BC Craft Supply Co. Ltd.

Overview

On January 24, 2022, BC Craft Supply Co. Ltd. (the “Company”) filed a Notice of Intention to Make a Proposal (“NOI”) pursuant to subsection 50.4(1) of the Bankruptcy and Insolvency Act R.S.C., 1985, c. B-3 (“BIA”) and Crowe MacKay & Company consented to act as Licensed Insolvency Trustee under the Proposal.

Pursuant to subsection 50.4(8) of the BIA, the initial stay period under the NOI proceeding is from January 24, 2022 to February 23, 2022 unless the period is extended by the Court upon application by the Company. During this period, the Trustee will monitor the business of the Company and assist the Company in preparing its Proposal.

On January 25, 2022, the Company made an application to Court to approve, among other things, the granting of an interim financing facility/charge and an administration charge. Documents in connection with this application is available below. An Order was granted by the Court on January 26, 2022.

On February 16, 2022, the Company made an application to Court to approve an extension of the stay of proceedings and time to file a proposal to its creditors to April 8, 2022. Documents in connection with the application are available below. An Order was granted by the Court on February 22, 2022.

On April 4, 2022, the Company filed a Proposal to its creditors pursuant to the BIA. The Meeting of Creditors to consider the Proposal will be held on Monday, April 25, 2022 at 2:00PM PST via video conference call. For details pertaining to the meeting, please refer to the Proposal Creditor Package dated April 5, 2022

On April 25, 2022, the Proposal was accepted by the requisite majority of the ‘affected creditors’ (as defined in the Proposal) at the meeting of creditors.

On April 28, 2022, the Proposal Trustee submitted its Report to Court on the Company’s Proposal. On the same day, the Proposal Trustee made an application to Court to among other things, to amend the Proposal (the “Amended Proposal”) ,and to implement and complete the Amended Proposal. The hearing was scheduled for Tuesday, May 10, 2022. A copy of the Report to Court on the Company’s Proposal and the Notice of Application are below.

On May 10, 2021, the Honourable Mr. Justice Weatherill granted an Order to, among other things, authorize and direct the Proposal Trustee, Company and the directors of the Company to take all actions and steps necessary or appropriate to implement and complete the Amended Proposal. A copy of the Order, with the Amended Proposal as ‘Schedule B’ is below.

The Amended Proposal allowed for the Cash Distribution Dates and Equity Conversion Date to be extended by up to 180 days with the written consent of the Proposal Trustee and/or estate inspectors (if any). Although an inspector was appointed at the meeting of creditors, that inspector has since resigned. Given there was not an estate inspector, the Proposal Trustee granted the 180 day extension to the Cash Distribution Dates and Equity Conversion Date. The updated first deadline for the Company to make a payment to the Proposal Trustee pursuant to the Proposal, was December 27, 2023 (the “First Payment Deadline”).

Ultimately, the Company was unable to meet the First Payment Deadline, and was also unable to make an application to Court in order to further amend the Amended Proposal to allow for, among other things, a further extension to the First Payment Deadline. Accordingly, the Company was in default of the terms of the Amended Proposal. The Trustee issued a letter to all creditors on January 30, 2024 which had enclosed the Notice of Default in Performance of a Proposal.