Shu-Pak Equipment Inc. f/k/a Foxbar Holdings Inc. (“Shu-Pak” or the “Company”) is in the business of manufacturing side-loading garbage trucks from its leased facility in Cambridge, Ontario, and has twenty seven full time employees.
On May 3, 2024 (the “Filing Date”), Shu-Pak filed with the Official Receiver a Notice of Intention to Make a Proposal (“NOI”), pursuant to Section 50.4(1) of the Bankruptcy and Insolvency Act (Canada), R.S.C. 1985, c. B-3 (the “BIA”), to its creditors and Dodick Landau Inc. (“DLI”) was appointed as Proposal Trustee of Shu-Pak (the “Proposal Trustee”).
Subsequent to the filing of its NOI and the granting of an initial 45 day extension to the stay of proceedings by the Ontario Superior Court of Justice (Bankruptcy) (the “Court”), the Company exhausted its cash reserves, was unable to secure additional financing and therefore, could not pay its bills when they came due. As a result, the Company did not qualify for a further extension to its stay of proceedings and, at the time, could not make a Proposal to its creditors. As a result, the Company was deemed bankrupt on July 18, 2024 (the “Date of Bankruptcy”) and DLI became Trustee in Bankruptcy of the Company (the “Trustee”).
Following the Date of Bankruptcy, the Trustee commenced a sales process to sell the business of Shu-Pak. The Trustee accepted an offer from David Tanner, director and shareholder of Shu-Pak, in September 2024 to purchase the assets of Shu-Pak which was approved by the Inspectors of the bankrupt Estate and was only subject to Court approval. In order to ensure that the Transport Canada certification remained available for use by the purchaser, it was decided that the transaction would be implemented by way of Proposal to the creditors which will have the effect of taking Shu-Pak out of bankruptcy and into a proposal proceeding and restructuring the existing legal entity which would allow the Transport Canada certification to continue to be in use by Shu-Pak.
As such, on October 8, 2024 the Trustee filed a Proposal on behalf of Shu-Pak on to its creditors. A meeting of creditors is scheduled on November 5, 2024 at 11:00 a.m. to vote on the Proposal. A creditor package was sent to all known creditors which can be found below. A creditor who has already submitted a claim in the bankruptcy proceeding need not re-submit its claim in the Proposal proceeding, only send a voting letter to the office of the Trustee in advance of the Proposal meeting of creditors on November 5, 2024 at 11:00a.m. in order to participate in the vote on the Proposal. A copy of the voting letter can be found below. Please email the completed voting letter to [email protected]
Zoom link to meeting of creditors to vote on Proposal:
https://us06web.zoom.us/j/87303632023?pwd=6aZdma1SR5FjjaLSrDQNYEFXxFOlxr.1
Documents
Certificate of Filing of a Notice of Intention to Make a Proposal – May 3, 2024
Motion Record – Proposal – returnable May 31, 2024
Certificate of Assignment – Bankruptcy -July 18, 2024
Creditor Package – Bankruptcy -July 24, 2024
Preliminary Report – Bankruptcy – August 6, 2024
Creditor Package – Proposal – October 8, 2024
Creditor Voting Letter – Proposal