Drake towing (2018) Ltd.

Overview

On May 17, 2022, Drake Towing (2018) 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 May 17, 2022 to June 16, 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 June 14, 2022 the Company made an application to Court to approve, among other things, the granting of an extension of the stay of proceedings and the deadline for the filing of a proposal to July 29, 2022, an administration charge, a directors’ charge, and the approval of interim financing and the related interim financing charge. An order was granted by the Court on June 15, 2022.

On July 25, 2022, the Company made an application to Court to extend the time for the filing of a proposal to September 12, 2022. An Order was granted by the Court on August 18, 2022.

On August 30, 2022, the Company made an application to Court to extend the time for filing of a proposal to October 27, 2022 as well as approving the proposed sale and investment solicitation process (the “SISP”) of the business and/or assets of the Company. An Order was granted by the Court on September 2, 2022

Please see below for the teaser letter with preliminary information on the Company, as well as details of the major assets for sale.

Please note that the deadline for submission of bids is 5PM (Pacific) September 26, 2022.

On October 18, 2022, the Company made an application to Court to extend the time for filing of a proposal to November 17, 2022 as well as approving the sale transaction for the purchase of the Company’s assets. An Order was granted by the Court on October 21, 2022.

On November 18, 2022 the Proposal Trustee confirmed to the Office of the Superintendent of Bankruptcy through the filing of the requisite form, that a Proposal was not filed within the permitted time, and accordingly the Company was deemed to have made an assignment in bankruptcy. Crowe MacKay & Company Ltd. was appointed by the Official Receiver as the trustee of the bankrupt estate (the “Trustee”).

For further information, please contact Mr. Nelson Allan at (604) 697 5209 or nelson.allan@crowemackay.ca.