On April 8, 2008, TNG Services Inc. (the “TNG Services“) was deemed bankrupt pursuant to an Order of the Court and A. Farber & Partners Inc. (the “Trustee“) was named as the Trustee in Bankruptcy. TNG Services was a computer hardware vendor and service support company with its head office located in Mississauga, Ontario.
Pursuant to the Sale Approval and Vesting Order of Justice Campbell dated December 29, 2008 (the “Order“), linked below, the assets of, and the claims against, TNG Services were transferred to a new company, TNG Acquisition Inc. (“TNG Acquisition“). TNG was therefore immediately insolvent and filed an assignment in bankruptcy effective February 6, 2009.
TNG was incorporated to carry on the bankruptcy administration of the assets and claims of TNG Services and allow TNG Services to undergo a restructuring. The net effects to former creditors of TNG Services are:
- They are no longer creditors of TNG Services;
- They are now creditors of TNG Acquisition;
- The assets of TNG Services have been transferred to TNG Acquisition, thus, the assets that were previously available to creditors of TNG Services are still available to them through the TNG Acquisition estate; and,
- The TNG Acquisition estate will also receive the additional benefits of cash payments of $750,000 over an 8-month period and the withdrawal of a claim of approximately $841,000 filed by one of the principals. These additional benefits would not otherwise have been available to the creditors if the assets and liabilities were not transferred to TNG Acquisitions and if TNG Services remained bankrupt.
The Order also provides that proofs of claim filed in connection with the bankruptcy of the Company shall stand in place and stead of the proofs of claim filed in connection with the bankruptcy of TNG Acquisition. Creditors who have filed proofs of claim in connection with the bankruptcy or proposal of TNG Services Inc., formerly known as NexInnovations Inc., need not file further proofs of claim in connection with the bankruptcy of TNG Acquisition.
The Order recognizes that the bankruptcy administration of TNG Acquisition is effectively a continuation of the bankruptcy administration of TNG Services, accordingly, the Order provides for the following:
- The assets and liabilities that were in the TNG Services estate are now in TNG Acquisition estate;
- No new notices need to be sent to the creditors of TNG Acquisition advising of the bankruptcy;
- No new notices need to be published in newspapers; and
- The Inspectors appointed by the creditors in the TNG Services estate will continue to act as the Inspectors in the TNG Acquisition estate.
The First Meeting of Creditors of TNG Acquisition will be held at the offices of the Trustee, 150 York Street, Suite 1600, Toronto Ontario at 2:00 p.m. February 19, 2009. Creditors are invited to attend the meeting, although the meeting will be just procedural in nature as the Court has already ordered that the Inspectors of TNG Services will continue to act as the Inspectors in the TNG Acquisition estate.
As stated above, the Court also ordered the proofs of claim filed in the TNG Services estate will be deemed to have been filed in the TNG Acquisition estate; accordingly, creditors who have filed proofs of claim in connection with the bankruptcy or proposal of TNG Services Inc., formerly known as NexInnovations Inc., need not file further proofs of claim in connection with the bankruptcy of TNG Acquisition. A proof of claim form for the TNG Acquisition estate is linked below in the event a creditor has not yet filed a proof of claim.
Please be advised that all employees from Ontario that wish to file a Proof of Claim should contact Shirley Heaslip at the Ministry of Labour to confirm whether the Ministry of Labour will be filing a claim on their behalf. The number for Shirley Heaslip is 1.800.267.1916.
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.
Court Orders and Endorsements