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I hope you're safe and good in pandemic.

In Dec. 2019, I filed claim online with Ontario Small Claims Court against Barrymore Furniture Co. Ltd. for $7000. Just ask if you want me to summarize Statement of Claim, but I don't think it's relevant now. I didn't know that

On November 29, 2019, Barrymore Furniture Co. Ltd. (“Barrymore” or the “Company”) filed a Notice of Intention to Make a Proposal (the “NOI”) under Section 50.4 of the _Bankruptcy and Insolvency Act_¸ R.S.C 1985, c. B-3, as amended (the “BIA”) and A. Farber & Partners Inc. (“Farber”) was appointed as trustee (the “Proposal Trustee”).

On January 17, 2020, Barrymore ceased operations and filed an assignment in bankruptcy. Farber was appointed as Bankruptcy Trustee by the Official Receiver (the “Bankruptcy Trustee”), subject to affirmation by the unsecured creditors at the first meeting of creditors which is scheduled for February 6, 2020 at 10:00AM at A. Farber & Partners Inc., LIT, 150 York Street, Suite 1600, in Toronto, Ontario.

On January 21, 2020, the Bankruptcy Trustee obtained an order (the “January 2020 Order”) from the Ontario Superior Court of Justice (Commercial List) (the “Court”) authorizing the Bankruptcy Trustee to sell Barrymore’s assets and, if necessary, disclaim the lease for the Barrymore’s premises, before the first meeting of creditors and the appointment of inspectors. A copy of the January 2020 Order is posted below.

On Mar. 16 2020, Creative Custom Furnishings acquired "the design, intellectual properties and trademark of the Barrymore Company.". I call them CCF. Can I claim that $7000 Compensatory Damages from CCF?

Thank you! Regards, Liska

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No

The Bankruptcy Trustee sold the assets of Barrymore - the liabilities (including your unproven debt) remains with Barrymore. Think of it this way - if I buy your car today, I'm not responsible for the guy you ran over last week.

When all the assets of Barrymore have been liquidated the trustee will pay the creditors in the priority laid out in the Bankruptcy and Insolvency Act:

  1. Secured creditors
  2. Trustee's fees
  3. A levy on dividends (whatever that is)
  4. Preferred unsecured creditors (e.g. employee claims)
  5. Unsecured creditors

You are in category 5; once the Trustee admits your claim or a court rules in your favor. In most liquidations, the amount available for unsecured creditors is very small or zero - dividends of 0-3c in the dollar are typical and can take up to a decade to flow through.

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