1 total
Leave to appeal CCAA plan sanction order denied where unsecured creditor failed to show serious and arguable grounds.
Randy Oram, an unsecured creditor and shareholder, sought leave to appeal an order sanctioning a secured-creditor-led plan of arrangement under the CCAA and a related vesting order.
The plan involved selling the debtor companies' assets to a new company owned by an affiliate of a secured creditor, leaving no recovery for unsecured creditors.
The Court of Appeal dismissed the motion for leave to appeal, finding no serious and arguable grounds.
The court held that a plan exclusively benefiting secured creditors and not continuing the debtor as a going concern is not necessarily contrary to the CCAA, especially where there is no equity for unsecured creditors and no viable alternative plan.
