Current Engagements

The purpose of this website is to provide documents to any interested persons regarding the Proposal of this company. The documents listed below are in pdf format and can be viewed and/or downloaded.

On October 30, 2009, AFC Food Group Inc. ("AFC" or the "Company") filed a Notice of Intention to Make a Proposal ("NOI") under Section 50.4 of the Bankruptcy and Insolvency Act (the "BIA"). A. Farber & Partners Inc. was appointed as Trustee ("Trustee") in the Proposal of the Company. A copy of the Certificate of filing the NOI is attached below.

On November 10, 2009, pursuant to Subsection 50.4(7)(b) of the BIA, the Trustee, in its capacity as Proposal Trustee, filed a Notice of Material Adverse Change with the Official Receiver and mailed all AFC creditors with the Notice on the same date. Set out below is a copy of that document.

On November 13, 2009, pursuant to an Order of the Ontario Superior Court of Justice (the "Court"), A. Farber & Partners Inc. was appointed Receiver of AFC. On that same date, an Approval and Vesting Order approved the sale of the assets (primarily accounts receivable and inventory) encumbered by the security of the Royal Bank of Canada ("RBC") to Benevito Foods Inc. (the "RBC Sales Transaction"). The RBC Sales Transaction closed on November 20, 2009. Set out below are the Court Orders granted in relation to the receivership appointment and the RBC Sales Transaction.

On November 20, 2009, an Approval and Vesting Order was issued by the Court approving the sale of assets (primarily equipment) encumbered by the security of each of GE Capital and the Business Development Bank of Canada to Benevito Foods Inc. These transactions also closed on November 20, 2009.

The cumulative effect of the above transactions is that Benevito Foods Inc. acquired all of the assets and undertaking of AFC, with the exception of outstanding Scientific Research & Experimental Development tax credits, to effect a going concern sale.

The Company did not file a Proposal with the Proposal Trustee on or before November 30, 2009, resulting in the Company being deemed to have made an assignment in bankruptcy on December 1, 2009.  The Notice to Creditors package is below.

Queries about AFC may be directed to Rob Stelzer at 416 496-3500 or by email at rstelzer@farberfinancial.com.

 

Employees formerly employed by AFC may have entitlements under Section 81.4 of the BIA and the Wage Earner Protection Program Act ("WEPPA"). Section 81.4 of the BIA provides that an employee has a priority position for wages, salary, commissions and accrued vacation pay amounts earned but unpaid during the six months leading up to the insolvency event (six months prior to November 13, 2009) to a maximum of $3,031.94.

All former employees have (or will have) received their unpaid wages to November 13, 2009.

Under WEPPA, the eligible amount can include termination and severance in certain situations. Employees retained by Benevito Foods Inc. are not entitled to receive termination and severance amounts.

Please visit www.hrsdc.gc.ca/eng/labour/employment_standards/wepp/about.shtml for more information about WEPPA.

Farber is co-ordinating the collection of information with AFC and will be providing affected employees with details of amounts owed under Section 81.4 and WEPPA shortly.