The court considered a motion to approve a debtor proposal under the Bankruptcy and Insolvency Act after creditor approval.
It held the proposal terms were not reasonable because key records were not produced, the trustee could not provide an opinion on exclusion provisions, and the proposed structure risked prejudice to creditor recovery rights.
The court also found statutory grounds requiring security were proved and concluded the offered funding did not satisfy the required security threshold.
The motion to approve the proposal was dismissed to protect creditor interests and the integrity of the insolvency process.
