Toronto Machine & Tool Inc. (“TMT”) operates a specialty machine and tool shop and supplies machined castings and components, fabrications and assemblies to customers in a variety of industry sectors including Pulp and Paper, Oil and Gas, Mining, Agriculture, Manufacturing, Industrial/ Heavy Machinery and Automotive. On December 8, 2017, TMT 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 TMT are stayed as of the date of filing of the NOI. On January 5, 2018, pursuant to section 62 of the BIA, TMT filed with the Official Receiver a proposal (the “Proposal”). A meeting of the creditors of TMT to consider the Proposal was held at the office of the Proposal Trustee, Dodick Landau Inc., located at 4646 Dufferin St., Suite 6, Toronto, Ontario, M3H 5S4, on January 25, 2018 at 11:00 a.m. At the meeting of creditors the creditors approved the Proposal. The Proposal depended on the sale of the real properties by TMT Ltd., a company related to TMT and its landlord. In early February 2018, the purchaser of the real properties terminated its purchase and sale agreements and the secured lender of TMT and TMT Ltd. appointed a Receiver who terminated TMT Inc.’s operations. As a result, the Proposal Trustee advised the Court on March 5, 2018 of this material adverse change and recommended that the Court not approve TMT’s Proposal. The Receiver commenced a liquidation of the assets, including a sale of TMT Ltd’s real properties. However, due to pre-existing environmental contamination on TMT Ltd’s properties, the Receiver was unable to sell the real properties and, as a result, sought its discharge and returned possession of the real properties to TMT Ltd. in June 2019.
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