A. MacFarlane

The applicants sought continuation of insolvency proceedings from a Notice of Intention to make a proposal under the Bankruptcy and Insolvency Act into proceedings under the Companies’ Creditors Arrangement Act.

The court considered whether the statutory requirements for continuation were satisfied and whether interim restructuring relief, including DIP financing, priority charges, and a stay of proceedings, should be granted.

The court found the debtor companies were insolvent and that continuation under the CCAA would stabilize operations, preserve employment, and maximize recovery for stakeholders.

The court approved DIP financing with a super‑priority charge, granted administration and director charges, authorized payment of critical suppliers, and ordered substituted service and sealing of confidential financial information.

The applicant debtor sought an urgent order appointing an interim receiver under s. 47.1 of the Bankruptcy and Insolvency Act during a Notice of Intention to Make a Proposal proceeding.

The motion requested authority for the interim receiver to borrow up to $1.5 million on a super‑priority basis to fund payroll and contractor obligations in order to maintain business operations.

The court held that the appointment was necessary to protect the debtor’s estate and the interests of creditors.

It further concluded that a super‑priority borrowing charge was appropriate despite the absence of explicit statutory authority for such financing in relation to interim receivers, relying on the court’s inherent jurisdiction.

The charges were granted with priority over construction lien and trust claims to avoid operational shutdown and preserve restructuring prospects.