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The court clarified that its prior standstill endorsement did not apply extra-jurisdictionally to block a judicially authorized property sale in Quebec.
This endorsement addresses the scope and effect of a prior scheduling order regarding the sale of properties subject to a blanket mortgage, clarifying that the Ontario court’s direction did not extend to properties outside Ontario or interfere with a Quebec court’s order authorizing a sale in Montreal.
The court emphasizes the limits of its jurisdiction and the principles of comity and deference to other courts, particularly in the context of cross-jurisdictional property disputes.
CCAA supplier exception does not permit payment for pre‑filing implementation services.
A supplier sought specific performance of a master services agreement during proceedings under the Companies’ Creditors Arrangement Act, arguing that deferred implementation fees constituted payment for post‑filing licensed software use and therefore fell within the supplier payment exception in s. 11.01(a).
The court examined the contractual structure separating implementation services from ongoing outsourcing services and held that the implementation fee related to historical system development completed before the CCAA initial order.
Because the services associated with the implementation fee were performed pre‑filing, the claim constituted a pre‑filing debt subject to the stay of proceedings.
The exception in s. 11.01(a) applies narrowly and only to goods or services provided after the initial order.
The motion seeking payment of deferred implementation fees and related amounts was dismissed.
