The appellants appealed a motion judge's order calculating the Amended DIP Deficiency in a CCAA proceeding.
They argued that an Accommodation Agreement required the respondents to contribute up to $2,000,000 of the deficiency before recourse could be had to the appellants' collateral.
The Court of Appeal dismissed the appeal, finding that the Accommodation Agreement did not require the respondent to forego recovery of its responsible amount and that it was entitled to look to the collateral held by the first secured creditors without first foregoing $2,000,000 of the money advanced pursuant to the DIP Facility.
