The RAM Group Inc.

In the matter of the Companies' Creditors Arrangements Act and in the matter of a plan of compromise or arrangement of TRG Services Inc., formerly The RAM Group Inc. / Le Groupe RAM Inc., RAM Computer Technologies, Inc., also known as The RAM Group USA Inc. and Channel Path Marketing Ltd. (Collectively "RAM")

On 29 June 2005 BDO Dunwoody Limited, was appointed as the Monitor of RAM under the Companies' Creditors Arrangement Act, R.S.C. 1985, c. C-36, as Amended, pursuant to an order of the Ontario Superior Court of Justice - Commercial List.

To access the available documentation and other information concerning these proceedings, please click on the links on the side menu bar.

Last Updated: November 27, 2012

What's New

November 27, 2012
A Court hearing was held on Thursday, November 22, 2012 before the Honourable Mr. Justice Campbell of the Ontario Superior Court of Justice (Commercial List) with respect to the finalization of these CCAA proceedings, including the approval for the issuance of a Final Dividend to proven creditors and the discharge of the Plan Administrator/Monitor. As outlined in the Monitor's Ninth Report (see Monitor's Reports section), BDO Canada Limited (formerly BDO Dunwoody Limited), in its capacity as Administrator of the Plan of Compromise and Arrangement of TRG intends to make a Final Dividend distribution under the Plan, representing $0.0451 for each $1.00 of the creditors' proven and accepted claims. With this final distribution, the total dividend distributions will represent $0.1951 for each $1.00 of the creditors' proven and accepted claims. The Final Dividend is expected to be issued before the end of the 2012. (see Monitor's Reports section).

January 27, 2009
BDO Dunwoody Limited, in its capacity as Administrator of the Plan of Compromise and Arrangement of TRG has issued a 2nd Interim Dividend distribution under the Plan, representing $0.05 for each $1.00 of the creditors' proven and accepted claims. With this distribution, the total interim dividend distributions to date represent $0.15 for each $1.00 of the creditors' proven and accepted claims. A schedule outlining the current status of creditors' claims and the dividends issued has also been posted, together with copies of the notices that were sent, which differ depending on the status of the creditors' claim (see Creditor's Claims section).

October 31, 2008
The Administrator is in the process of finalizing the last remain issues and in particular the claim of Canada Revenue Agency and associate Goods & Services Tax refund. It is anticipated that these proceedings will be wound-up before the end of the 2008 year with a small final dividend issued hopefully before December 24, 2008.

January 3, 2008
Former TRG employees whose interim dividend distribution has been withheld pending an Employment Insurance overpayment determination by Human Resources and Skills Development Canada ("HRSDC") may enquire about their claim status by calling the Employment Insurance enquiry line at 1-800-206-7218. Alternatively, individuals can obtain Employment Insurance information including their personal claim information and the status of any decisions through the internet by signing-up for on-line access at Service Canada&'s website: http://www1.servicecanada.gc.ca/en/ei/application/my_information_preamble.shtml

December 19, 2007
BDO Dunwoody Limited, in its capacity as Administrator of the Plan of Compromise and Arrangement of TRG has issued an Interim Dividend distribution under the Plan, representing $0.10 for each $1.00 of the creditors' proven and accepted claims. A schedule outlining the current status of creditors' claims and the dividends issued has also been posted, together with copies of the notices that were sent, which differ depending on the status of the creditors' claim (see Creditor's Claims section).

A Court hearing was held on Thursday, December 13, 2006 before the Honourable Mr. Justice Campbell of the Ontario Superior Court of Justice (Commercial List) with respect to 16 former TRG employees and their claims for termination and severance pay. As outlined in the Monitor's Eighth Report (see Monitor's Reports section), it was the Monitor's position that these 16 former employees were not entitled to termination or severance pay pursuant to the employment standards legislation. The Honorable Mr. Justice Campbell granted an Order expunging these former employees claims to termination and severance pay (see Court Orders section) effective December 17, 2007.

