Geoffrey B. Morawetz

This decision concerns three motions to approve class counsel fees in the context of insolvency proceedings under the Companies' Creditors Arrangement Act involving three major tobacco companies.

The court approved the Quebec Class Action Plaintiffs' counsel fee request of approximately $901 million (representing 22% of the $4.119 billion allocated to the Quebec class members), the Knight Class Counsel fee request of $5 million plus disbursements, and the Tobacco Producers' counsel fee request of $3.75 million.

The court found that the fees were fair and reasonable given the exceptional risks assumed, the unprecedented outcome achieved, and the unique circumstances of the case.

A $50 million reserve was established from the Quebec counsel fees to protect against any pro-rata reduction in class member compensation due to actual take-up rates or other factors.

This endorsement concerns an unopposed motion by Yellow Corporation, as Foreign Representative, seeking recognition and enforcement in Canada of a U.S. Bankruptcy Court order approving the termination of certain Canadian real property leases (the "Reimer Leases") as part of cross-border insolvency proceedings under the Companies’ Creditors Arrangement Act.

The court finds the negotiated lease termination agreement to be fair and reasonable, maximizes value for the debtors, and grants the requested relief, including recognition of the U.S. order and authorization for related asset transfers.

This decision sanctions the CCAA Plans of Imperial Tobacco Canada Limited, Imperial Tobacco Company Limited, JTI-Macdonald Corp., and Rothmans, Benson & Hedges Inc., effecting a global settlement of all tobacco-related claims in Canada.

The court reviews the structure, allocation, and fairness of the plans, including the creation of a $1 billion Cy-près Foundation, and addresses objections from social stakeholders.

The court finds the plans fair, reasonable, and in the public interest, and grants the requested relief, including third-party releases and the appointment of plan administrators.

This endorsement addresses motions by the court-appointed Monitors in the ongoing Companies’ Creditors Arrangement Act (CCAA) proceedings involving JTI-Macdonald Corp., Imperial Tobacco Canada Limited and Imperial Tobacco Company Limited, and Rothmans, Benson & Hedges Inc. The Monitors sought approval for amendments to the CCAA Plans to resolve the allocation of a $750 million working capital holdback among the Tobacco Companies.

The only opposition came from the Heart and Stroke Foundation, which objected as a social stakeholder but was found to lack standing.

The court granted the motions, finding the amendments did not adversely affect any creditors and were appropriate in the circumstances.

The Receiver sought and obtained an Approval and Vesting Order (AVO) in connection with a settlement involving the sale of certain secured interests (the Maidstone Charges) and related indebtedness to the Canning Claimants.

The settlement resolved a $50 million claim in the receivership proceedings.

The court found the transaction fair, reasonable, and beneficial to stakeholders, and granted a limited sealing order over confidential economic terms of the transaction until closing, applying the test from Sherman Estate v. Donovan.

The Applicants sought an order extending the Stay Period under the Companies’ Creditors Arrangement Act, approving the Sixty-first Report of the Monitor, and approving the fees and disbursements of the Monitor, Monitor’s counsel, and Applicant’s counsel.

The court found the Applicants acted in good faith and with due diligence, that the extension was reasonable, and that the requested approvals were appropriate.

The motion was granted.

This endorsement concerns ongoing insolvency proceedings under the Companies’ Creditors Arrangement Act (CCAA) involving JTI-Macdonald Corp., Imperial Tobacco Canada Limited, Imperial Tobacco Company Limited, and Rothmans, Benson & Hedges Inc. The specific motion, brought by the applicants, sought a Quebec Class Action Plaintiffs Notice Protocol Order.

The motion was unopposed and was granted by the court, with the requested order signed.

The applicant, Rothmans, Benson & Hedges Inc., brought an unopposed motion for an insurance settlement and bar order under the Companies’ Creditors Arrangement Act.

The court found that the record supported the requested relief and granted the motion.

This endorsement concerns a joint motion brought by the court-appointed Monitors for JTI-Macdonald Corp., Imperial Tobacco Canada Limited, Imperial Tobacco Company Limited, and Rothmans, Benson & Hedges Inc. in their ongoing Companies’ Creditors Arrangement Act (CCAA) proceedings.

The Monitors sought a Sanction Protocol Order to establish the date for the Sanction Hearing, ratify the litigation timetable, approve the dissemination of the Agenda and Sanction Hearing procedure, approve the Omnibus Sanction Hearing Notice, and set the deadline for Sanction Hearing Objection Notices.

The motion was unopposed and was granted by the court, with three orders signed.

The Québec Class Counsel sought an interlocutory injunction against Actis Law Group and its principal, Andrea Grass, to prevent them from advertising legal services and soliciting retainers from Québec Class-Action Plaintiffs (QCAP) in the ongoing tobacco CCAA insolvency proceedings.

The court granted the injunction, finding a serious issue to be tried, irreparable harm to the orderly resolution of the CCAA proceedings and potential confusion for vulnerable claimants, and that the balance of convenience favored the injunction.

The court also waived the requirement for an undertaking from the moving party.

This endorsement addresses an interlocutory injunction motion within the ongoing Companies' Creditors Arrangement Act (CCAA) insolvency proceedings of three major tobacco companies.

