Benjamin Blay

The Proposal Trustee brought a motion for court approval of the amended joint proposal of Artiva Inc. and Livewell Foods Canada Inc. under s. 58 of the Bankruptcy and Insolvency Act, and a related plan of arrangement under the Canada Business Corporations Act.

The proposal was supported by the majority of creditors, but opposed by a dissenting creditor who sought an adjournment due to late delivery of proofs of claim.

The court denied the adjournment, finding the time to challenge claims for voting purposes had expired.

The court approved the proposal and arrangement, finding them viable, made in good faith, and likely to generate a superior recovery for creditors than bankruptcy.

The court-appointed Receiver sought approval of its first report and authorization to file an assignment in bankruptcy on behalf of the debtor, a farmer.

The debtor opposed the assignment, arguing he was protected as a farmer under section 48 of the Bankruptcy and Insolvency Act.

The court found that the debtor ceased to be a farmer upon the appointment of the Receiver and authorized the Receiver to file the assignment in bankruptcy due to the debtor's lack of cooperation and misrepresentations.

The debtor brought an application for court approval of its proposal under the Bankruptcy and Insolvency Act.

Two secured creditors opposed the proposal because it contained a clause releasing the debtor's principal from his personal guarantees.

The court refused to approve the proposal, finding that the release of the guarantor was not necessary for the restructuring and did not benefit the general body of creditors.

The court also found that the proposal lacked good faith as the release clause was not prominently disclosed.