Lenders have unilateral right to extend the Outside Date in restructuring support agreement.
The applicants sought a declaration regarding the interpretation of the 'Outside Date' in a restructuring support agreement.
The respondent, a cannabis company, argued that any extension of the Outside Date required its initiation or consent.
The court found that the plain and ordinary meaning of the agreement allowed the lenders to automatically extend the Outside Date upon their written consent, acting reasonably, without the need for the respondent's consent.
The court granted the declaration sought by the applicants.
Gotham Green Partners, LLC et al. v. iAnthus Capital Holdings, Inc. et al., 2021 ONSC 6518