On October 30, 2009, AFC Food Group Inc. (“AFC” or the “Company“) filed a Notice of Intention to Make a Proposal (“NOI“) under Section 50.4 of the Bankruptcy and Insolvency Act (the “BIA“). GlassRatner Inc. (“B. Riley Farber”) was appointed as Trustee (“Trustee“) in the Proposal of the Company.
Status Updates
On November 10, 2009, pursuant to Subsection 50.4(7)(b) of the BIA, the Trustee, in its capacity as Proposal Trustee, filed a Notice of Material Adverse Change with the Official Receiver and mailed all AFC creditors with the Notice on the same date.
On November 13, 2009, pursuant to an Order of the Ontario Superior Court of Justice (the “Court“), GlassRatner was appointed Receiver of AFC. On that same date, an Approval and Vesting Order approved the sale of the assets (primarily accounts receivable and inventory) encumbered by the security of the Royal Bank of Canada (“RBC“) to Benevito Foods Inc. (the “RBC Sales Transaction“). The RBC Sales Transaction closed on November 20, 2009.
On November 20, 2009, an Approval and Vesting Order was issued by the Court approving the sale of assets (primarily equipment) encumbered by the security of each of GE Capital and the Business Development Bank of Canada to Benevito Foods Inc. These transactions also closed on November 20, 2009.
The cumulative effect of the above transactions is that Benevito Foods Inc. acquired all of the assets and undertaking of AFC, with the exception of outstanding Scientific Research & Experimental Development tax credits, to effect a going concern sale.
AFC was unable to file a Proposal within 30 days of the NOI filing and, as a result, on December 1, 2009, AFC was deemed to have made an assignment in bankruptcy. GlassRatner was appointed Trustee in Bankruptcy. The first meeting of creditors was held on December 22, 2009.
Creditor or Employee Enquiries
For creditor or employee enquiries, please contact:
Geanina Schmidt
T: 437.294.4620
E: gschmidt@glassratner.com
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
- NOI Certificate
- NOI Notice to Creditors
- Notice of Material Adverse Change
- Certificate of Appointment – Bankruptcy
- Notice to Creditors re: Bankruptcy
Court Orders
- Receivership Appointment Order, dated November 13, 2009
- Approval and Vesting Order, dated November 13, 2009
- Endorsement, dated November 13, 2009
- Approval and Vesting Order, dated November 20, 2009
- Endorsement, dated November 20, 2009
- Approval and Distribution Order, dated December 16, 2009
- Endorsement, dated December 16, 2009
- Order Discharging Proposal Trustee, dated November 8, 2012
- Order Discharging Trustee in Bankruptcy, dated December 6, 2012