Current Insolvency Proceedings

Insolvency and restructuring matters require clear communication with creditors and stakeholders. The latest information relating to current proceedings are posted here as soon as they are available.

669699 N.B. Ltd., MP Atlantic Wood Ltd. and New Future Lumber Ltd. (collectively, the "Applicants")

UPDATE APRIL 11, 2018 - As noted in the narrative below this bold section, a hearing was held today to consider the Monitor's motion for directions and RBC's motion for the appointment of an Interim Receiver. From the bench, to be followed by a signed written order(s), the Court ordered:

that the time for service of RBC's motion was abridged and the motion was properly before the Court;
that the stay set out in the Initial Order and subsequent extension orders is lifted;
that Grant Thornton Limited is appointed as Interim Receiver over the assets and undertaking of the Applicants; and
that leave is granted to bring an application before the Court to have Grant Thornton Limited appointed as a Receiver over the assets and undertaking of the Applicants.

The Interim Receivership Order, dated April 12, 2018, is posted below.

Notwithstanding the lifting of the stay in the CCAA proceeding, a new stay of proceedings has been created in the Interim Receiver Order. At this time, subject to passing of our accounts and obtaining our discharge, our role as Monitor is substantially completed.

All future inquiries regarding the Applicants' property, claims against the Applicants' and/or their property and the Interim Receivership proceedings should be directed to:

Grant Thornton Limited

Suite 506, 6940 Mumford Road, Halifax, NS, B3L 0B7

Attn: Mr. Peter Wedlake, Senior Vice President

Tel: (902) 482-7242

Fax: (902) 453-9257,

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On November 29, 2017, the Applicants sought and obtained from the Court of Queen Bench of New Brunswick (the “Court”) an initial order (the “Initial Order”) under the Companies’ Creditors Arrangement Act, R.S.C. 1985, c. C-36, as amended (the “CCAA”). A Charging Order was granted at the same time giving priority to DIP Lender advances of $225,000 and for an Administration Charge in the amount of $100,000.

Powell Associates was appointed by the Court as the Monitor in these CCAA proceedings.

At the Court hearing of December 19, 2017, the Court granted the Applicants an extension of the stay of proceedings to January 31, 2018. The Court also ordered the sealing of Exhibits "L" and "M" of the First Report of the Monitor dated December 15, 2017. No changes were made to the amount of the approved DIP Lender's Charge nor the Administration Charge which continue to be $225,000 and $100,000, respectively.

At the Court hearing of January 31, 2018, the Court granted the Applicants an extension of the stay of proceedings to April 23, 2018. No changes were made to the amount of the approved DIP Lender's Charge nor the Administration Charge which continue to be $225,000 and $100,000, respectively.

On March 26, 2018, the Monitor filed a Motion seeking directions regarding Monitor's concerns over (i) the Applicants' ability to formulate a viable Plan to present at the hearing scheduled for April 23, 2018, and (ii) the short term financial viability of the Applicants. The motion is scheduled to be heard on April 11, 2018. On March 29, 2018, the Monitor filed its Third Report to advise the Court of a Material Adverse Change.

On April 5, 2018, RBC filed a motion seeking to lift the CCAA stay of proceedings and for the Court appointment of an interim receiver. That motion is scheduled to be heard also on April 11, 2018.