The Court of Appeal for Ontario dismissed the appeal of 170 Willowdale Investments Corp. regarding the distribution of proceeds from the sale of its hotel assets in receivership.
The appellant argued that Royal Bank of Canada (RBC), as an unsecured creditor with respect to the real property, should not receive a distribution from the net proceeds of the sale.
The court held that the Approval and Vesting Order (AVO) did not preclude payment to unsecured creditors after secured creditors were paid, and that the motion judge properly authorized the distribution to RBC, including for a loan not yet due, as there was no prejudice to the debtor.
