Redstone Investment Corporation and Redstone Capital Corporation

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CCAA Proceedings


On March 28, 2014, Redstone Investment Corporation (“RIC”) and Redstone Capital Corporation, (“RCC”, and together with RIC, “Redstone” or the “Applicants”) applied for and received an initial order (the “Initial Order”) for protection from its creditors pursuant to the Companies’ Creditors Arrangement Act (“CCAA”), R.S.C.1985, c.C-36 from the Ontario Superior Court of Justice (Commercial List), which includes, among other things, a stay of proceedings against Redstone, and the appointment of Grant Thornton Limited as monitor of the Applicants (the “Monitor”).


The Initial Order, among other things:


1. granted a stay of proceedings against Redstone, the Monitor, and Redstone’s director and officer until April 26, 2014; and
2. directed that Redstone make no payments of principal or interest on account of amounts owing by Redstone to investors and other creditors.


Subsequent to the issuance of the Initial Order, on April 4, 2014, the Court appointed Blake, Cassels & Graydon LLP as Representative Counsel on behalf of the RCC Bondholders and the RIC Noteholders (collectively, the "Investors"). The Order appointing Representative Counsel is available below. Future communications from Representative Counsel to Investors may also be made available on this website.


Receivership Proceedings

On August 8, 2014, by Order of the Superior Court of Justice (Commercial List) (the “Court”), Grant Thornton Limited was appointed receiver and manager (in such capacity, the “Receiver”) of RIC and RCC (the “Receivership Order”). On September 17, 2014, pursuant to an order of the Court, the Receivership Order was amended to include 1710814 Ontario Inc. o/a Redstone Management Services (“RMS”). A copy of the Receivership Order is available below. Further communications and court documents related to the receivership proceedings will be posted on the Receiver’s website below.


Directors and Officers Claim Process


On August 8, 2014, pursuant to an Order of the Court, a claims bar procedure (the "D&O Claims Procedure") was approved for the identification, quantification and barring of certain claims against the directors and officers of RIC and RCC. Documents and forms related to the D&O Claims Procedure are available below.


Claims Procedure


On January 12, 2015, the Court authorized the Receiver to call for claims against RIC, RCC and RMS, as well as acknowledge claims of Investors of RIC and RCC (collectively, the “Claims Procedure Order”). The Claims Procedure Order also barred any Claims not submitted by March 25, 2015. The results of the Claims submitted pursuant to the Claims Procedure Order are summarized in further detail in the Receiver’s Fourth Report dated June 19, 2015 (the “Fourth Report”), available below.


Substantive Consolidation Hearing


On June 30, 2015, the Court issued an order which, among other things, ordered that the issue of whether the estates of RIC, RCC and/or RMS should be substantively consolidated shall be determined by the Court at a hearing scheduled for September 28, 2015, which hearing was adjourned to October 30, 2015 (the “Substantive Consolidation Hearing”). The Substantive Consolidation Hearing commenced on October 30, 2015 before the Honourable Regional Senior Justice Morawetz, and was adjourned to December 2, 2015 for the completion of oral argument. Pursuant to an attendance before His Honour on November 30, 2015, the adjournment was extended to a date to be announced and the resumption of the Substantive Consolidation Hearing was scheduled for March 30, 2016.  The Substantive Consolidation Hearing resumed on March 30, 2016 for a full day and was then adjourned to April 26, 2016.  The Substantive Consolidation Hearing resumed on April 26, 2016, for a full day, oral argument concluded and His Honour reserved his decision.  Further details related to the Substantive Consolidation Hearing are summarized in the Fourth Report, available below.


The Court also issued an order appointing three sets of representative counsel to represent the interests of, respectively, the RIC, RCC and RMS investors, in each case solely with respect to the Substantive Consolidation Hearing, and in each case providing that investors may opt-out of such representation by writing to the applicable representative counsel and advising of same. The following firms were appointed as representative counsel with respect to the Substantive Consolidation Hearing:


  • RIC – Regent Law Professional Corporation;
  • RCC – Thornton Grout Finnigan LLP; and
  • RMS – Chaitons LLP

Administration of the Loan Portfolios and Next Steps 


An update on the Receiver’s activities with respect to the RIC and RMS loan portfolios is summarized in detail in the Fourth Report, available below.


Once the Substantive Consolidation Hearing, scheduled for March 30, 2016, has been adjudicated, and in accordance with the Court’s decision regarding same, the Receiver will be in a position to seek Court-authorization for an interim distribution to the RIC, RCC and/or RMS investors, as applicable.


Claims Process


Notices of Application and Notices of Motion


Affidavits and Responding Affidavits


Facta


Books of Authorities


Court Reports


Court Orders, Reasons for Decisions and Endorsements


E-Service List and Address List


Contact Information for the E-Service List Keeper


 Notices to Creditors


Other


D&O Claims Procedure


Substantive Consolidation Motion