This endorsement addresses a motion by the City of Toronto and Adam Vaughan, creditors of 1631651 Ontario Inc., seeking an order that the assignment in bankruptcy does not take precedence over a prior order for payment and directing the Accountant to release funds to their counsel.
The court reviews the application of section 70(1) of the Bankruptcy and Insolvency Act and considers relevant case law from other jurisdictions and Ontario.
The motion is adjourned to allow further submissions on Ontario authorities.
