Goodlevel Enterprises Canada ULC, Proposal

Goodlevel Enterprises Canada ULC, a Hamilton, Ontario-based manufacturer and distributor of latex balloons, filed a proposal on August 13, listing nearly $4 million in liabilities, including approximately $3.3 million to Goodlevel Enterprises LLC, its US affiliate.

The company was established to acquire the assets of Pioneer Balloon Canada Limited as part of Pioneer’s insolvency proceedings commenced in 2024. The company had approximately 32 employees, all of whom were on temporary layoff as of filing date.

Over the past year, the company experienced liquidity challenges due to a number of factors including a shift in trade environment and operational and structural challenges post-asset acquisition of Pioneer. To address its cash flow challenges, the company undertook steps to reduce its cash burn (including reducing its workforce) and increase operational efficiency of production lines in an attempt to reduce scrap rates. Notwithstanding these efforts, the company’s liquidity challenges proved too much of a burden, and the company filed the proposal.

Under the proposal, if approved, the company will provide the proposal trustee a maximum of $325,000, which will be used to pay preferred claims in full (without interest). Any balance remaining will be distributed to unsecured creditors on a pro rata basis.

KPMG is the proposal trustee.