Christopher Burr

The appellant appealed an interlocutory order of the Superior Court refusing to order payment into court of a "costs reserve." The Court of Appeal held it lacked jurisdiction over the appeal, characterizing the order as interlocutory and akin to an order dismissing a motion for security for costs.

The court directed that an appeal from such an order must be brought to the Divisional Court, with leave.

Costs were awarded to the respondents in the agreed amount of $7,500 all inclusive.

The court dismissed Farm Credit Canada's application for the appointment of a receiver over the assets of Kapital Produce Ltd. and related companies.

The court found that, although there were alleged events of default under the credit agreement, most were cured within the required period and did not constitute actionable defaults.

The court held that the appointment of a receiver was not just or convenient in the circumstances, given the significant value of the security held by FCC, the lack of evidence of irreparable harm or risk to the assets, and the Debtors' ongoing efforts to resolve the indebtedness.

The decision concerns the approval of a reverse vesting order (RVO) in the context of insolvency proceedings under the Companies' Creditors Arrangement Act (CCAA).

The Court-appointed Monitor sought approval for a transaction involving the sale of all shares of the Purchased Companies to North Mill Equipment Finance LLC, the granting of related releases, a sealing order, and an extension of the stay of proceedings.

The court reviewed the necessity and fairness of the RVO structure, the process leading to the transaction, and the impact on stakeholders, ultimately granting the relief sought.

This decision concerns motions brought by Pride Group Holdings Inc. and related applicants under the Companies' Creditors Arrangement Act (CCAA) for interim relief in their restructuring proceedings.

The court addresses requests for approval of interim distributions, payment of direct costs, application of deferred payments for working capital, and approval of certain activities of the Monitor.

The court grants the requested relief, finding it necessary to maintain liquidity and continue the wind-down process, and holds that the proposed mechanisms are equitable and consistent with the CCAA’s remedial objectives.

CS Capital Limited, a secured creditor and mortgagee, brought a motion seeking a declaration that its mortgage had priority over construction lien claims on a property.

The court dismissed the motion, finding that the mortgage was not registered prior to the time the first lien arose in respect of the overall improvement project.

Furthermore, the court determined that the mortgage was a collateral mortgage securing a guarantee of a separate debt, and therefore no "advance" was made in respect of it for the purposes of priority under the Construction Act.

In a CCAA proceeding, the Applicants sought three orders: approval of a factoring portfolio purchase agreement, approval for distribution of proceeds from a property sale, and permission for a creditor to sell certain vehicles.

The court approved the distribution of Chehalis property proceeds to Roynat.

For the Regions vehicles, the court granted the order allowing Regions to take possession, setting a 30-day retrieval period and approving storage costs of $35/day.

The motion for approval of the JD Factors Purchase Agreement was adjourned to a later date, as Mitsubishi HC Capital Canada Inc. objected, claiming ownership of the receivables and requiring more time to prepare its position.

In a Companies' Creditors Arrangement Act (CCAA) proceeding, the applicants sought court approval for the sale of a real property, the Monitor's reports, a revised governance protocol, and a sale and investor solicitation process (SISP) for their logistics business.

The court approved the property sale, finding it met the Soundair Principles despite not being a court-supervised process.

The Monitor's reports and activities were also approved.

The proposed SISP was approved with a minor amendment requiring the Monitor to consult directly affected secured creditors.

The Revised Governance Protocol, which included default commission rates for vehicle sales and collections, was approved as an interim measure, balancing the need for cost recovery with creditor concerns, noting that financiers could negotiate alternative rates or withhold consent to sales.

This endorsement concerns a motion brought by Pride Group Holdings Inc. and other applicants under the Companies' Creditors Arrangement Act (CCAA).

The applicants sought court approval for three main items: a pre-filing agreement of purchase and sale for the Bolingbrook Property, approval of the Monitor's First and Second Reports, and an amendment to the Amended and Restated Initial Order to allow the sale of redundant, surplus, or non-material property up to certain financial thresholds without further court approval.

The court, applying the Soundair Principles, found the pre-filing sale to be in the best interests of stakeholders, noting the extensive negotiations and lack of opposition.

All requested relief was granted, with the court emphasizing the practical benefits of the proposed amendments for maximizing recovery and minimizing professional fees.