August 23, 2007
On Friday, August 3, 2007, in a final effort to try and resolve the issues with Cisco before it became a legal battle that could extend at least another year, TRG, the Monitor and Cisco (the "Parties") attended a mediation session before the Honourable Mr. Justice Morawetz. At the end of the mediation session, a settlement was reached between the Parties, which settled the Cisco Claim in its entirety in exchange for a proposed payment to Cisco of $700,000 (the "Settlement").

On August 17, 2007, the Honourable Mr. Justice Campbell by endorsement approved the Settlement and approved in principle TRG's Plan of Compromise and Arrangement dated January 31, 2006 (the "Plan") thereby leading the way for a distribution to the creditors in the near future.

On August 22, 2007, two Orders were issued by the Court putting into effect Mr. Justice Campbell's endorsement of August 17, 2007; an Order approving the Settlement (the "Cisco Settlement Order") and an Order sanctioning/approving the Plan (the "Final Order"). (see Court Orders section).

Any creditor or creditors who oppose the Settlement or the Plan must file their opposition with the Court and serve it upon the Parties no later than September 12, 2007 or such later date as the Court may allow.

June 25, 2007
On June 25, 2007 by endorsement, the Honorable Mr. Justice Campbell of the Ontario Superior Court of Justice (Commercial List) extended the Stay of Proceedings under the CCAA until September 30, 2007 (see Court Orders section).

May 28, 2007
The Monitor's Seventh Report was posted on this website (see Monitor's Reports section).The report was prepared in anticipation of a Court hearing (the date of which has yet to be set) to determine the extent of Cisco's security interest in the funds currently being held by the Monitor and by Prowis.

May 7, 2007
At the hearing before Honourable Mr. Justice Campbell on April 18, 2007, submissions were made by counsel relating to the extent of Cisco's security interest in funds currently being held by the Monitor and by Prowis Inc. ("Prowis"), in its capacity as CRO of TRG. During the hearing, one of the issues Mr. Justice Campbell raised was whether or not the general creditors of TRG may have been prejudiced by Cisco's delay, both in notifying the Monitor and TRG of its security interest in products sold by it to TRG and of bringing an application to permit it to register a financing statement under the PPSA. Mr. Justice Campbell also heard submissions by counsel on whether or not Cisco has a right to trace the proceeds, if any, from the sale of its products into the funds now held by the Monitor and by Prowis.

The hearing has been adjourned in order to permit counsel to make further submissions to Mr. Justice Campbell on both of the above matters. In addition, Mr. Justice Campbell extended the Stay of Proceedings under the CCAA until June 30, 2007 (see Court Orders section).

It is anticipated that the hearing before Mr. Justice Campbell will continue in early June.

March 9, 2007
At a hearing before the Honourable Mr. Justice Campbell on March 9, 2007, the stay of proceedings was extended to April 30, 2007 (see Court Orders section).

At this time, a further Court hearing is scheduled for April 18, 2007, at which time submissions will be made as to Cisco's entitlement, in its capacity as a secured creditor of TRG, to any funds currently being held by the Monitor and the CRO, in priority to the claims of the unsecured creditors.

February 6, 2007
On February 6, 2007 by endorsement, Mr. Justice Campbell of the Ontario Superior Court of Justice (Commercial List) extended the Stay of Proceedings under the CCAA until March 9, 2007(see Court Orders section).

Mr. Justice Campbell endorsement further established a revised process and schedule to address the issues concerning Cisco's secured claim, including the extent of Cisco's claim, Cisco's entitlement to tracing and marshalling, and the extent of costs to be awarded against Cisco pursuant to Mr. Justice Campbell's decision of November 3, 2006.

January 10, 2007
The Monitor's Sixth Report was posted on this website (see Monitor's Reports section)

On January 9, 2007 by endorsement, Mr. Justice Campbell of the Ontario Superior Court of Justice (Commercial List) extended the Stay of Proceedings under the CCAA until February 8, 2007(see Court Orders section).

November 22, 2006
On November 3, 2006, Mr. Justice Campbell of the Superior Court of Ontario released his decision relating to the proceedings taken by Cisco that it had a secured claim against the products that were supplied by it to TRG.

