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.
