pwc
NOTICE AND STATEMENT OF THE RECEIVER (Pursuant to subsection 245(1) and 246(1) of the Bankruptcy and Insolvency Act) IN THE MATFER OF THE RECEIVERSHIP OF THE PROPERTY OF OIav Haavaldsrud Timber Company Limited in the Township of Hornepayne, in the Province of Ontario. The Receiver gives notice and declares that: 1.
On April 11, 2016, pursuant to an order (the "Receivership Order") of the Ontario Superior Court of Justice (Commercial List) (the "Court"), PricewaterhouseCoopers Inc. was appointed receiver and manager (the "Receiver"), without security, of all the assets, undertakings and properties (the "Property") of Olav Haavaldsrud Timber Company Limited ("OHT" or the "Company") pursuant to section 243 (1) of the Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, as amended (the "BIA") and section 101 of the Courts of Justice Act, R.S.O. 1990, c. C.43, as amended.
2. The Receivership Order was granted pursuant to an application made by Her Majesty the Queen in Right of Ontario, as represented by the Minister of Finance (the "MOF"), pursuant to security agreements (the "Security") between OHT and Nexcap Finance Corporation (the "Nexcap"), which were guaranteed by MOF. 3. The Security granted by OHT in favour of Nexcap, included among other things: (a) a general security agreement dated December 19, 2011 (the "GSA"), and (b) a charge/mortgage of real property in the principal amount of $10,000,000 (the "Mortgage") over a sawmill registered March 8, 2012 as instrument number AL99508. 4. The repayment of OHT's indebtedness under the credit facility with Nexcap was guaranteed by the MOF pursuant to a guarantee agreement date August 26, 2011 (the "Guarantee"). The Guarantee was given pursuant to the Ontario Forest Sector Loan
PricewaterhouseCoopers Inc. PwC Tower, 18 York Street, Suite 2600, Toronto, Ontario, Canada M5J oB2 T: +1 844 6871783 Direct F: +1 416 814 3219, www.pwc.com/ca
pwc Guarantee Programme. On December 2, 2015, Nexcap demanded repayment of the indebtedness owing by OHT to Nexcap. On December 10, 2015 Nexcap delivered, among other things, a notice of intention to enforce its security pursuant to section 244 of the BIA. Subsequently, on December 22, 2015, Nexcap demanded payment upon the Guarantee. On March ii, 2016, MOF honoured the Guarantee and satisfied OHT's obligations to Nexcap. Pursuant to the Guarantee, MOF is subrogated to all rights of Nexcap under Nexcap's Security with OHT. . The primary business of OHT was the operation of a sawmill (the "Sawmill") located at 2 Becker Road, Hornepayne, Ontario. The Sawmill ceased operations on November 27, 2015, prior to the date of the Receivership Order, at which time OHT laid off the majority of its employees due to its ongoing financial losses. 6. The Sawmill is currently being maintained in a shutdown mode by a small number of OHT's employees. 7. On April 11, 2016, the Receiver took possession of the Company's Property, which primarily consisted of:
Assets
Estimated Book Value as at April 11, 2016 - $
Cash Accounts Receivable Due from Related Parties Inventory Prepaid Assets Fixed Assets (net) Investment in Related Party Total Assets
8 737,607
,793,063 1,664,422
48,779 15,739,130 1 21,983,010
Note: These amounts represent the book value of the Company's assets pursuant to the Company's books and records as of April 11, 2016 and do not necessarily represent the sale or liquidation value of the Company's assets. 8. The following information relates to the receivership: (a)
Address of the head office of the Company: 2 Becker Road
2
pwc Hornepayne, ON P0M iZo (b)
Principal line of business: The former operation of a sawmill included timber harvesting, reforestation, forest management, as well as manufacture, sale and distribution of structural grade dimension lumber.
