Encore Sales

Encore filed a Notice of Intention to Make a Proposal (“NOI”) pursuant to the provisions of the Bankruptcy and Insolvency Act (“BIA”) on September 27, 2011, and A. Farber & Partners Inc.(“Farber”) was appointed as Proposal Trustee.

Status Updates

On October 25, 2011, by Order of the Honourable Justice Brown, the deadline to file a Proposal was extended to December 12, 2011.

Ultimately, a restructuring proposal could not be completed by the Company. As a result, the first secured lender brought a motion to terminate the BIA proposal proceeding and appointed Farber as receiver (the “Receiver“). This motion was granted on December 8, 2011, by the Honourable Justice Morawetz. As a result, Encore was deemed to have made an assignment into bankruptcy effective December 8, 2011.

During the NOI process, the Company completed two Court-approved sale transactions. After the Receivership, the Receiver undertook a third Court-approved sale. The assets remaining consisted of a small amount of inventory and fixed assets plus accounts receivable. In the event that there were sufficient proceeds to pay the first secured creditor in full, the residual, if any, would be subject to the interests of certain related party secured creditors. Accordingly, no surplus funds were available for distribution to preferred or unsecured creditors.

The First Meeting of Creditors of the Encore was held on December 29, 2011, at 10:00 a.m. EST at the Office of the Superintendent of Bankruptcy, 25 St. Clair Avenue East, Suite 600, Toronto, Ontario. During the meeting, the appointment of Farber as bankruptcy Trustee was affirmed.

The Trustee in Bankruptcy obtained an Order Discharging Trustee on March 4, 2016.

Creditor or Employee Enquiries

For creditor or employee enquiries, please contact:
Geanina Schmidt
T: 416.496.3753
E: gschmidt@farbergroup.com

The case updates and court filed documents on this website are for information purposes only and you should consult your financial or legal adviser if you have any questions or concerns about your rights or obligations. Additional updates on the status of these proceedings may become available in the future.


NOI/Bankruptcy Documents

Court Reports

Motion Materials

Court Orders