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Universal Mould & Die Co. Ltd.

The Court-Appointed Interim Receivership of Universal Mould & Die Co. Ltd.

This page is for information purposes only. You should consult your professional advisor if you have any questions or are uncertain as to your rights and obligations.

A. Farber & Partners Inc. Appointment

On October 25, 2007, Universal Mould & Die Co. Ltd. (“Universal” or the “Company”) filed a Notice of Intention to Make a Proposal pursuant to Section 50.4 of the Bankruptcy & Insolvency Act (“BIA”). A. Farber & Partners Inc. (“Farber”) was appointed Trustee in the Proposal of the Company.

On November 19, 2007, by an Order of the Honourable Mr. Justice Spence (the “Appointment Order”), Farber was also appointed as Interim Receiver of al of Universal’s current and future assets, undertaking and properties of every nature and kind whatsoever, and wherever situate including all proceeds thereof (the “Property”) with authority limited to the provisions of the Order, and for greater certainty not to manage or operate the business and undertaking of the Company without further order of the Court. The Interim Receiver was appointed to market and sell the Property, including advertising and soliciting offers in respect of the Property and to negotiate such terms and conditions of sale.

Status of File as at February 3, 2009

  • By Order of the Honourable Justice Campbell dated November 23, 2007, the time for the making of a BIA Proposal was extended to January 8, 2008. The Company did not file a Proposal on or before January 8, 2008 resulting in an automatic deemed bankruptcy. Farber was appointed the Trustee in Bankruptcy (“Bankruptcy Trustee”).
  • By Order of the Honourable Mr. Justice Lederman dated December 20, 2007 (the “Expansion Order”), the Interim Receiver’s powers were expanded to permit it to take possession of and deal with all of the property of the Company.
  • By Order of the Honourable Mr. Justice Lederman dated December 20, 2007 (the “Vesting Order”), the Interim Receiver was authorized to enter into an asset purchase agreement (the “APA”) to sell certain of the assets of the Company.
  • By Order of the Honourable Mr. Justice Lederman dated February 4, 2008 (the “Settlement Order”), the Interim Receiver was authorized to enter into Minutes of Settlement for the sale of certain assets described as a Gun Drill to Dynamic International Inc.
  • By Order of the Honourable Madam Justice Hoy dated March 7, 2008 (the “Interim Disbursement Order”), the Interim Receiver was authorized to make certain interim disbursements of proceeds and receipts to certain secured creditors of the Company.
  • On January 28, 2009, the Court granted an Order for distribution of funds representing amounts outstanding from Universal to secured creditors, Bank of Montreal, HSBC Bank Canada, LiftCapital Corporation and a portion of the secured debt owing to Thomas Roselli which totaled $629,791.67 for all those secured parties.
  • The Court adjourned the January 28, 2009 motion concerning payment of the consulting fee in connection with the SRED claim, approval of the activities and fees of the Interim Receiver and those of its counsel, and discharge of the Interim Receiver to February 23, 2009 at 10:00am at 330 University Avenue, 8th Floor, Toronto. The court directed that, in the meantime, the Trustee send a report to unsecured creditors to ascertain whether the creditors wish to take a position in respect of this matter.

Reports of Receiver

Orders