Bruce Darlington

The Applicants, part of the Lydian Group which owns a development-stage gold mine in Armenia, sought an order sanctioning their Plan of Arrangement under the CCAA.

The Plan, supported by the Monitor and the requisite majority of secured creditors, provides for the privatization of the Lydian Group and the release of existing indebtedness to Senior Lenders.

The court found the Plan to be fair and reasonable, noting that while equity claimants would receive no compensation, this reflected the economic reality of the insolvency.

The court also approved third-party releases, an increase to the DIP charge, an extension of the stay period, a sealing order for commercially sensitive information, and the Monitor's activities and fees.

The applicant in a receivership proceeding sought approval of its counsel's fees to be paid from an administration charge.

The Attorney General opposed, arguing that the fees should only cover work related to the receivership and not the concurrent forfeiture proceedings.

The court rejected this distinction, finding that the forfeiture application created barriers to the sale of the business that counsel had to address.

The court found the fees reasonable and approved them.