1876804 Ontario Inc. operating as the Concept Lighting Group (the “Company“) filed an Notice of Intention to Make a Proposal on April 7, 2019. Baigel Corp., Licensed Insolvency Trustee (“Trustee“) consented to act in the matter of the Proposal that will be made to creditors. The notice and the associated documents linked below are provided for information purposes to stakeholders and do not constitute advice.
Pursuant to the provisions of Section 69(1) of the Bankruptcy and Insolvency Act (the “BIA”), creditors have no remedy against the Company’s property and must not commence or continue all collection actions against the Company, unless an exception has been provided for in law, or a court of competent jurisdiction orders otherwise.
On May 3, 2019, the Company obtained a 45 day extension of time to file a Proposal to its creditors from the Superior Court of Justice, Ontario.
On June 19, 2019, the Company obtained a further 45 day extension of time to file a Proposal to its creditors from the Superior Court of Justice, Ontario. In addition, the Court approved the sale of the Company’s store in Burlington, Ontario.
The Company lodged a Proposal with the Trustee and this was filed with the Office of the Superintendent of Bankruptcy on August 1, 2019. A meeting of creditors to consider the Proposal was called for August 21, 2019 at 11.00 a.m. and was held at the offices of the Trustee at
4711 Yonge Street, Suite 1000
Toronto, ON, M2N 6K8
The following documents are available below:
- Proposal dated July 31, 2019;
- Report of the Trustee on the Financial Position of the Company and on the
- Statement of the Company’s Assets and Liabilities;
- Proof of Claim
- Voting Letter.
The meeting of creditors to consider the Proposal was held on August 21, 2019 and the creditors approved the Proposal. The Trustee made an application to Court for a hearing to approve the Proposal which took place on September 24, 2019 at 10.00 a.m. The Notice to Creditors is attached at Form 40.1 below.
On September 24, 2019 the Trustee attended court in order to seek approval of the Proposal. The Master hearing the motion expressed concerns regarding the implementation of paragraphs 4.6 and parts of 6.3.
The Master declined to strike the paragraphs of concern. As such, the Company undertook a practical solution and amended the Proposal by striking the paragraphs that concerned the Master. The amendments to the Proposal submitted by the Company on July 31, 2019 consist of the deletion of section 4.6 and the last paragraph of section 6.3. The sections relate to security for the provision of the Proposal Default Fund and a certain release of liability. The Company struck those paragraphs and lodged the Amended Proposal with the Trustee on September 25, 2019. Notwithstanding the creditors’ approval of the Proposal filed on July 31, 2019, the Trustee is therefore obligated to convene a second meeting of creditors in order that the creditors have an opportunity to vote on the amendments to the Proposal.
Notice was sent to all known and proven creditors, as per the Bankruptcy and Insolvency General Rules, Rule 6 and the Bankruptcy and Insolvency Act, s.104 and ss. 51 and 52, as appropriate for a second meeting to consider an Amended Proposal. The meeting was held at 10.00 a.m. on October 8, 2019 at the Trustee’s office at 4711 Yonge Street, Suite 1000, Toronto, ON, M2N 6K8.
The meeting of creditors to consider the Amended Proposal was held on October 8, 2019 and the creditors approved the Proposal. The Trustee made an application to Court for a hearing to approve the Proposal which take place on October 29, 2019 at 10.00 a.m. at 393 University Avenue, Toronto, Ontario. The Notice to Creditors is attached at Form 40.1 below.
On October 29, 2019 the Trustee attended court in order to seek approval of the Amended Proposal. The Court granted approval of the Amended Proposal and the Master’s endorsement is attached below. .
Please click on the links below for access to the relevant documents.