(c)
Locations of business: 2 Becker Road Hornepayne ON, PoM iZo
(d)
Amounts owed as of April ii, 2016, by the Company, to each creditor who holds security on the Property of OHT, pursuant to the Company's books and records and registrations under the Personal Property Registry for Ontario are as follows:
Secured Creditors: STRY OF FINANCE INTEGRATED PRIVATE DEBT FUND III LP AR MECHANICAL AND ELECTRICAL CONTRACTORS LTD. CATERPILLAR FINANCIAL SERVICES LIMITED ELEMENT FINANCIAL CORPORATION FORD CREDIT CANADA LIMITED GE CANADA LEASING SERVICES COMPANY (9733115001) RS HORNEPAYNE SERVICE CENTER INC. JOHN DEERE FINANCIAL INC. KOMATSU INTERNATIONAL (CANADA) INC. NORTHERN ONTARIO GROW BONDS CORPORATION NORThERN ONTAFJO HERITAGE FUND CORPORATION READYQUIP SALES AND SERVICE LTD. TOYOTA CREDIT CANADA INC. EMPLOYEES PURSUANT TO SEC 81(4) OF THE BIA (Estimated Amount) TOTAL:
(e)
4,000,000 Unknown 10,681,507 164,972 208,818 69,917 iA, AO7
57,814 211,717
279,901 922,892 '18.318 358
The list of other creditors of the Company and the amount owed to each creditor, pursuant to information available from the Company's books and records, is set out in Schedule "A", which totals: Unsecured Creditors
(0
Amount Owed - $
S 23,790,460.62
The intended plan of action of the Receiver during the receivership proceedings, to the extent that such a plan has been determined, is to realize on the Property of the Company that is subject to the Receivership Order. On April ii, 2016, the Court granted an order authorizing the Receiver to commence a sale process to solicit interest in and opportunities for the sale of the Property of OHT (the
pwc 'OHT Sale Process"). As at the date of this report, the Receiver has commenced the OHT Sale Process. (g)
Contact person for Receiver: PricewaterhouseCoopers Inc. Receiver and Manager of Olav Haavaldsrud Timber Company Limited PwC Tower i8 York Street Suite 2600
Toronto ON, M5J oB2 Attention: Telephone: Facsimile:
Tammy Muradova 1(844) 687-1783 (416) 814-3219
9. Further information regarding the receivership proceedings and materials relating to the proceedings may be obtained from the Receiver's website at DATED at Toronto, this 21St day of April, 2016.
PricewaterhouseCoopers Inc. in its capacity as Receiver and Manager of Olav Haavaldsrud Timber Company Limited and not in its personal or corporate capacity'
Tracey Weaver Vice President
4
IN THE MA1TER OF THE RECEiVERSHIP OF THE PROPERTY OF Olav Haavaldsrud Timber Company Limited
Schedule "A"
List of Unsecured Creditors Name Unsecured Creditors: 1022259 ONT - NH 1022260 ONT - BH 1022261 ONT - WH
