The trustee acting for Meadow Creek Cedar, which is in creditor protection, says the company is getting closer to paying off its outstanding debts.
In August, Meadow Creek was granted a 60-day extension by creditors, which expired on October 8.
According to trustee Lloyd Murphy, the funds to complete the proposal were confirmed as available prior to that date. However, the holdup on their release has been the preparation and finalization of documents by Canada Revenue Agency to remove liens from the property title.
“Both the solicitor for the company and Canada Revenue Agency have now advised us that matters are progressing and documentation should be completed this week so that funds can be released,” Murphy said in an email to the Star.
Meadow Creek Cedar filed a proposal for creditor protection in early 2009.
At the time it owed $427,000 in payroll deductions to Canada Revenue Agency, a secured creditor. Unsecured creditors were owed almost $1.5 million and were to receive 25 cents on the dollar.
The proposal was approved that fall. Five out of six payments to the tax collector have since been made, along with three out of four payments to unsecured creditors.
However, Meadow Creek defaulted on its final payments, due by the end of April and November 2010 respectively.
Canada Revenue Agency is still owed $71,000 and a total of $91,000 is due to over 50 unsecured creditors from throughout BC and Alberta.