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.
