On an ex parte application under s. 3 of the Bulk Sales Act, the applicants sought an exemption from the Act for a financing transaction involving the sale of certain equipment leases and related assets to a limited partnership.
The court considered whether the transaction constituted a “sale in bulk” outside the ordinary course of business.
While expressing doubt that the transaction fell within the type of asset disposition targeted by the Act, the court proceeded to analyze the exemption request.
Finding that the transaction would be advantageous to the applicants and would not impair their ability to pay creditors, the court granted the exemption for the proposed transaction only.
The court declined to grant any blanket exemption for future transactions and directed that any subsequent application be brought on notice to the Attorney General of Ontario.
