Quality Meat Packers Limited (“QMP“) and Toronto Abattoirs Limited (“TAL“) (collectively, the “Companies“) are Ontario incorporated companies that operated a pork processing and packaging business from their leased facility in Toronto, Ontario. The Companies’ financial positions have been negatively affected by a number of factors including the volatility of the price of pork.
The Companies each filed a Notice of Intention to Make a Proposal (“NOI“) pursuant to the provisions of the Bankruptcy and Insolvency Act (“BIA“) on April 3, 2014 and B. Riley Farber Inc. (“B. Riley Farber“) was appointed as Proposal Trustee. The effect of the NOI is that it provides an initial 30-day stay of proceedings (which can be extended by Court Order) over all amounts owing to creditors.
Status Updates
The Companies did not file proposals or obtain Court-approved extensions of the initial 30-day stay period before it expired at the end of the day May 5, 2014; accordingly, the Companies were deemed bankrupt effective May 6, 2014. The Proposal Trustee automatically became the Bankruptcy Trustee pursuant to the provisions of the BIA. Copies of the bankruptcy certificates of appointment are attached below.
The Bankruptcy Trustee assisted the Companies in preparing the Statements of Affairs which the BIA requires be filed within 5 days of bankruptcy. The Bankruptcy Trustee has sent a Notice to Creditors (copies are posted below), which includes the Statement of Affairs, to all creditors listed therein. Please note that the amounts listed as owing to creditors on the Notice to Creditors are estimates only based on the Companies’ books and records. Creditors have an opportunity to file a Proof of Claim for the actual amounts owing to them. The Proof of Claim form is also be included in the Notice to Creditors.
The First Meeting of Creditors was held on June 5, 2014 at 10:00 a.m. at The Sheraton Centre Toronto, Willow East & Centre Room, 123 Queen Street West, Toronto, Ontario.
Employee Matters
The effect of the bankruptcy is to cancel all contracts, including the termination of the employees.
Wages and vacation pay owing to the employees have been paid up to and including May 5, 2014.
The Receiver (defined below) has also prepared and sent letters to employees with the calculation of their termination and severance pay, as well as instructions on how to apply to the Wage Earner’s Protection Program (“WEPP“). This information will also be forwarded to WEPP to assist employees in making a claim to WEPP.
Court Proceedings
April 10, 2014 – Motion from certain hog producers
On April 7, 2014, certain of the hog producers brought an application to Court seeking to have the Companies placed into bankruptcy or receivership which would have the effect of granting the hog producers a super-priority over the inventory pursuant to s.81.2 of the BIA. The matter was heard before Justice Brown of the Ontario Superior Court of Justice (Commercial List) and Justice Brown dismissed the motion. The Proposal Trustee’s First Report, Supplemental First Report and the April 11, 2014 Endorsement with Reasons of Justice Brown are linked below.
On May 2, 2014, a secured creditor filed motion material to be heard on May 6, 2014. The secured creditor is seeking the appointment of B. Riley Farber as Court-appointed receiver in the event the Companies do not file a proposal by the end of the day, May 5, 2014. The motion material and the Proposal Trustee’s Second Report are linked below.
May 6, 2014 – Appointment of Receiver
On May 6, 2014, a secured creditor sought the appointment of B. Riley Farber as a Court-appointed Receiver to administer the orderly realizations of the Companies’ assets. The matter was heard before Justice Brown. Justice Brown approved the appointment of B. Riley Farber as the Receiver of the Companies. The Appointment Order and endorsement of Justice Brown are linked below.
Paragraph 4(k) of the Appointment Order empowers the Receiver “to market any or all of the Property, including advertising or soliciting offers and/or auction proposal in respect of the Property or any part or parts thereto and negotiating such terms and conditions of sale and/or auction…”.
June 18, 2014 – Sale of Assets
On June 18, 2014, the Receiver will be seeking the approval of a liquidation offer received for the plant equipment and office furniture of TAL and QMP. The Motion material and the Receiver’s First Report are linked below.
July 15, 2014
On July 15, 2014, the Receiver brought a motion for Court approval of the Receiver’s Second Report including approval of distributions to secured creditors and the Receiver’s and its counsel’s activities and fees as set out therein. The Motion material, including the Receiver’s Second Report, is linked below. A copy of the Court Order by Justice Brown dated July 15, 2014 as sought by the Receiver is also linked below.
November 5, 2014 – Receiver’s Third Report
On November 5, 2014, the Receiver brought a motion for Court approval of the Receiver’s Third Report including approval of further distributions to secured creditors and the Receiver’s and its counsel’s activities and fees as set out therein. The Motion material, including the Receiver’s Third Report, is linked below. A copy of the Court Order by Justice Pattillo dated November 5, 2014 as sought by the Receiver is also linked below.
Creditor or Employee Enquiries
For creditor or employee enquiries, please contact:
Geanina Schmidt
T: 437.294.4620
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.
Documents
NOI/Bankruptcy Documents
- Notice to Creditors re Bankruptcy – QMP
- Notice to Creditors re Bankruptcy – TAL
- Certificate of Bankruptcy – May 6, 2014 – QMP
- Certificate of Bankruptcy – May 6, 2014 – TAL
- Certificate for the Notice of Intention to Make a Proposal – QMP
- Certificate for the Notice of Intention to Make a Proposal – TAL
- Notice to Creditors with Creditor List – QMP
- Notice to Creditors with Creditor List – TAL
- Notice of Material Adverse Change – QMP/TAL
Court Reports
- First Report of the Proposal Trustee dated April 9, 2014
- Supplementary First Report of the Proposal Trustee dated April 11, 2014
- Second Report of the Proposal Trustee dated May 2, 2014
- First Report of the Receiver dated June 12, 2014
- Second Report of the Receiver dated July 3, 2014
- Third Report of the Receiver dated October 23, 2014
Motion Materials
- Motion Record of the Receiver with Second Report, returnable July 15, 2014
- Motion Record (returnable June 18, 2014)
- Factum of the Receiver (motion returnable June 18, 2014)
- Application Record of the Applicant (Part 1 of 2) returnable May 6, 2014
- Application Record of the Applicant (Part 2 of 2) returnable May 6, 2014
- Motion Record of Synergy Swine Inc. (returnable April 10, 2014)
- Factum of Moving Party (Synergy Swine) (motion returnable April 10, 2014)
- Brief of Authorities of Moving Party (Synergy Swine) (motion returnable April 10, 2014)
- Affidavit of Mark Yungblut (Synergy Swine) (sworn April 8, 2014)
- Responding Motion Record of QMP (returnable April 10, 2014)
- Factum of QMP (motion returnable April 10, 2014)
- Book of Authorities of QMP (motion returnable April 10, 2014)
- Responding Motion Record of Ontario Pork Producers Marketing Board (returnable April 10, 2014)
- Factum and Authorities of Ontario Pork Producers Marketing Board (motion returnable April 10, 2014)
- Supplementary Affidavit of Ken Ovington (Ontario Pork Producers Marketing Board) (sworn April 10, 2014)
Court Orders & Endorsements
- Order of Justice Pattillo dated November 5, 2014 re IP
- Order of Justice Pattillo dated November 5, 2014 re approval of Third Report of the Receiver
- Endorsement of Justice Pattillo dated November 5, 2015
- Order of Justice Brown dated July 15, 2014
- Endorsement of Justice McEwen dated June 18, 2014
- Order of Justice McEwen dated June 18, 2014
- Endorsement of Justice Brown dated May 6, 2014
- Receivership Order of Justice Brown dated May 6, 2014
- Endorsement of Justice Brown dated April 11, 2014
Service List