3 Sixty Secure Corp. and 3 Sixty Risk Solutions Ltd. – in Receivership

 

Case Updates

On September 13, 2021, on application by Pillar Capital Corp., the Ontario Superior Court of Justice (Commercial List) (the “Court“) issued an order (the “Receivership Order“) providing for, among other things, the appointment of Baigel Corp. as receiver and manager (in such capacity, the “Receiver“) of all the assets, properties, and undertakings (the “Property“) of 3 Sixty Secure Corp. (“Secure Corp“) and 3 Sixty Risk Solutions Ltd. (“Risk Solutions” and, together with Secure Corp, the “3 Sixty Group“), pursuant to section 243(1) of the Bankruptcy and Insolvency Act and section 101 of the Courts of Justice Act. A copy of the Receivership Order is posted below.

Periodic updates and documents will be posted to this website in accordance with the Court’s E-Service Protocol.

On November 9, 2021, the Court made an order (the “Sale Processes Approval Order“) that provided for, among other things, the Court’s approval of sale processes for:

  • the real property known as 21 McDonald Street, Smiths Falls, Ontario;
  • the real property known as Unit 12, 83 Little Bridge Street, Almonte, Ontario;
  • the real property known as Unit 10, 83 Little Bridge Street, Almonte, Ontario;
  • the fleet of motor vehicles, equipment, furniture and other chattels of the 3 Sixty Group; and
  • firearms belonging to the 3 Sixty Group that were in the possession and/or control of the Receiver.

Also on November 9, 2021, the Court made an order (the “Ancillary Relief Order“) that provided for, among other things, the Court’s approval of:

  • a process for addressing unclaimed third-party property;
  • the Receiver’s payment of a retainer for the administration of a bankruptcy of Secure Corp; and
  • the Receiver’s First Report and the activities of the Receiver described therein.

As per the Endorsement of the Honourable Justice Penny on November 9, 2021, the Court was scheduled to hear a motion by the Receiver on December 17, 2021 at 9:30 a.m. The Receiver did not, however, make a motion and the scheduled hearing was canceled.

On December 6, 2021, Secure Corp made an assignment in bankruptcy and Baigel Corp. was appointed by the Official Receiver as trustee (in such capacity, the “Trustee“) of Secure Corp’s bankrupt estate. The first meeting of creditors in the bankruptcy of Secure Corp was held on January 6, 2022 and the appointment of Baigel Corp. as Trustee of Secure Corp’s bankrupt estate was affirmed by the creditors.

On February 23, 2022, the Court issued an order amending and restating the Sale Process Approval Order (the “Amended and Restated Sale Process Approval Order“). The Amended and Restated Sale Process Approval Order provided for, among other things, updated language to the order to ensure that priorities are preserved for secured creditors against the net cash proceeds of the assets sold at auction, including after personal property security registrations are discharged.

On May 10, 2022, the Court made an order (the “First Almonte AVO“) approving, among other things, the sale transaction for the commercial condominium unit municipally known as 10-83 Little Bridge Street, Almonte, Ontario (the “First Almonte Condo“), and vesting in the purchaser the Receiver’s right, title and interest, if any, in and to the First Almonte Condo free and clear of all encumbrances.

Also on May 10, 2022, the Court made a second order (the “Additional Assets AVO“) approving, among other things, the sales by public auction of one motor vehicle and several items of computer equipment (the “Additional Assets“), and vesting in their respective purchasers the Receiver’s right, title and interest, if any, in and to the Additional Assets.

On May 25, 2022, the Court made an order (the “First Interim Distribution Order“) for, among other things, an interim distribution of funds to various priority claimants and secured creditors, approval of the Receiver’s activities, and approval of the professional fees and disbursements of the Receiver and its legal counsel.

On July 22, 2022, the Court made an order (the “Second Almonte AVO“) approving, among other things, (a) the sale transaction for the commercial condominium municipally known as 12-83 Little Bridge Street, Almonte, Ontario (the “Second Almonte Condo“), (b) the vesting in the purchaser of the Receiver’s right, title and interest, if any, in and to the Second Almonte Condo free and clear of all encumbrances, and (c) the proposed interim distribution of the net proceeds of the sale of the Second Almonte Condo.

On March 6, 2023, the Court made an order (the “Smiths Falls AVO“) approving, among other things, (a) the sale transaction for the real property known as 21 McDonald Avenue (also known as 18 Rideau St. N.), Smiths Falls, Ontario (the “Smiths Falls Property“), (b) the vesting in the purchaser of the Receiver’s right, title and interest, if any, in and to the Smiths Falls Property free and clear of all encumbrances, and (c) the proposed interim distribution of the net proceeds from the sale of the Smiths Falls Property and other Property realized by the Receiver.

On April 20, 2023, the Court made an order (the “FSS AVO“) approving, among other things, (a) the sale transaction for specific client service contracts of Secure Corp (the “FSS Contracts“), and (b) the vesting in the purchaser of the Receiver’s right, title and interest, if any, in and to the FSS Contracts free and clear of all encumbrances.

Also on April 20, 2023, the Court made an order (the “Second Ancillary Order“) approving, among other things, (a) the Receiver’s Notice to Prove Claim, the receivership Claims Bar Date of April 3, 2023, and the Claims Notice List (with each capitalized term being defined in the Ancillary Order), (b) the Receiver’s interim statement of receipts and disbursements as of March 31, 2023, (c) the interim professional fees and disbursements of the Receiver and its counsel, and (d) an interim distribution of funds contingent on the closing of the sale of the FSS Contracts.

Please be advised that all documents posted below are for information purposes to stakeholders and do not constitute advice.

Inquiries

Inquiries of stakeholders may be directed to the attention of the Receiver/Trustee by email at 3SixtySecureCorp@baigel.ca.

Wage Earner Protection Program (WEPP) Information

*Please note that prior to September 28, 2021, this page inadvertently and erroneously listed the Estate ID as 31-165772. Please note the correct Estate ID above.

Court Orders and Endorsements

Application and Motion Materials

Notice and Statement of Receiver

Service List

Bankruptcy of 3 Sixty Secure Corp.

Advisor Portal Login