Mr. Justice Campbell found that Cisco had a valid security interest in the products that were supplied to TRG. However, the amount of Cisco's secured claim that would rank in priority to the claims of unsecured creditors of TRG has not yet been determined. Accordingly, unless the amount of Cisco's secured claim is settled, further legal proceedings will be required to determine the amount that Cisco is entitled to receive in its capacity as a secured creditor of TRG.

It is anticipated that discussions with representatives of Cisco and TRG will continue over the next few weeks. If this matter is not settled, Court proceedings to determine the amount of Cisco's secured claim will not likely be held until mid-January.

In the meantime, on or before November 30, 2006, TRG will be requesting an extension until January 31, 2007 of the expiry date of the CCAA proceedings.

October 19, 2006
A Court hearing was held on Monday, October 16, 2006 before the Honourable Mr. Justice Campbell of the Ontario Superior Court of Justice (Commercial List) with respect to Cisco's claim against TRG. Submissions were made by counsel for TRG, counsel for the Monitor, counsel for Cisco and counsel for Tech Data Canada Corporation ("Tech Data"). There were two issues that were the focus of Monday's hearing: the first issue to be determined was whether or not the agreement between Cisco and TRG created a security interest in the Cisco products supplied to TRG and the second issue to be determined relates to the priority of Cisco's claim over other creditors if the Court finds that Cisco is a secured creditor of TRG.

Mr. Justice Campbell advised counsel that the circumstances surrounding the case presented novel issues that needed to be carefully considered by him. He expects to release his decision and his reasons for his decision within the next few weeks.

Mr. Justice Campbell also extended the Stay of Proceedings under the CCAA that is currently in place until November 30, 2006.

August 22, 2006
The Sixth Extension Order dated 20 July 2006 which, inter alia, extended the Stay Period to October 31, 2006 was posted on this website (see Court Orders section).

August 16, 2006
On August 10, 2006, NexInnovations Inc. ("Nex") sought and obtained an Initial Order under the Companies Creditors' Arrangement Act (the "CCAA") permitting it to file with the Court and submit to its creditors a plan of compromise or arrangement (the "Plan"). Ernst & Young Inc. has been appointed as the monitor of Nex.

TRG Services Inc.("TRG"), formerly The RAM Group Inc., is a creditor in Nex's CCAA proceedings for the balance of the purchase price still owing by Nex and as set-out in the Letter Agreement between TRG and Nex dated June 29, 2005.

At this time, the Monitor has no information as to when the Plan will be filed by Nex and what percentage, if any, of the balance of the purchase price is likely to be recovered.

August 9, 2006
At the Court hearing for a determination of whether Cisco's claim should be treated as a secured claim or an unsecured claim under TRG's plan of arrangement, in view of the fact that Cisco had not registered a financing statement under the Personal Property Security Act prior to June 29, 2005, the Honourable Mr. Justice Campbell adjourned the hearing to permit counsel for the parties to prepare and make submissions to the Court as to whether Cisco holds a valid security interest in the products sold by it to TRG. Over the course of the next 4 - 6 weeks, counsel for TRG, the Monitor and Cisco will be required to produce any evidence available relating to this matter, with an anticipated Court hearing to make a determination of the issue ocurring as soon as possible thereafter.

July 20, 2006
At Court for the Plan sanctioning hearing, Cisco Systems Canada Co. ("Cisco") requested and the Court granted an adjournment of this Motion pending a hearing, scheduled for August 9, 2006, for a determination of the nature (secured vs. unsecured) of Cisco's Claim. The Court did however extend the stay period from July 28, 2006 to October 31, 2006.

July 17, 2006
The Monitor's Fifth Report, which inlcudes the Minutes of the Reconvened Creditors' Meeting, was posted on this website (see Monitor's Reports section).

Notices to Creditors

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Documents

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Creditors' Claims

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Monitor's Reports

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Claims Procedure

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Documents

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Contact Us

BDO Dunwoody Limited
123 Front Street West
Suite 1200
Toronto, Ontario M5J 2M2

Les Fulton
Tel: (416) 369-6128
Fax: (416) 865-0904
Email: ramgroup@bdo.ca

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