Rockshield Engineered Wood Products ULC (“Rockshield”) is a manufacturer of plywood used to make a variety of products including furniture and cabinetry, commercial millwork, wall paneling, stair parts, manufactured housing, and doors. Rockshield filed a Notice of Intention to Make a Proposal (the “NOI”) on February 8, 2021 under the provisions of section 50.4 (1) of the BIA. Pursuant to the provisions of subsection 69 (1) of the BIA a stay of proceedings has been initiated and all proceedings against Rockshield are stayed as of the date of filing of the NOI.
On February 10, 2021, the Court made an order extending the time for filing a proposal and extending the stay of proceedings for a period of 45 days up to and including April 24, 2021 and for other relief including (a) granting an administration charge over its property, assets and undertakings in favour of the Proposal Trustee and its counsel and the Applicant’s counsel up to the maximum amount of $150,000; (b) approving a debtor in possession financing term sheet between Bank of Nova Scotia and Rockshield and a corresponding charge in favour of the DIP lender up to the maximum amount of $1.5 million and subordinate only to the Administration Charge, (c) granting a charge over the Property in favour of the directors and officers in respect to post-filing obligations in their capacity as directors and officers of Rockshield up to the maximum amount of $370,000, (d) authorizing Rockshield to pay, with the approval of the Proposal Trustee, amounts owing for goods or services actually supplied to it prior to the date of the NOI proceeding if, in the opinion of Rockshield, such payment is necessary to maintain the uninterrupted operations of the business.
On April 22, 2021, the Court made a further order extending the time for filing a proposal and extending the stay of proceedings for a period of 45 days up to and including June 8, 2021.