Healthchain Inc. (“HC”) provides software solutions that integrate with existing healthcare management systems and workflows to make outdated technologies and paper-based processes more efficient. On February 28, 2020, HC filed a Notice of Intention to Make a Proposal to its creditors pursuant to subsection 50.4 (1) of the Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, as amended (the “BIA”) and Dodick Landau Inc. was named Proposal Trustee. Pursuant to the provisions of subsection 69 (1) of the BIA a stay of proceedings has been initiated and all proceedings against HC are stayed as of the date of filing of the NOI.
On March 5, 2019, the Court made an order granting, among other things, enhanced powers to the Proposal Trustee and an extension to the stay of proceedings to May 12, 2020 providing HC with additional time to formulate its proposal to its creditors.
On May 7, 2020, the Court made an order granting, among other things, approval of a debtor-in-possession loan and charge, as well as an extension to the stay of proceedings to June 26, 2020.
On June 25, 2020 and August 7, 2020, the Court made further orders extending the stay of proceedings to August 10, 2020 and August 26, 2020, respectively.
On August 26, 2020, the Proposal Trustee filed with the Official Receiver a Proposal, in the name, and on behalf, of Healthchain Inc. The Proposal Trustee mailed a Creditors’ Package to all known creditors on September 4, 2020, which included a notice of two meetings of creditors to consider the Proposal which took place by videoconference on September 14, 2020 at 11:00 a.m. for unsecured creditors and 12:00 p.m. for secured creditors. The requisite majorities voted in favour of the proposal in each creditor class.
On October 14, 2020, the Court made an order which, among other things, approved the Proposal.