Daniel Richer

In the context of CCAA proceedings, the applicants sought a Funding Order to compel Securitization Parties and other secured lenders to fund a $40 million wind-down of the remaining entities.

The court dismissed the motion for the Funding Order, finding that section 11.01(b) of the CCAA expressly prohibits orders requiring the further advance of money or credit.

Consequently, the court also declined to approve a Key Employee Retention Plan, as it was dependent on the unavailable funding.

The court did, however, grant a temporary sealing order for the KERP details and extended the stay of proceedings to November 29, 2024.

In the context of ongoing CCAA proceedings, the applicants and various equipment financiers reached an impasse regarding the wind-down plan and a proposed going-concern sale of the logistics business.

The applicants sought a monetization order, an increase in the administration charge, and lien regularization, which were unopposed and granted by the court to maintain operations.

Due to significant disputes over the sale and liquidation of assets, the court adjourned the contested motions, including several lift-stay motions brought by creditors, and ordered the parties to attend mandatory mediation before a former Commercial List judge.

Voyager Digital Ltd. applied under Part IV of the CCAA for an Initial Recognition Order of its Chapter 11 proceedings in the United States.

The central issue was whether the US proceeding should be recognized as a 'foreign main proceeding' or a 'foreign non-main proceeding', which depended on determining the company's Centre of Main Interests (COMI).

Despite being incorporated in British Columbia and listed on the TSX, the court found that the company's COMI was in the US, where its operations, management, and principal assets were located.

The court recognized the US proceeding as a foreign main proceeding and granted the requested stay.

The respondent sought partial indemnity costs of $144,054.57 following a successful application.

The applicants argued for no costs, asserting the matter was a case of first impression, or alternatively $30,000.

The court held that costs should follow the cause because the parties were advancing private financial interests rather than a public interest.

Applying the Boucher principles, the court found the respondent's time spent was excessive compared to the applicants' and reduced the requested fees by approximately 40 percent, fixing costs at $75,000 plus HST and disbursements.

The applicant tenant, Old Navy, sought a declaration that a co-tenancy failure occurred under its commercial lease following the bankruptcy of another tenant, Danier Leather, entitling it to pay significantly reduced alternative rent.

The respondent landlord argued the lease provisions were ambiguous and that a co-tenancy failure required a catastrophic loss of tenants, not just one small retailer.

The Superior Court of Justice dismissed the tenant's application, finding its strict literal interpretation led to a commercial absurdity and violated principles of business efficacy.

The court granted the landlord's request for rectification, amending the lease to include a reciprocal termination right that had been agreed upon in the letter of intent but omitted from the final lease by mutual mistake.