Gyroscopic Inc.

 

Bankruptcy

Gyroscopic Inc. (“Gyroscopic“) filed an assignment in bankruptcy on September 22, 2023, and Baigel Corp., Licensed Insolvency Trustee (“Baigel“), was appointed as trustee of the estate of the bankrupt by the Official Receiver.

Receivership

On February 26, 2024, 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 as receiver (in such capacity, the “Receiver“) of all the assets, properties, and undertakings (the “Property“) of Gyroscopic, pursuant to section 243(1) of the Bankruptcy and Insolvency Act (the “BIA“) and section 101 of the Courts of Justice Act. The application for the appointment of the Receiver was made by BACI Gyroscopic GP Inc., in its capacity as general partner of BACI Gyroscopic Limited Partnership (in such capacity, the “Applicant“).

The Sale Process

Also on February 26, 2024, the Court issued an Order (the “Sale Process and Stalking Horse Approval Order“) that provided for, among other things, the approval of (1) a marketing and sale process (the “Sale Process“) for the Property of Gyroscopic, and (2) a stalking horse asset purchase agreement (the “Stalking Horse APA“) between the Receiver and BACI Gyroscopic GP Inc. (in such capacity, the “Stalking Horse Bidder“). The Sale Process, and bidding procedures thereof, is more fully described in the Pre-Filing Report of the proposed Receiver, dated February 21, 2024. A copy of the bidding procedures memorandum is included in the Sale Process and Stalking Horse Approval Order as Schedule “A”.

Parties interested in making inquiries or participating in the Sale Process were required to contact the Receiver to obtain a non-disclosure agreement and other details regarding the Sale Process and the Property for sale. Please note that the final date for submission of bids was 5:00 p.m. (Toronto time) on 2 April 2024.

The Sale Process concluded with no competing bids for the Property. The Receiver brought a motion, returnable May 3, 2024, for orders providing for, among other things,

  • the Court’s approval of the sale transaction contemplated by the Stalking Horse APA and the vesting of the sold assets in and to the Stalking Horse Bidder free and clear of any encumbrances (the “Approval and Vesting Order“); and
  • the Court’s approval of the Receiver’s fees and disbursements, the discharge of the Receiver subject to its completion of the remaining activities and the filing of a certificate with the Court, and other relief (the “Ancillary Relief and Discharge Order“).

Both the Approval and Vesting Order and the Ancillary Relief and Discharge Order were made by the Court, with copies of both available for viewing or download below.

Creditor/Stakeholder and Sale Process Inquiries

Inquiries of creditors and stakeholders and parties interested in the Sale Process may be directed to the attention of the following:

Mr. William Gertler, MBA, CIRP
Corporate Estate Associate
Tel: +1 (416) 224-4350 ext. 220
Email: gertler@baigel.ca

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

Court Orders and Endorsements

Application and Motion Materials

Service List

Bankruptcy Notices

Sale Process

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