1164327 ONT. LTD. 0/A HVT CONTRACTING 1721027 ONTARIO INC. - BECKER CO-GENERATION PLANT 1814734 ONTARIO INC/ OLMA 2218796 ONT. INC. LACROIX 2233563 ONTARIO INC 0/A MAURICE WELDING 7963696 CANADA INC A & F KISTEMAKER LTD. A & L LOGGING A.M. LUDWIG SAW SHOP LTD. AARON TRANSPORTATION ACCLAIM ACKLANDS-GRAINGER INC. ACTION EXPRESS LTD AFFUTAGE ECONOMIQUE AGAT LABORATORIES ALL NORTH PLUMBING & HEATING ALS CANADA LTD ANDRE COMMUNICATIONS ANDRE LEMIEUX ANMAR MECHANICAL ARBOSSI BULK SYSTEMS AUTOLOG B & B AUTO SPORTS MARINE B & G INDUSTRIAL SERVICES B & M HAULING LTD. BDO DUNWOODY BELL CANADA BENOIT D'AMOURS ET FILS BETA FLUID POWER LTD. C/O LAIDLAW PACIOCCO DUMANSKI SPADAFORA & JOHNSON LLP, BARRISTERS AND SOLICiTORS BOUTS TRANSPORT INC BUREAU VER1TAS C & S ENTERPRISE CANADA CARTAGE SYSTEMS INC CANADA REVENUE AGENCY CANADIAN BEARINGS LTD CANDICE'S DELIVERY CARLO BIN CASSELS BROCK LAWYERS CHAP LEAU CREE FIRST NATION COLLEGE BOREAL COMACT EQUIPMENT INC
Amount Owed -
$
1,458,840.08 1,332,404.73 1,603,642.54 29,199.69 2,608,024.39 25,415.59 8,814.00 98,451.86 6,441.00 976,715.58 15,021.66 153,011.15 43,639.56 2,245.88 451.88 11,427.23 3,606.60 7,021.82 6,220.68 6,899.46 797.75 5,691.54 6,787,089.02 126,387.69 1,265.60 3,151.72 3,464.33 5,974.53 28,100.65 1,355.38 452.00 68,881.08 4,178.22 3,677.10 3,787.80 26,422.73 50,370.78 70,909.79 1,615.90 1,210.18 4,150.58 50,000.00 791.00 6,526.41
CONTINUOUS AIR SYSTEMS CPM RENTAL CUT TECHNOLOGIES CANADA DFG FORESTRY SERVICES DICKSON MANAGEMENT SERVICE DINGWELL'S MACHINERY DIRECTOR-FAMILY SUPPORT DK SPEC INC DRIVE TECH NORTH DUFOUR WASTERDISPOSAL/1499491 ON INC DUVAL'S CUTTING TOOLS DUVAL'S WELDING EXPERT GARAGE LTD. FILANE'S CANADIAN SPRING WATER FIRE 1 FIRST INSURANCE FUNDING OF CANADA FIRST RESOURCE MANAGEMENT GROUP FUTUR ELECTRONIQUE G. MCFEETERS ENTERPRISES INC. GARDEWINE NORTH GATEWAY GRAPHICS & RUBBERS STAMPS INC. GENIER BROS. TRUCKING LTD. GESTION FORESTIERE ABITIBI INC GIULIO GROSSI GOLDBELT TIRE & SUPPLY LTD. GRAND & TOY GREAT WEST LIFE ASSURANCE GREYHOUND COURIER EXPRESS GUNTER TRANSPORTATION H & S SUPPLIES H.B.L. MOVING & TRANSPORT HEARST COOP HEARST SEPTIC TANK HINCE TRANSPORT HITE SERVICES LTD. HOOD EQUIPMENT CANADA HORNEPAYNE HOME HARDWARE HORNEPAYNE SERVICE CENTRE HUNT TRUCKING LTD. HYDRO ONE NETWORKS INC. IDEAL TIRE IMAGE WEAR - MARK'S INGERSOLL RAND INTACT INSURANCE COMPANY INTERWRAP INC. J & E ELECTRIC JAMES CHYNOWETH TRUCKING & NATURAL STONE JASMIN PLANTE JC TRANSPORT JEANS DIESEL SHOP LTD. JOHNSON ENTERPRISES IN KELSEY TRAIL TRUCKING LTD.
14,183.23 241.90 3,130.10 11,034.45 1,717.60 12,818,16 389.00 16,237.88 13,736.80 4,116.25 22,263.51 1,358.83 65,017.65 2,091.00 1,412.50 50,633.12 24,903.35 2,806.47 2,507.03 1,250.59 2,708.22 327,473.52 27,100.51 1,175,286.00 21,912.01 1,464.45 26,498.81 553.70 4,267.56 2,139.53 639.55 3,500.94 1,751.50
106,162.37 17,861.54 4,972.00 869.52 86,232.29 56,188.68 330,449.85 20,101.10 203.39 4,379.88 792.14 43,334.30 11,638.32 2,026.27 1,600.00 4,700.12 10,489.12 4,751.80 20,504.04
