R. Litz & Sons Company Limited

Notice of Intention to Make a Proposal

^{Page last updated: April 9, 2019}

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

On August 18, 2017, R. Litz & Sons Company Limited (“R.Litz” or the “Company”) filed a Notice of Intention to Make a Proposal (“NOI”) pursuant to Section 50.4(1) of the Bankruptcy and Insolvency Act (Canada) (“BIA”) and PricewaterhouseCoopers Inc., LIT (“PwC”) was named as the Licensed Insolvency Trustee under the NOI (the “Proposal Trustee”).

As a result of the filing of the NOI, all creditors are stayed from commencing or continuing any proceedings against the Company pursuant to the provision of the BIA (the “Stay Period”), subject to any extensions of the Stay Period that the Court may grant upon application by R. Litz.

Notice of the NOI and the Trustee’s appointment was mailed to all known creditors of R. Litz on August 25, 2017 as required under the BIA.

Status of the file as of July 20, 2018

On July 10, 2018, the Court issued a decision denying Peter Ramdath’s leave to appeal against the approval of the Amended Proposal.

Status of the file as of February 7, 2018

On February 9, 2018, Peter Ramdath filed a notice of appeal against the ruling approving the Amended Proposal.  

On February 1, 2018, the Court issued an order (the “Approval Order”) approving the Amended Proposal as filed.

Status of the file as of January 12, 2018

On January 11, 2018, the Proposal Trustee issued a notice of application for Court approval of the Amended Proposal (the “Hearing Notice”) to creditors who filed their claim with the Proposal Trustee, advising that an application will be made to the Court, at 10:00 a.m. on February 1, 2018 to approve the Amended Proposal of R. Litz, accepted by the creditors at the Creditors’ Meeting held on December 22, 2017. A copy of the Hearing Notice is available on the “Notices” page of this website.

Status of the file as of January 2, 2018

On December 22, 2017, R. Litz filed an amended proposal (the “Amended Proposal”) with the Trustee, which revised the defined terms of the Proposal and added a clause regarding the payment of Pension Claims (as defined in the Amended Proposal) to be paid by R. Litz outside of the Amended Proposal. The Amended Proposal did not alter the amount available for distribution to unsecured creditors of R. Litz.

On December 22, 2017, a meeting of creditors was held to consider and vote on the approval of the Amended Proposal filed by R. Litz. The requisite majority of creditors required to approve the Amended Proposal, pursuant to the provisions of the BIA, was obtained and the Amended Proposal was accepted by R. Litz’s creditors. As a result, the Trustee will apply to court for a hearing of the application for an approval of the Amended Proposal by the Court.

Status of the file as of December 13, 2017

The Notice of Proposal, the Proposal, the Trustee’s Report to Creditors on the Proposal, the Company’s Statement of Affairs (which includes a list of the creditors whose claims amount to $250 or more), a Proof of Claim Form, General Proxy and Voting Letter (the “Notice of Proposal”) were mailed by the Trustee on December 11, 2017 to all known creditors of the Company, pursuant to the provisions of the BIA.

A general meeting of the creditors (the “Creditors’ Meeting”) will be held at the Office of the Trustee at Richardson Building, 1 Lombard Place, Room 2324 (Red River) Winnipeg, Manitoba R3B 0X6 on the 22nd day of December, 2017 at 10:00 am (Central Standard Time), for the purpose of considering the Company’s Proposal.

The Proof of Claim form, General Proxy and Voting Letter intended to be used at the Creditors’ Meeting must be lodged with the Trustee prior to the commencement of the Creditors’ Meeting and should be forwarded to:

PricewaterhouseCoopers Inc., LIT
Licensed Insolvency Trustee of
R. Litz & Sons Company Limited
PwC Tower
18 York Street, Suite 2600
Toronto ON M5J 0B2
Attention: Tammy Muradova
Telephone: +1 416 863 1133
Facsimile: +1 416 814 3219
Email: cmt_processing@ca.pwc.com
 

Copies of the Notice of Proposal, Proof of Claim form, General Proxy and Voting Letter are posted on the “Claims Process/ Creditors’ Meeting” page of this website.

Status of the file as of November 27, 2017

On November 21, 2017, the Court issued an order (the “The Third Extension Order”) which, among other things, extended the Stay Period to December 8, 2017, by which a Proposal may be filed on behalf of the Company.

Status of the file as of November 17, 2017

On November 17, 2017 the Proposal Trustee filed its Third Report (the “Third Report”) with the Court to provide the Court with information in respect of:

a)    the business activities of the Company since the filing of the second report of the Proposal Trustee (the “Second Report”), including operations and dealings with suppliers, creditors and employees;

b)    the activities of the Proposal Trustee since the filing of the Second Report, including the completion of duties prescribed pursuant to the BIA; and

c)     Proposal Trustee's comments to the Court related to the Company’s notice of motion to be heard on November 21, 2017 seeking the granting of an order for, among other things, an extension of time within which the Proposal Trustee may file a proposal on behalf of the Company to December 8, 2017.

Status of the file as of November 8, 2017

On October 30, 2017, the Court issued an order (the “The Second Extension Order”), which among other things, extending the Stay Period to November 21, 2017, by which a Proposal may be filed on behalf of the Company.

Status of file as of October 27, 2017

On October 27, 2017, the Proposal Trustee filed its second report (the “Second Report”) with the Court to provide the Court with information in respect of:

a)   the business activities of the Company since the filing of the First Report, including operations and dealings with suppliers, creditors and employees;

b)   the activities of the Proposal Trustee since the filing of the First Report, including the completion of duties prescribed pursuant to the BIA; and

c)   to provide the Court with the Proposal Trustee's comments related to the Company’s notice of motion to be heard on October 30, 2017 seeking the granting of an order for among other things: extending the time within which a Proposal  may be filed on behalf of the Company to December 15, 2017.

Status of the file as of October 26, 2017

On October 26, 2017, the R. Litz filed a motion with the Court for an order to appoint PwC as interim receiver of the Property (as defined in Schedule “A” to the motion) of the Company.

The Motion was heard on October 27, 2017.

Status of file as of October 25, 2017

On October 25, 2017, the Company filed a motion with the Court for an order to, among other things, extend the Stay Period to December 15, 2017.

The motion was heard on October 30, 2017.

Status of file as of September 29, 2017

On September 13, 2017, the Court of Queen’s Bench In Bankruptcy, Winnipeg Centre (the “Court”) issued an order (the “The First Extension Order”), which among other things,

a)    extending the Stay Period to October 31, 2017, by which a proposal (the “Proposal”) may be filed;

b)    authorized R. Litz to sell or otherwise dispose of its assets outside the ordinary course of business as may be agreed by R. Litz, the Proposal Trustee, and such secured creditors who hold security on such assets; and

c)    authorized R.Litz to surrender control of and return equipment subject to lease or finance arrangements, to the lessor or financier thereof, in consideration of (i) the reduction of related lease or finance payment obligations of the Company, and/or (ii) other accommodations, if any, in relation to such lease or finance arrangements, and/or (iii) proceeds, outside the ordinary course of business, as may be agreed by the Company, the Proposal Trustee, and such secured creditors who hold security on such equipment.

Status of file as of September 11, 2017

On September 11, 2017, the Proposal Trustee filed its first report (the “First Report”) with the Court to provide the Court with information in respect of:

a)   the business activities of the Company since the filing of the NOI, including operations and dealings with suppliers, creditors and employees;

b)   the activities of the Proposal Trustee since the filing of the NOIs, including the completion of duties prescribed pursuant to the BIA; and,

c)   to provide the Court with the Proposal Trustee's comments related to the Company’s notice of motion to be heard on September 13, 2017 seeking the granting of an order for among other things: (i) authorization that the Company may sell, return or dispose of the Surplus Assets (as defined in the First Report) outside the ordinary course of business as may be agreed by the Company with the assistance of the Proposal Trustee and the secured creditors who hold security on the Surplus Assets; and, (ii) an extension of time within which the Proposal Trustee may file a proposal on behalf of the Company to 11:59 p.m. October 31, 2017.

Also, on September 11, 2017, the Company filed a motion with the Court of Queen’s Bench in Bankruptcy, Winnipeg Centre (the “Court”) for an order to, among other things:

a)    extend the Stay Period to October 31, 2017, by which a proposal (the “Proposal”) may be filed;

b)    authorize R. Litz to sell or otherwise dispose of its assets outside the ordinary course of business as may be agreed by R. Litz, the Proposal Trustee, and such secured creditors who hold security on such assets; and

c)    authorize R.Litz to surrender control of and return equipment subject to lease or finance arrangements, to the lessor or financier thereof, in consideration of (i) the reduction of related lease or finance payment obligations of the Company, and/or (ii) other accommodations, if any, in relation to such lease or finance arrangements, and/or (iii) proceeds, outside the ordinary course of business, as may be agreed by the Company, the Proposal Trustee, and such secured creditors who hold security on such equipment.

The motion was heard on September 13, 2017.

This Web site will be updated as information becomes available.

For more information, please contact: Andy Lightstone, Telephone: +1 416 941 8383 ext 13617, Email.