Artic Machinery Ltd

Overview

On October 10, 2025, Artic Machinery Ltd. (the “Company”) filed a Notice of Intention to Make a Proposal (“NOI”) pursuant to subsection 50.4(1) of the Bankruptcy and Insolvency Act R.S.C., 1985, c. B-3 (“BIA”) and Crowe MacKay & Company consented to act as Licensed Insolvency Trustee (the “Proposal Trustee”) under the Proposal.

Pursuant to subsection 50.4(8) of the BIA, the initial stay period under the NOI proceeding is from October 10, 2025 to November 9, 2025, unless the period is extended by the Court upon application by the Company. During this period, the Proposal Trustee will monitor the business of the Company and assist the Company in preparing its Proposal.

On October 30, 2025, the Company made an application to Court to approve, among other things, the granting of an extension of the stay of proceedings and the deadline for the filing of a proposal, from November 9, 2025 to December 24, 2025, an administration charge, and the approval of interim financing from a related party as well as the related interim financing charge, as well as approval to transfer these proceedings from the Prince Rupert registry to the Vancouver Registry. The Court hearing took place on November 4, 2025, upon which the Court granted the relief sought. Copies of the relevant pleadings are available below.

On December 12, 2025, the Company made an application to Court to approve, among other things, extend the deadline to file a proposal from December 24, 2025 to February 7, 2026, and to approve an increase in the maximum amount of intercompany advance and the intercompany advance on the Company's property from $400,000 to $825,000. The Court hearing took place on December 16, 2025, and the Court granted the relief sought. Copies of pleadings can be found below.

On January 30, 2026, the Company made an application to Court to approve, among other things, to extend the deadline to file a proposal from February 7, 2026 to March 24, 2026, and to approve an increase in the maximum amount of intercompany advance on the Company's property from $825,000 to $1,285,000. The Court hearing took place on February 3, 2026, and the Court granted the relief sought. Copies of pleadings can be found below.

On March 20, 2026, the Company made an application to Court to approve, among other things, to extend the deadline to file a proposal from March 24, 2026 to April 10, 2026, and to approve an increase in the maximum amount of intercompany advance on the Company's property from $1,285,000 to $1,810,000. The Court hearing took place in Vancouver on March 24, 2026, and the Court granted the relief sought. Copies of pleadings can be found below.

On April 10, 2026, the Company filed a proposal (the “Initial Proposal”) to its creditors pursuant to subsection 50.(1) of the Bankruptcy and Insolvency Act R.S.C. 1985, c. B-3 (the “BIA”). The Initial Proposal was electronically filed with the Official Receiver on the same day. A copy of the Initial Proposal can be found below.

On April 17, 2026, the Company filed an amended proposal (the “Proposal”) to its creditors. A copy of the Proposal, as well as a copy of the blackline showing the changes from the Initial Proposal to the Proposal can be found below.

On April 29, 2026, the Company filed a further amended proposal (the "Further Amended Proposal"). A copy of the Further Amended Proposal, as well as a copy of the blackline showing changes from the Proposal to the Further Amended Proposal can be found below.

The First Meeting of Creditors to consider the Proposal was held on April 30, 2026 at 10:00AM PST via video conference call. The Further Amended Proposal was accepted by the requisite majority of creditors (as required in the BIA) at the First Meeting of Creditors.

On May 5, 2026, the Proposal Trustee filed its Report to Court on the Company’s Proposal. On or around the same day, the Proposal Trustee made an application to Court to among other things, implement and complete the Further Amended Proposal. The hearing is scheduled to take place at 9:45am on June 4, 2026. A copy of the Report to Court on the Company’s Proposal and the Notice of Application are below.