KEY KNIFE INC LAJOIE BROS. CONTRACTING LAKEHEAD DIESEL & HYDRAULICS LEPINE TRUCKING LiVELY AUTO SUPPLY LYNDON LEASING MACAM EAU TOWING MAG ENGINEERING MANITOULIN TRANSPORT MARCEL TREPANIER/i18 0045 ONT LTD MASLACK SUPPLY MERIN FOREST MANAGEMENT METTLER TOLEDO INC MICHEL LEMIEUX CONSTRUCTION MICHEL MAILLE TRANSPORT MICRA-TECH INC MITCHELL'S APARTMENTS MONTREAL TRACTEUR MOTION CANADA MNRF DIRECTOR, FOREST TENURE AND ECONOMICS BRANCH MSC INDUSTRIAL SUPPLY MURRAY OK TIRE N & L TRANSPORT/NORM DURAND NAGAGAMI FOREST A/P NAWINGINOKTMA FOREST MANAGEMENT CORP NEXCAP FINANCE CORP. NORD-ASKI NORPREP LOGGING NORTH STAR LINEN NORTHERN ALLIED SUPPLY NORTHERN EMPLOYMENT SOLUTIONS NORTHERN LIGHTS FORD NORTHERN MAINTENANCE NORTRAX O.J. GRAPHIX INC. O.K. SIGNS ONTARIO NORTHLAND PELTON BROS. TRANSPORT PEPCO ENTERPRISES PINEHILL LUMBER PLC PRAXAIR PRIME ENVIRONMENTAL SERVICES INC PUROLATOR COURIER QUALITY AUTO SUPPLY R. G. LOGGING INC/GAGNE SLASHING RBC INVESTOR SERVICES RDB ENTERPRISES READYQUIP REVOLUTION BELTING RICK'S WELDING ROCK'S HUNT CAMP
68,650.88 4,864.18 1,943.58 14,126.46 695.07 654.62 723.20 618,682.00 7,336.00 1,101.75 12,315.64 4,322.70 7,758.90 10,515.93 7,283.33 652.01 500.00 2,698.98 11,992.36 1,302,735.23 9,985.22 13,728.13 58,693.60 619,835.77 23,151.53 16,950.00 217.50 121,100.53 24,564.86 16,374.49 15,142.00 3,574.00 23,972.85 99,213.21 409.43 813.60 23.74 49,642.83 112,512.46 1,105,80 69.44 10,285.65 254.25 3,891.13 2,534.13 9,153.00 451,706.95 1,993.32 101,351.26 15,125.05 7,586.91 5,785.76
RON GODARD TRUCKING INC RON LITTLE TRUCKING/53 1429 ONTARIO LTD ROYAL CANADIAN LEGION BR. #194 SAMUEL STRAPPING SYSTEMS SBA CANADA SDI SUPPLIES SERGE G & D REPAIR INC. SMS EQUIPMENT INC. STRAIGHT LINE PLUMBING STRATTON EQUIPMENT STRONGCO EQUIPMENT STRONGCO LIMITED PARTNERSHIP SUPERIOR PROPANE TALOS STEEL LTD. TBAYTEL TEMISKAMING PRINTING TERMAK WELDING THE JACKFISH JOURNAL THOMSON REUTERS THOR LOGGING INC. TIMMINS ELECTRIC MOTORS TITANIUM LOGISTICS INC. TITANIUM TRANSPORTATION GROUP INC TOROMONT TRANSPORT DEPOT ULTRA TRANSPORT INC UNITED SUPPLY GROUP USNR/KOCKUMS CANCAR CO. VERMEER CANADA INC VILLENEUVE CONSTRUCTION VIPOND FIRE PROTECTION WAJAX EQUIPMENT WEBER SUPPLY WELLONS CANADA CORP. WESTBURNE WHITE RIVER FOREST PRODUCTS WORKPLACE SAFETY NORTH WORPLACE SAFETY AND INSURANCE BOARD WYATT IMAGE SOLUTIONS XPRESS COMMERCIAL SERVICES, c/o CANADA CARTAGE Employees - Wage Deferral:
Employees - Other Amount: Total Unsecured Creditors:
2,471.72 11,626.77
6o.oo 12,439.13 338.16 20,149.45 17,613.09 2,958.07 970.39 615.03 7,140.20 1,542.24 39,600.04 1,335.00 313.01 3,179.64 390.00 713.05 556,91
6,764.26 2,875.85 4,181.00 255,268.97 5,957.35 2,195.21
263,847.27 60,628.08 23,095.87 46,863.73 4,584.21 1,740.20
203.88 25,094.94 12,099.08 9,220.82 276,775.36 2,629.48 7,850.59 2,642.61 4,341.26
519,137.87 Unknown 23,790,460.62
Employees List Last Name, First Name AGICH, KENNETH AGUADO, JOSE A. ALlAIRE, MARIUS ALLEN, DEREK BASTARACHE, HENRI BERUBE, BERTRAND
