SUPERIOR COURT OF JUSTICE – ONTARIO

COMMERCIAL LIST

RE: IN THE MATTER OF THE BANKRUPTCY OF 2046272 Ontario Inc. c.o.b. Global Group

AND:

RE: IN THE MATTER OF THE BANKRUPTCY OF Blue Cosmetics North America Inc.

BEFORE: D. M. Brown J.

COUNSEL:
J. Clark, for the Trustee, BDO Canada Limited

HEARD: October 24, 2013

REASONS FOR DECISION

I. Motions under BIA s. 164

I. Motions under BIA s. 164

1Subsequent to my Reasons of April 15, 2013 (2013 ONSC 2180), BDO Canada Limited, the trustee in bankruptcy of 2046272 Ontario Inc. c.o.b. Global Group and Blue Cosmetics North America Inc., attempted to conduct examinations under section 164 of the Bankruptcy and Insolvency Act. I granted further orders by handwritten endorsement dated July 19, 2013. The trustee now moves for further relief in both bankruptcies.

2Mr. Georges Barake: The trustee served a BIA s. 164 notice on Mr. Barake, who was represented by Toronto counsel, Mr. Nicholas Canizares. Subsequently, on June 17, a notice of examination of Mr. Barake, returnable in Montreal on July 16, was served on him and his counsel. At the request of Barake’s counsel, the examination was adjourned until July 31 in Toronto. On that date Barake’s counsel attended; Barake did not. Barake changed counsel to Mr. Daniel Ovadia. The trustee asked Ovadia for dates to re-schedule Barake’s examination. None have been offered.

3In light of his non-attendance on the July 31 examination, I order Barake to attend, at his own expense, on or before November 30, 2013, before an examiner in Toronto, for examination in respect of the affairs of both bankrupts, and I order Barake to pay to the trustee, within 30 days, costs thrown away of $500.00 for his non-attendance on July 31, 2013 and for this motion.

4Mr. Roy M. Ferneini: The evidence disclosed that Mr. Ferneini prepared financial statements for both bankrupts. Ferneini has failed to respond to a BIA s. 164 notice and did not attend at an examination scheduled by the trustee for July 16, 2013 for which he was given notice. I order Ferneini to attend, at his own expense, on or before November 30, 2013, before an examiner at a location determined by the trustee, for examination in respect of the affairs of both bankrupts, and I order Ferneini to pay to the trustee, within 30 days, costs thrown away of $500.00 for his non-attendance on July 31, 2013 and for this motion.

5Michael Kafenzakis: Mr. Kafenzakis appeared for a BIA s. 164 examination on July 15, 2013. He gave several undertakings: QQ. 173, 312, 342, 387, 390, 393 and 404. He has not provided answers to those undertakings. I order him to do so no later than November 30, 2013 and deliver up all documents required by the trustee’s BIA s. 164 demand. I also order Mr. Kafenzakis to pay to the trustee, within 30 days, costs of $500.00 for this motion.

6The costs ordered paid cover both bankruptcies and only require each person ordered to pay a total of $500.00 to the trustee.

7Rogers, Google and Data & Audio-Visual: The evidence filed by the Trustee that the persons who use or used the following IP address, telephone number and email addresses probably possess books, documents or records relating to the affairs of the bankrupts: IP address 99.242.231.35; telephone numbers 416.270.7485 and 647.710.2628; email addresses jungleboy2013@gmail.com and memobook2010@gmail.com. I grant the disclosure orders sought by the trustee against Rogers Communications Inc., Google Inc. and Data & Audio-Visual Enterprises Inc. in respect of those addresses and numbers.

II. Approval of the fees of the Trustee’s solicitor

II. Approval of the fees of the Trustee’s solicitor

8The Trustee also moved for directions regarding the taxation of its solicitor’s accounts in both bankruptcies - $94,251.12 is claimed in the bankruptcy of 2046272 Ontario Inc. and $56,668.76 in the bankruptcy Blue Cosmetics North America Inc. In each bankruptcy a representative of HSBC is the sole inspector. By email dated October 22, 2013 counsel for HSBC advised that its client did not oppose the requests for approval of fees. I have reviewed both accounts; they cover about one year’s worth of work. They are reasonable in the circumstances and I approve them.

9I have placed my fiat on draft orders in both bankruptcies. Counsel can pick up copies at the Commercial List Office and proceed to issue and enter the orders.

D. M. Brown J.