Clover Inc. (the “Company”) filed an assignment into bankruptcy on August 2, 2023, pursuant to the Bankruptcy and Insolvency Act (“BIA”) and B. Riley Farber Inc., LIT (“B. Riley Farber”), was appointed as Trustee in Bankruptcy.
The Bankruptcy and Insolvency Act requires that the trustee take minutes of the first meeting of creditors and include an attendance list. If you wish to attend the creditors meeting, we ask that you log in at least ten minutes prior to the start of the creditors meeting so that attendees can be identified on the attendance list and confirm they are creditors and whether or not they have filed a proof of claim prior to the time called for the meeting. The minutes with the attendance list is a public document and is will be posted to this engagement page after the creditors meeting.
Creditors that have filed a proof of claim prior to the time called for the meeting can join The First Meeting of Creditors set to be held via Microsoft Teams videoconference on August 21, 2023, at 10:00AM (EDST) using the following details:
Meeting ID: 268 221 736 524
Dial-in option: + 213-279-1050,,657589787#
To participate at this meeting you are required to file a Proof of Claim with the Trustee prior to the time called for the meeting. Links to relevant documents can be found below.
WEPPA and Employees
Clover Inc. terminated all employment on July 31, 2023 and filed an assignment in bankruptcy on August 2, 2023 and B. Riley Farber Inc. was named as Trustee in Bankruptcy.
We understand that Clover Inc. paid all the wages and vacation pay to July 31, 2023 and has already issued employees’ Record of Employment and T4 Form.
Claims for termination and severance pay are unsecured claims in the bankruptcy estate. It appears that there will not be any monies available to pay the unsecured claims from the bankruptcy estate. However, employees may have a claim that may be paid by the Wage Earner Protection Program (the “WEPP”) for unpaid termination and severance pay up to an amount equaling seven weeks of maximum insurable earnings under the Employment Insurance Act (approximately $8,278.83), less certain amounts prescribed by regulation. The Trustee is currently reviewing Clover Inc.’s books and records to determine which employees are eligible for a WEPP claim. The Trustee will provide eligible employees with additional information on how to apply for payments under the WEPP in the next few weeks.
Section 102(1) of the BIA requires the trustee to prepare and send a Notice to Creditors including the names, addresses and amounts owing to each creditor. The trustee is sensitive to the privacy concerns raised by certain Streamers and GEMS creditors; accordingly, the trustee will provide the amount owing to a specific creditor upon their request if they still want to file a proof of claim. The proof of claim is a public document. Section 126(1) of the BIA states “Every creditor who has filed a proof of claim is entitled to see and examine the proofs of other creditors”.
The trustee does not anticipate there will be any money available for a distribution to creditors that file proofs of claim.
Creditor or Employee Inquiries
For creditor or employee inquiries, please contact:
Corporate Insolvency Administrator | Restructuring
E: [email protected]
The case updates and court filed documents on this website are for information purposes only and you should consult your financial or legal adviser if you have any questions or concerns about your rights or obligations. Additional updates on the status of these proceedings may become available in the future.
• Certificate of Appointment – August 2, 2023
• Creditors Package
• Certificate of Appointment (Amended) – August 16, 2023
• Trustee’s Preliminary Report – August 18, 2023
• Minutes of the First Meeting of Creditors – August 21, 2023