Amount Owed - $ Confidential Confidential Confidential Confidential Confidential Confidential
BERUBE, DANNY BERUBE, ERIC BERUBE, MARIO BERUBE, NORMAND BERUBE, REGINALD BIN, ANDREW BIN, CARLO BLAJS, PAT BOLDUC, ALAIN BOLDUC, YVES BOZOWSKYI, CHRIS BUCKNELL, DAVID BUCKNELL, KATIE BUCKNELL, KEVIN BUCKNELL, SHAWN BYCE, DAMON CARDIN, LOUISE CARON, REAL CARUNCHO, JOSE CHARRIER, JAYDON CLARKE, RAPHAEL CLAVEAU, LUCAS CLOUITIER, GRATIEN CLOUTIER, ANNIK CLOUTIER, CHRISTIAN COLBEY, JOHN DALCIN, GIORGIO DALCIN, JENNIFER D'ANJOU, GAETAN DAWSON, MARCIA DESORMEAUX, SUSAN DESROCHERS, DAVID DIXON, ALBERT DOIRON, DAVID DOIRON, JAMIE DOIRON, JASON DOIRON, PASCAL DOIRON, YVON DONALDSON, DALLAS DOYLE, JONATHAN DRURY, TYLER, DUCHARME, LINDA DUCHARME, RICHARD DUCHESNE, YVON DUMOULIN, HAYLIE ESTATE OF CHAUSSE, MICHEL ESTATE OF LANGIS SOUCY ESTATE OF SALONEN, GRANT FALARDEAU, MARC FALARDEAU, NATHALIE FRASER, THOMAS GAGLIARDI, CARLO
Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential
GAGLIARDI, MATTHEW GAGNE, DANY GAGNON, \TIATEUR GAUDREAU, DARREL GAUDREAU, DENNIS GAUDREAU, DUANE GAUDREAU, MICHEL GAUDREAU, TANNER GAUTHIER, MAURICE GENDRON, GILLES GERMAIN, FRANCIS GIGNAC, CODY GIONET, CHRISTIAN GIONET, JUSTICE GIONET, NORMAND GLAZER, CHARLES GLAZER, REMI GONZALEZ, SANTIAGO GOULET, ROBERT GRELOWSKI, JILL GROULX, ROBERT GUILLEMETI'E, GILBERT HAAVALDSRUD, BECKY HAAVALDSRUD, BURT HAAVALDSRUD, CARL HAAVALDSRUD, DAVID HAAVALDSRUD, DERRI HAAVALDSRUD, KEN HAAVALDSRUD, LAURA HAAVALDSRUD, PETER HAAVALDSRUD, ROBERT HAAVALDSRUD, TYLER HAAVALDSRUD, WALTER HANN, JOHN HOGG, WILLIAM JONCAS, REAL KISTEMAKER, BELINDA LAFRENIERE, MARIE LAFRENIERE, MICHEL LAGUILLONA, ANGEL LAROCHE, YVON LAROSE, MICHAEL LAVIGNE, MICHAEL LAVIGNE, RAYMOND LEE, AMY LEGRESLEY, ETHAN LIGHT, DIANE LITKEE, ANNE MARIE LUKE, JACK MALIGRANDA, HARVEY MALIGRANDA, TED MALLOTF, SHANE
Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential
MARTIN, ALFRED MARTIN, MITCHELL MAYHEW, HARRY MCLEOD, CARRIE ANNE MCLEOD, CORA LEE MEDEIROS, RAYMOND MEUNIER, ALFRED MEUNIER, MERVYN MICHELENA, JESUS MIDDLEBROOKS, KURT MILLER, KENNETH MITRON, NORMAND MOREAU, RICHARD MOYNIHAN, AUSTIN MUTSWAIRO, RUNGANO NABIGON, DOUGLAS NERON, YVAN OYFO, BRYAN OUELLEUE, DANIEL PELLETIER, DEREK RENDELL, DEIDRA ROTAR, SHAWN SANFORD, KEVIN SAUDER, SHIRLEY SAUDER, TRENT A. SAUD ER, TRENT J. SCOTP-VERALDI, CARRIE SHAGANASH, GORDON SPOON, MURRAY ST. LOUIS, CLAUDETI'E ST. PIERRE, SERGE STORRY, AMBER STORRY, CLAYTON SWANSON, ART TANGUAY, REAL TANGUAY, SYLVAIN TAYLOR, GARY TAYLOR, LAURIE TAYLOR, SHAWN TAYLOR, WAYNE TENHOUVE, PIETER THOMAS, BRUNO TRUDEL, SERGE VERRINO, BRANDON WALTON, BRIAN WARD, DAN WERDEN, SCOTT WEVER, JOSEPH WICKS, KAYLA WOOD, GARY Z2AJAC, MARGARET ZAJAC, MARIAN
Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential
