COURT-APPOINTED RECEIVERSHIP PROCEEDINGS
On November 14, 2014, Crate Marine Sales Limited, F.S. Crate & Sons Limited, 1330732 Ontario Limited, 1328559 Ontario Limited and 1282648 Ontario Limited (collectively “Crate Marine”) filed Notices of Intention To Make A Proposal pursuant to the provisions of s. 50.4(1) of the Bankruptcy and Insolvency Act (the “BIA”). The Proposal Trustee for Crate Marine was Dodick Landau Inc.
Subsequently, one of the major secured creditors, Crawmet Corp. applied to Court for the appointment of a receiver to carry out a Court-supervised sale process for the benefit of all stakeholders of Crate Marine.
At the November 21, 2014 hearing, the application for the appointment of a receiver was adjourned to December 1, 2014. In the interim, the Court appointed A. Farber & Partners Inc. as the Court-Appointed Interim Receiver (the “IR”) of Crate Marine pursuant to the November 21, 2014 Order of the Honourable Mr. Justice Penny (the “Appointment Order”). Copies of the Appointment Order and the Endorsement are linked below.
On December 8, 2014, the Court issued the Order of Justice Newbould dated December 8, 2014 (appointing Receiver) terminating the NOI proceedings, substituting the Proposal Trustee with Farber as the Trustee in Bankruptcy (the "Trustee") and appointing Farber as the Court-appointed receiver of Crate Marine (the “Receiver”).
The Receiver has entered into an agreement of purchase and sale (the “Stalking Horse Offer”) with a stalking horse bidder (the “SHB”) which was subject to Court approval on February 13, 2015. The Endorsement of the Honourable Mr. Justice Pattillo dated February 18, 2015 is linked below authorizing the Receiver to conduct the Sales Process as set out in the motion material.
The SHB was the successful bid and the Receiver closed a sale of Crate Marine's assets to the SHB on April 10, 2015.
The Receiver notes that the Stalking Horse Offer specifically excludes any customer boats in the Property Claim Procedure (discussed below) that may not yet have been fully resolved before the closing of the Stalking Horse Offer; accordingly, those boats will remain under the Receiver’s supervision.
The SHB is operating the marina business for the 2015 boating season.
Employees and WEPP
The Receiver has issued letters to the former employees and to Service Canada to allow employees to register with the Wage Earners’ Protection Program (“WEPP”). Employees must contact and file with WEPP by February 2, 2015. As noted in the letters to the employees, this can be done by phone or online at:
WEPP is administered by Services Canada so any questions should be directly to them.
Third Party Property Including Customer Boats
The Receiver has became aware that there were competing claims to certain of the boats owned by Crate Marine and/or owned by customers and currently on the Crate Marine premises. The Receiver's Second Report, linked below, sought and obtained the approval of the Court to run a Proof of Property Claim process to identify and resolve any such potential disputes. A copy of the Order of Justice Penny approving Property Claims Procedure dated December 23, 2014 (the "Property Claims Procedure Order") is linked below.
As set out in the Property Claims Procedure Order, all Claimants having a Property Claim (which includes owners of boats stored on Crate Marine premises) were to complete a Proof of Property claim (included in the Proof of Property Claim Document Package linked below) and submit it to the Receiver no later than January 30, 2015. Failure to file a Proof of Property Claim by that time resulted in late filed Property Claims being barred.
The Receiver has received numerous claims before and after the January 30, 2015 Claims Bar. The Receiver's activities and planned disposition of the claims received as of the date of the Seventh Report are set out below. On March 31, 2015, the Receiver obtained an Order approving the Seventh Report. The Receiver continues to administer the disputed claims and unclaimed boats.
As included in the Seventh Report, the Receiver has approved approximately 663 proof of property claims. Prior to the boats being physically released, customers will be required to settle any accounts with the SHB for any services and storage provided by Crate Marine and/or the Receiver up to and including the date of the sale of the Crate Marine assets to the SHB (April 10, 2015) and for any services provided by the SHB from April 11, 2015 onward.
On December 8, 2014, the Court issued the Order of Justice Newbould dated December 8, 2014 (appointing Receiver) terminating the NOI proceedings, substituting the Proposal Trustee with Farber as the Trustee in Bankruptcy (the “Trustee”) and appointing Farber as the Court-appointed receiver of Crate Marine (the “Receiver”).
The first meetings of creditors were held on January 20, 2015. A copy of the Trustee’s Preliminary Report presented at the meetings is linked below.
Sales Process Documents
Proof of Property Claim Document Package
1. Appointment of Receiver
2. Property Claims Procedure
3. Discharge of Interim Receiver
4. Borrowing Limits Amending Order
5. Endorsement re 50' Marquis Boat
6. Certificate of Pending Litigation on Adjoining Properties
- Endorsement of Justice Newbould re Certificate of Pending Litigation dated January 14, 2015
7. Certificate of Pending Litigation re 14 highland
8. Sales Process
- Order of Justice Pattillo dated February 18, 2015 (Advice and Directors - Stalking Horse Agreement)
- Order of Justice Pattillo dated February 18, 2015 (Stalking Horse and Sales Process)
- Endorsement of Justice Pattillo dated February 18, 2015 (Stalking Horse)
9. Insurance Proceeds Preservation Order
10. Borrowing Limits Amending Order
11. Bankruptcy Applications
12. March 17, 2015 - Settling form of Order
13. Motion for Preservation and Return of Funds, Disclosure of Documents and Contempt
14. Motion to Approve Property Claims Procedure
- Endorsement of Justice Conway dated March 31, 2015 (re Claims Order)
15. Motion to Approve the Sale Transaction
16. Motion Regarding Bankruptcy Applications
17. Motion Regarding Belleville Travelift
18. Motion Regarding Lagoon City Property Claims and Landlord Issues
19. Motion Regarding Further Claims Order and Receiver's Tenth Report
20. Motion Regarding Marko Lands and Wynhurst Road Lands and Mac Ave Lands
Receiver's First Report
Receiver's Second Report
Receivers Third Report
Receiver's Fourth Report
Receiver's Fifth Report
Receiver's Sixth Report
Receiver's Seventh Report
Receiver's Eighth Report
Receiver's Ninth Report
Receiver's Tenth Report
Receiver and Trustee Motion Regarding Second Report
Marquis Yachts Application - adjourned to March 9, 2015
Motion Regarding Certificate of Pending Litigation - January 14, 2015
Motion Regarding Certificate of Pending Litigation - January 30, 2015
Motion Regarding Stalking Horse Agreement and Sales Process - February 13, 2015
Bankruptcy Applications (opposed) (scheduling hearing April 27, 2015)
Motion Regarding Receiver's Borrowing Cap Increase and Fee Approval - March 13, 2015
Motion Regarding Insurance Proceeds and Contempt of Court Application - March 20, 2015
Motion Regarding Approval of Agreement of Purchase and Sale and Vesting Order - March 31, 2015
Motion for Approval of Proof of Property Process Activities - March 31, 2015
Motion for Advice and Directions re Travelift in Belleville - May 13, 2015
Motion for Advice and Directions re Property Claims at Lagoon City
Motion Regarding Lagoon City Occupation Rent
Motion Regarding Cesaroni Security (Adjourned to August 27, 2015)
Motion Regarding Receiver's Final Report and Discharge Application (returnable October 31, 2016)
NOTICE OF INTENT TO MAKE A PROPOSAL PROCESS AND INTERIM RECEIVERSHIP
Court DocumentsMotion Record dated November 21, 2014 - Part 2
Reports of the Proposal Trustee
Reports of the Interim Receiver