The appellants sought to lift a stay of proceedings under the CCAA to terminate long-term gas supply contracts with the insolvent respondent.
They argued the contracts were 'eligible financial contracts' (EFCs) under s. 11.1(1) of the CCAA, which would exempt them from the stay.
The Court of Appeal upheld the motion judge's dismissal, finding the contracts lacked the hallmarks of financial risk management required to be EFCs.
Furthermore, the court held that even if the contracts were EFCs, the appellants could not terminate them because the contract terms only allowed termination for non-payment, and the respondent was not in default.
