Updated October 2015
Worldspan Marine Inc., Crescent Custom Yachts Inc., Queenship Marine Industries Ltd., 27222 Developments Ltd. and Composite FRP Products Ltd. (the “Companies”) obtained a Court Order from The Supreme Court of British Columbia on Monday, June 6, 2011 pursuant to the Companies’ Creditors Arrangement Act (“CCAA”). Boale, Wood & Company Ltd. has been appointed the Monitor. The Initial Order provides the companies with a Stay of Proceedings against all actions and creditors. A copy of this Court Order can be obtained by clicking on the link below.
At the comeback hearing held on June 23, 2011, the Stay of Proceedings was extended to July 22, 2011. A copy of this Court Order can be obtained by clicking on the appropriate link below. The Monitors initial report dated June 21, 2011 can be accessed by clicking on the link below.
At the hearing held on July 22, 2011, the Stay of Proceedings was extended to September 20, 2011. A copy of this Court Order dated July 22, 2011 can be obtained by clicking on the appropriate link below. The Monitor’s second report dated July 20, 2011 can be accessed by clicking on the link below. The Court also approved a claims procedure to be followed by creditors of the Companies. Please refer to the Notice to Creditors regarding the claims process and Proof of Claim package by clicking the appropriate links below.
At the hearing on August 11, 2011, Wolrige Mahon Limited was appointed as Vessel Construction Officer (VCO), with a mandate to conduct an analysis of the cost to complete the construction of the Vessel “QE014226C010” (the “Vessel”). It is currently anticipated that the report of VCO will be ready by the end of October, 2011. The order appointing the VCO can be accessed by clicking the link below.
At the hearing on September 19, 2011, the Stay of Proceedings was extended to December 16, 2011. The Companies sought at that hearing the right to market the Vessel to other purchasers, other than the main intended purchaser of the vessel, Harry Sargeant III. The Court gave the Companies that right unless Mr. Sargeant posted $4.0 million (US) in trust by September 29, 2011.
As a result of Mr. Sargeant not posting the funds, the Federal Court ordered on October 7, 2011 that the Companies may market the Vessel to others. The court then set out numerous terms and conditions upon which this may be done. The order regarding marketing can be accessed by clicking the link below.
At the hearing on November 7, 2011 the Supreme Court of British Columbia approved the sale of the land and building owned by 27222 Developments Ltd.
On December 16, 2011, on the application of the petitioners, the Supreme Court of British Columbia granted an order confirming and extending the Initial Order and stay pronounced June 6, 2011, and subsequently confirmed and extended to December 16, 2011, by a further 119 days to April 13, 2012. The petitioners applied for the extension of the Initial Order to April 13, 2012 in order to permit them additional time to work toward a plan of arrangement by continuing the marketing of the Vessel with Fraser Yachts, to explore potential Debtor In Possession (“DIP”) financing to complete construction of the Vessel pending a sale, and to resolve priorities among in rem claims against the Vessel.
By Consent Order dated April 13, 2012 the Supreme Court of British Columbia granted an order confirming and extending the Initial Order and stay to April 20, 2012.
On April 20, 2012, on application of the petitioners, the Supreme Court of British Columbia approved the sale of the 70’ Queenship vessel with the hull identification number A129.
On April 20, 2012, on application made by Comerica Bank, the Supreme Court of British Columbia granted an Order confirming and extending the Initial Order and stay to June 30, 2012.
On June 25, 2012, on application made by Comerica Bank, the Supreme Court of British Columbia granted an Order confirming and extending the Initial Order and stay to September 21, 2012.
On September 20, 2012, on application made by Comerica Bank, the Supreme Court of British Columbia granted an Order confirming and extending the Initial Order and stay to December 15, 2012.
On December 13, 2012, on application made by Comerica Bank, the Supreme Court of British Columbia granted an Order confirming and extending the Initial Order and stay to February 22, 2013.
On February 13, 2013, on application made by the Petitioners, the Supreme Court of British Columbia granted an Order confirming and extending the Initial Order and stay to April 24, 2013.
On April 22, 2013, on application made by the Petitioners, the Supreme Court of British Columbia granted an Order confirming and extending the Initial Order and stay to July 22, 2013.
On July 11, 2013, on application made by the Petitioners, the Supreme Court of British Columbia granted an Order confirming and extending the Initial Order and stay to October 21, 2013.
On October 17 , 2013, on application made by the Petitioners, the Supreme Court of British Columbia granted an Order confirming and extending the Initial Order and stay to November 29, 2013.
On November 29, 2013, on application made by the Petitioners, the Supreme Court of British Columbia granted an Order confirming and extending the Initial Order and stay to January 28, 2014.
On January 28, 2014, the Supreme Court of British Columbia dismissed the application made by the Petitioners for an order extending the stay of proceedings that was granted under the Initial Order. Likewise, that stay of proceedings then expired. The Court then discharged the Monitor from all further obligations under the CCAA but otherwise left the provisions of the Initial Order substantially in effect. The court did however grant to the Monitor the authority to continue to defend an appeal that is currently ongoing in the BC Court of Appeal as well as deal with various claims currently being made under the “Administration Charge” that was granted over the assets of the Petitioners under the Initial Order.
On September 30, 2015, the Supreme Court of British Columbia approved the accounts of the Monitor, its counsel, and other parties included under the Administration Charge and ordered that the Monitor distribute the remaining funds held under the Administration Charge as follows:
(1) In payment of the amounts referenced in Schedule “C” of the Court Order;
(2) Any surplus funds to be paid into Court.
For further information regarding this matter, please contact John McEown at (604) 605-3335 or at jmceown@boalewood.ca
Creditors
Creditor List
Notice to Creditors
Proof of Claim Package
Notice to Creditors re: Maritime Claims
Notice to Creditors re: Filing Affidavit to Federal Court
Court Orders
Initial Order dated June 6, 2011
Extension Order dated June 23, 2011
Order extending stay to September 20, 2011
Claims Process Order dated July 22, 2011
Federal Court Order dated August 29, 2011
Order appointing Vessel Construction Officer
Federal Court Order re: Listing Vessel for Sale
Order US Chapter 15 Recognizing Foreign Proceeding
Order dated October 15, 2012
Order extending stay to December 16, 2011
Order extending stay to April 13, 2012
Order extending stay to April 20, 2012
Order extending stay to June 30, 2012
Order approving Sale of 70’ Queenship Vessel A129
Order extending stay to September 21, 2012
Order extending stay to December 15, 2012
Order extending stay to February 22, 2013
Order extending stay to April 24, 2013
Order extending stay to July 22, 2013
Order extending stay to October 21, 2013 (document to come)
Order extending stay to November 29, 2013 (document to come)
Order extending stay to January 28, 2014 (document to come)
Order dismissing stay
Order detailing distribution of funds under Administration Charge
Monitors Reports
Report #1 dated June 21, 2011
Report #2 dated July 20,2011
Report #3 dated August 17, 2011
Report #4 dated September 16, 2011
Report #5 dated November 4, 2011
Report #6 dated December 15, 2011
Monitor’s Reporting Affidavit dated April 19, 2012
Monitor’s Reporting Affidavit dated June 29, 2012
Other Information
Petition to the Court
Service List
Vessel Listing Agreement
Vessel Construction Officer Report #1 dated September 16, 2011
Vessel Construction Officer Report #2 dated October 31, 2011