On December 12, 2005, Rumble Automation Inc. (the “Company”) filed a Notice of Intention to Make a Proposal under Section 50.4 of the Bankruptcy and Insolvency Act (“BIA”). B. Riley Farber Inc. (“B. Riley Farber“) was appointed as Trustee in the Proposal of the Company.
In addition, by an Order of the Honourable Mr. Justice Lederman dated December 13, 2005, B. Riley Farber was also appointed as Interim Receiver of all of Rumble’s current and future assets, undertaking and properties of every nature and kind whatsoever, and wherever situate including all proceeds thereof with authority limited to the provisions of the Order but, for greater certainty, not to manage or operate the business and undertaking of the Debtor without further order of the Court.
On January 9, 2006, the Company sought and was granted an extension of 45 days in which to file a Proposal pursuant to Section 50.4 of the BIA, so that it must file a Proposal within 75 days of the day in which it filed a Notice of Intention to Make a Proposal.
On February 27, 2006, the Company filed a Proposal with the Official Receiver pursuant to Section 62 of the BIA. The first meeting of creditors was held on March 20, 2006. At the meeting a requisite majority of creditors, in number and value, voted to accept the Proposal.
On April 24, 2006, the hearing for the approval of the Proposal of the Company was heard before Deputy Registrar Nettie. The Court, on hearing Counsel for the Company and with no opposition from B. Riley Farber or other creditors, granted an adjournment of the sanction hearing to May 25, 2006.
At the adjourned sanction hearing, the Court refused, pursuant to section 61(2) of the BIA, to approve and sanction the Proposal of Rumble, and declared that Rumble was deemed to have made an assignment in bankruptcy.
The First Meeting of Creditors of the Bankrupt was held on June 20, 2006 at 10:30 in the forenoon at the Ramada Hotel, 185 Yorkland Blvd., North York, Ontario.
In addition, the Order dated December 13, 2005 was amended on May 25, 2006 to expressly empower and authorize the Interim Receiver to, inter alia, manage, operate and carry on the business of the Debtor.
On June 9, 2006, the Interim Receiver obtained Court approval to enter into an asset purchase agreement (“APA”) to sell certain assets (the “Purchased Assets”) of the Company to RKO Automated Solutions Ltd.(the “Purchaser”). In addition, the Court granted approval for the Interim Receiver to enter into an accounts receivable collection agreement (the “Collection Agreement”) with the Purchaser and RPG Receivable Collection Group Inc. On completion of the transaction, the Interim Receiver filed its Interim Receiver’s Certificate with the Court which had the effect of immediately vesting all of the Company’s and the Interim Receiver’s right, title and interest, if any, in and to the Receiver Purchased Assets to the Purchaser.
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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.
- Notice of Intention to Make a Proposal
- Proposal filed with Official Receiver dated February 27, 2006
- Notice of Proposal to Creditors package
- First Report of Interim Receiver, dated February 3, 2006
- Second Report of Interim Receiver, dated May 24, 2006
- Third Report of Interim Receiver, dated June 7, 2006 – Part I
- Third Report of Interim Receiver, dated June 7, 2006 – Part II
- Third Report of Interim Receiver, dated June 7, 2006 – Part III
- Fourth Report of Interim Receiver, dated August 8, 2006
- Supplemental Fourth Report of Interim Receiver, dated August 11, 2006
- Fifth Report of Interim Receiver, dated November 13, 2006
Court Orders & Endorsements
- Order appointing Interim Receiver, dated December 13, 2005
- Order approving extension of time to file Proposal, dated January 9, 2006
- Order, dated February 7, 2006
- Order fixing date for the hearing of the application for Approval by the Court of Proposal, undated
- Endorsement by Registrar Nettie, dated April 24, 2006
- Order re: Deemed Bankruptcy, dated May 25, 2006
- Order amending powers of Interim Receiver, dated May 25, 2006
- Approval and Vesting Order, dated June 9, 2006