The motion concerned the terms of a judicially supervised sale of a limited partnership or its underlying real estate asset, following the respondent's failure to complete a purchase of the applicant's interest as previously ordered by the court.
Key contentious issues included whether the sale should be limited to arm's-length purchasers, the composition and disclosure of a "Floor Amount" (minimum sale price), the applicant's right to a credit bid, the consequences if the Floor Amount was not met, and the appropriate prejudgment interest rate.
The court ruled that both parties could participate in the bidding, the Floor Amount should not include the respondent's capital contributions but should include the applicant's post-default development costs, the Floor Amount should not be disclosed to bidders, and prejudgment interest should be 12% due to the respondent's conduct.
The court also granted a temporary sealing order for the file and reasons until the sale was completed.
