”) to liquidate the inventory and equipment of BG. A public auction sale was conducted by Maynards on Wednesday, March 22, 2017 starting at 10:00 a.m. Interested parties were able to bid on items for sale by attending in person or online. Details of the auction sale can be found on Maynards website here: http://www.maynards.com/auctions/industrial/auction-details/bg-furniture

The Receivership Order does not stay or restrict the rights of the mortgagee, Platinum Investment Group Inc. (“Platinum”), with a first charge on the real property of BG, municipally known as 75 Ridout Street, Walkerton, Ontario (the “Real Property”), in respect of, among other things, Platinum’s rights to enforce its mortgage security. The Receiver has been notified that Platinum is undertaking power of sale proceedings to sell the Real Property outside of the receivership proceedings.

The Receiver is currently in the process of finalizing the administration of the receivership estate.  Accordingly, the Receiver will be making a motion to Court (the “Receiver’s Motion”) for the approval of, among other things, the distribution of funds by the Receiver and the discharge of the Receiver.  A copy of the motion record, returnable August 4, 2017, for the Receiver’s Motion is found below.

Bankruptcy

On December 14, 2016, BG filed a Notice of Intention to Make A Proposal (the “NOI”) pursuant to the provisions of s. 50.4(1) of the Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, as amended (the “BIA”) and Collins Barrow Toronto Limited (“CBTL”) was appointed as proposal trustee in BG’s NOI proceedings (the “Trustee”).

On December 22, 2016, BG made a motion to Court (the “BG Motion”) to approve, among other things:

  • a 45 day extension to the NOI proceeding;
  • a DIP loan facility;
  • a sale and investment solicitation process with a stalking horse bid;
  • a first ranking Administration Charge (as defined in BG’s motion record returnable December 22, 2016 found below) over the assets of BG; and,
  • a D&O Charge (also as defined in BG’s motion record returnable December 22, 2016 found below).

The relief sought in the BG Motion was disputed by Platinum and Grenville Strategic Royalty Corp. (“Grenville”), both secured creditors, and the BG Motion was dismissed.

On January 12, 2017, Grenville made a motion to Court to, among other things:

  • terminate the NOI proceedings, thus having BG assigned into bankruptcy by order of Court;
  • appoint the Receiver pursuant to the terms of the Receivership Order; and,
  • substitute Farber as Trustee for the purposes of administering BG’s bankruptcy estate.

A copy of the Order of Court approving, among other things, the substitution of Farber as Trustee and the discharge of CBTL as Trustee, is below (the “Bankruptcy Order”).

The First Meeting of Creditors (the “First Meeting”) was held at 150 York Street, Suite 1600, in the city of Toronto, Ontario, at 2:00 p.m. on the 2nd day of February, 2017. At the First Meeting, the appointment of Farber as Trustee was confirmed by the creditors.

For employees seeking payment of claims through the Wage Earner Protection Program (“WEPP”), please be advised that the employees’ deadline for submitting applications to WEPP and filing claims with the Trustee has been extended to April 1, 2017.

A blank Proof of Claim form can be downloaded from the Trustee’s website via the link below.

For further information regarding the bankruptcy and/or receivership proceedings, please contact Allison Palmer at (416) 496-3753 or via email at apalmer@farberfinancial.com.

The purpose of this website is to provide documents to any interested persons regarding this proceeding.  The documents listed below are in pdf format and can be viewed and/or downloaded.  Please feel free to return to this website periodically for future updates on the status of these proceedings. Additional documents and information will be posted as it becomes available.

 

NOI Documents

Proposal Trustee Reports

Motion Materials

Court Orders

Bankruptcy Documents

 

Service List