The appellant appealed a judgment finding that a security interest granted by the appellant's predecessor was oppressive to the respondents.

The Court of Appeal dismissed the appeal, finding no reversible error in the application judge's conclusion that the granting of the security interest was oppressive.

The court affirmed that the application judge's findings aligned with the two requirements for an oppression remedy claim, specifically that the respondents had a reasonable expectation that the appellant's predecessor would not act prejudicially, and that this expectation was violated by corporate conduct that was oppressive or unfairly prejudicial.

The applicant, 1261271 B.C. Ltd., sought a declaration that its security interest in the assets of the respondents was valid and enforceable.

This security interest arose from a secured loan provided to satisfy existing unsecured loans.

The respondents argued the security was a collateral attack on a prior court order (the 'Gilmore Order') which had unwound a corporate reorganization, and that it constituted a fraudulent preference and fraudulent conveyance.

The court dismissed the application, finding the 2021 Security invalid as it amounted to a collateral attack on the Gilmore Order and was a fraudulent conveyance.

The court also noted that the security was invalid to the extent it purported to secure indebtedness of a non-FIT 2 entity (Enviro Park) to the 1784 Parties.

Santokh Mahal sought a declaration that his security interest in Golden Miles Food Corporation's personal property was valid and had priority, securing $2,182,914 in advances.

The Applicant, Skymark Finance Corporation, and the Receiver, KSV Restructuring Inc., opposed the motion.

The court granted Mahal a secured claim for $281,600, representing direct personal advances, but dismissed the remaining $1,901,314 claimed for advances made by corporations controlled by Mahal.

The court found that these corporate advances were not indirect debts secured by Mahal's General Security Agreement due to insufficient documentation and lack of PPSA registration by the advancing corporations.

Her Majesty the Queen in right of Ontario sought to lift a stay on its $330 billion health care cost recovery action against three tobacco companies (JTI-Macdonald Corp., Imperial Tobacco, Rothmans, Benson & Hedges Inc.) and eleven co-defendants, which was imposed under CCAA proceedings.

Ontario proposed to temporarily stay the effects of any judgment.

The court dismissed the motion, emphasizing the need to preserve the status quo in CCAA proceedings to facilitate a global resolution of significant claims.

Allowing Ontario's action to proceed would alter the level playing field, distract from restructuring efforts, and impose significant costs, prejudicing other stakeholders.

JTI-Macdonald Corp. (JTIM) sought an Initial Order under the Companies’ Creditors Arrangement Act (CCAA) following a $13.5 billion judgment from the Quebec Court of Appeal and other significant health care costs recovery actions.

The court granted the Initial Order, including a stay of proceedings against JTIM and other defendants, appointment of Deloitte Restructuring Inc. as Monitor, approval of administrative, directors', and tax charges, authorization to pay pre-filing and post-filing obligations, appointment of Blue Tree Advisors Inc. as Chief Restructuring Officer, and authorization to appeal the Quebec Judgment to the Supreme Court of Canada.

The court found JTIM to be an insolvent company to which the CCAA applies, and that a stay of proceedings was appropriate to facilitate a collective solution for all stakeholders.

The applicant, Zochem Inc., applied under Part IV of the CCAA for recognition of First Day Orders made by the U.S. Bankruptcy Court in Chapter 11 proceedings.

The court found that the U.S. proceeding was a foreign main proceeding, as the debtors were managed as an integrated group from the United States, despite Zochem's operations being in Ontario.

The court also recognized the interim financing order and granted a super-priority charge for the DIP lender, noting that the interim advance was necessary to meet payroll and that the directors must act in the best interests of the Canadian corporation.

A court‑appointed receiver sought approval of bidding procedures and a sales process for a distressed technology company, including the use of a stalking horse credit bid by the senior secured lender.

The receiver also sought confirmation of the priority of the receiver’s charge and borrowings charge over existing security interests and approval of its activities to date.

The court applied the Soundair principles in assessing the fairness, transparency, and commercial efficacy of the proposed sales process.

Given the debtor’s lack of liquidity and the need for a rapid process, the court approved the stalking horse structure, the auction procedures, and the expense reimbursement.

The court also granted priority to the receiver’s charges under the Bankruptcy and Insolvency Act and confirmed the receiver’s reported activities.