On February 10, 2021 (the “Filing Date”), Nuotaka International Inc. (“Nuotaka” or the “Debtor”) filed with the Official Receiver a Notice of Intention (“NOI”) to make a proposal to its creditors and named Dodick Landau Inc. (“DLI”) as Proposal Trustee (the “Proposal Trustee”). Nuotaka is a Canadian contract wedding dress manufacturer. Nuotaka is the manufacturer for the bridal retailer Romona Keveza Collections LLC., a related party. A further overview of the Debtor’s business operations and financial difficulties which led to the filing of the NOI is set out in the Affidavit of Romona Keveza sworn April 20, 2021 (the “Keveza Affidavit”).
The Court granted orders which approved extensions of the time for the Debtor to file a proposal to its creditors up to an including July 25, 2021. On July 23, 2021, Nuotaka filed with the Office of the Superintendent of Bankruptcy a proposal to its creditors (“Proposal“). The Proposal has been developed to effect a restructuring of the business and affairs of Nuotaka with the expectation that all existing creditors will derive a greater benefit from the completion of the restructuring and the continued operation of the business and affairs of Nuotaka than would result from a liquidation of Nuotaka’s assets in a bankruptcy proceeding.
The Creditor’s Meeting to vote on the Proposal was held on August 26, 2021 at 11 a.m. via video conference and was presided over by Ms. Melissa Millar of the Office of the Superintendent of Bankruptcy. The Proposal was accepted by the required majority of creditors at the meeting and was subsequently approved by the Court on October 4, 2021. The Proposal requires, among other things, that payments be made to the Proposal Trustee over 3 years beginning April 1, 2022. Once all Proposal payments have been made the Proposal will have been fully completed and the Proposal proceeding will have ended. Should the Proposal Payments not be made, the Proposal may be annulled and Nuotaka would become automatically bankrupt.
All creditors who have not yet submitted a proof of claim to the office of the Proposal Trustee may send it to the attention of Ms. Brenda McKnight, either by email ([email protected]), fax (416-649-7725) or regular mail (Dodick Landau Inc., 4646 Dufferin St., Suite 6, Toronto, ON, M3H 5S4).