Engagements

Quality Meat Packers Limited and Toronto Abattoirs Limited

NOI / BANKRUPTCY / RECEIVERSHIP

NOI Proceedings

Quality Meat Packers Limited (“QMP“) and Toronto Abattoirs Limited (“TAL“) (collectively, the “Companies“) are Ontario incorporated companies that operated a pork processing and packaging business from their leased facility in Toronto, Ontario. The Companies’ financial positions have been negatively affected by a number of factors including the volatility of the price of pork.

The Companies each filed a Notice of Intention to Make a Proposal (“NOI“) pursuant to the provisions of the Bankruptcy and Insolvency Act (“BIA“) on April 3, 2014 and A. Farber & Partners Inc., a member of Farber Financial Group (“Farber“) was appointed as Proposal Trustee.  The effect of the NOI is that it provides an initial 30-day stay of proceedings (which can be extended by Court Order) over all amounts owing to creditors.

Bankruptcy Proceedings

The Companies did not file proposals or obtain Court-approved extensions of the initial 30-day stay period before it expired at the end of the day May 5, 2014; accordingly, the Companies were deemed bankrupt effective May 6, 2014.  The Proposal Trustee automatically became the Bankruptcy Trustee pursuant to the provisions of the BIA.  Copies of the bankruptcy certificates of appointment are attached below.

The Bankruptcy Trustee assisted the Companies in preparing the Statements of Affairs which the BIA requires be filed within 5 days of bankruptcy.  The Bankruptcy Trustee has sent a Notice to Creditors (copies are posted below), which includes the Statement of Affairs, to all creditors listed therein.  Please note that the amounts listed as owing to creditors on the Notice to Creditors are estimates only based on the Companies’ books and records.  Creditors have an opportunity to file a Proof of Claim for the actual amounts owing to them.  The Proof of Claim form is also be included in the Notice to Creditors.

The First Meeting of Creditors was held on June 5, 2014 at 10:00 a.m. at The Sheraton Centre Toronto, Willow East & Centre Room, 123 Queen Street West, Toronto, Ontario.

Employee Matters

The effect of the bankruptcy is to cancel all contracts, including the termination of the employees.

Wages and vacation pay owing to the employees have been paid up to and including May 5, 2014.

The Companies will soon be issuing ROE’s and 2014 T4’s to the employees.

The creditors and employees should receive the Notice to Creditors, noted above, by mail by May 16, 2014.

The Receiver (defined below) has also prepared and sent letters to employees with the calculation of their termination and severance pay, as well as instructions on how to apply to the Wage Earner’s Protection Program (“WEPP“).  This information will also be forwarded to WEPP to assist employees in making a claim to WEPP.

Court Proceedings

April 10, 2014 – Motion from certain hog producers

On April 7, 2014, certain of the hog producers brought an application to Court seeking to have the Companies placed into bankruptcy or receivership which would have the effect of granting the hog producers a super-priority over the inventory pursuant to s.81.2 of the BIA.  The matter was heard before Justice Brown of the Ontario Superior Court of Justice (Commercial List) and Justice Brown dismissed the motion.  The Proposal Trustee’s First Report, Supplemental First Report and the April 11, 2014 Endorsement with Reasons of Justice Brown are linked below.

On May 2, 2014, a secured creditor filed motion material to be heard on May 6, 2014.  The secured creditor is seeking the appointment of Farber as Court-appointed receiver in the event the Companies do not file a proposal by the end of the day, May 5, 2014.  The motion material and the Proposal Trustee’s Second Report are linked below.

May 6, 2014 – Appointment of Receiver

On May 6, 2014, a secured creditor sought the appointment of Farber as a Court-appointed Receiver to administer the orderly realizations of the Companies’ assets.  The matter was heard before Justice Brown.  Justice Brown approved the appointment of Farber as the Receiver of the Companies.  The Appointment Order and endorsement of Justice Brown are linked below.

Paragraph 4(k) of the Appointment Order empowers the Receiver “to market any or all of the Property, including advertising or soliciting offers and/or auction proposal in respect of the Property or any part or parts thereto and negotiating such terms and conditions of sale and/or auction…”.

June 18, 2014 – Sale of Assets

On June 18, 2014, the Receiver will be seeking the approval of a liquidation offer received for the plant equipment and office furniture of TAL and QMP.  The Motion material and the Receiver’s First Report are linked below.

July 15, 2014

On July 15, 2014, the Receiver brought a motion for Court approval of the Receiver’s Second Report including approval of distributions to secured creditors and the Receiver’s and its counsel’s activities and fees as set out therein.  The Motion material, including the Receiver’s Second Report, is linked below.  A copy of the Court Order by Justice Brown dated July 15, 2014 as sought by the Receiver is also linked below.

November 5, 2014 – Receiver’s Third Report

On November 5, 2014, the Receiver brought a motion for Court approval of the Receiver’s Third Report including approval of further distributions to secured creditors and the Receiver’s and its counsel’s activities and fees as set out therein.  The Motion material, including the Receiver’s Third Report, is linked below.  A copy of the Court Order by Justice Pattillo dated November 5, 2014 as sought by the Receiver is also linked below.

The purpose of this website is to provide documents to any interested persons regarding the Proposals of the Companies.  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.

Documents:

Reports:

Court Documents:

Hearing  – November 5, 2014

Hearing – July 15, 2014

Hearing – June 18, 2014

Hearing – May 6, 2014

Hearing – April 10, 2014