Representative counsel for the Pan-Canadian Claimants sought to enjoin Actis Law Group and its principal from advertising legal services and soliciting retainers from claimants.

The court granted the injunction, finding that the three-part test for interlocutory injunctions (serious issue, irreparable harm, balance of convenience) was met.

The court emphasized that Actis's actions risked confusing vulnerable claimants and undermining the equitable and orderly resolution of the CCAA proceedings, particularly given that the court-appointed class counsel and a specially crafted compensation plan already provide services to claimants at no cost.

This supplementary endorsement addresses a request from JTI-Macdonald Corp. regarding the adequacy of notice elements in the Claims Procedure Order within the ongoing Companies' Creditors Arrangement Act (CCAA) proceedings.

The court confirmed its satisfaction that the notice elements in the Claims Procedure Orders are reasonable in the circumstances, addressing an oversight from previous submissions.

The Superior Court of Justice addressed multiple motions within the complex Companies’ Creditors Arrangement Act (CCAA) proceedings of JTI-Macdonald Corp., Imperial Tobacco Canada Limited, Imperial Tobacco Company Limited, and Rothmans, Benson & Hedges Inc. The court granted a stay extension until January 31, 2025, and approved Meeting Orders and Claims Procedure Orders.

These orders facilitate the advancement of comprehensive Plans of Arrangement, developed by the court-appointed Mediator and Monitors, aiming for a Pan-Canadian global settlement of tobacco claims totaling $32.5 billion.

The court found the plans were not "doomed to fail" despite outstanding issues regarding financial allocation among the Tobacco Companies and the creditor status of JTI-Macdonald TM Corp.

The Monitor of the Applicants in a Companies’ Creditors Arrangement Act (CCAA) proceeding brought a motion to extend the Stay Period to allow Remaining Estate Actions to proceed and to continue administering the Plan.

The court reviewed the Monitor's Thirty-Fourth Report and submissions, finding that the Applicants continued to operate in good faith and with due diligence.

The motion was granted, extending the Stay Period until September 29, 2025, to allow for the determination of the Remaining Estate Actions.

This motion was brought by BBB Canada Ltd. to terminate its Companies' Creditors Arrangement Act (CCAA) proceedings.

The applicant sought orders to terminate the CCAA proceedings, discharge the Monitor, terminate and discharge various charges, grant releases to specified parties, and approve the Monitor's numerous reports, actions, and fees.

The motion was unopposed.

The court found that the CCAA proceedings were nearly complete, with all major transactions finalized and claims paid.

The court was satisfied that the proceedings should be terminated, the Monitor's reports and activities approved, and the requested fees and releases granted, noting the significant contributions of the released parties and the limited scope of the releases.

Yellow Corporation, as Foreign Representative for its affiliates (including Canadian Debtors), brought a motion for recognition and enforcement of a U.S. Bankruptcy Court order (the "Lienholder Rolling Stock Settlement Order").

This U.S. order approved settlement agreements with possessory lienholders regarding rolling stock assets, which resulted in a waiver or reduction of claims against the Debtors' estates in exchange for surrendering title of the assets.

The motion was unopposed and supported by the Information Officer.

The court granted the recognition order, finding it fair, reasonable, and appropriate, and beneficial to the Debtors and stakeholders, consistent with principles of comity and cooperation in cross-border insolvency.

The Applicants, Pride Group Holdings Inc. and related entities, sought an initial order under the Companies’ Creditors Arrangement Act (CCAA) due to a severe downturn in the trucking and logistics industry, leading to a liquidity crisis and lender enforcement actions.

The court granted the initial order, which included a stay of proceedings for the Pride Group, its limited partnerships, additional stay parties, and personal guarantors.

The order also approved the appointment of a Monitor and Chief Restructuring Officer (CRO), authorized certain pre-filing and post-filing payments, and granted Administration and Directors' Charges without super priority.

The court addressed the appointment of foreign representatives and a sealing order for the unredacted CRO Engagement Letter, partially granting the sealing request while requiring monthly fees to remain public.

The Monitor of The Cash Store Financial Services Inc. and related entities brought a motion seeking an extension of a stay of proceedings to October 25, 2024, under the Companies’ Creditors Arrangement Act.

The Monitor's Thirty-Third Report detailed the status of remaining estate actions and confirmed sufficient liquidity to fund activities.

The motion was unopposed and granted, with the court satisfied that the parties were acting in good faith and with due diligence.

This endorsement concerns three tobacco companies (JTI-MacDonald Corp., Imperial Tobacco Canada Limited, Imperial Tobacco Company Limited, and Rothmans, Benson & Hedges Inc.) operating under the Companies’ Creditors Arrangement Act (CCAA).

Each applicant sought an extension of their stay period until September 30, 2024, to continue formulating plans of arrangement.

Imperial also requested authorization to terminate a retirement plan and post security for a vaping product license.

RBH sought a procedural amendment for employee grievances.

The court, finding no opposition and satisfied with the applicants' good faith, diligence, and sufficient resources, granted all requested relief, noting significant progress in ongoing mediation.

The Applicants, Nordstrom Canada Retail, Inc., Nordstrom Canada Holdings, LLC, and Nordstrom Canada Holdings II, LLC, sought a Sanction and Vesting Order to approve their Consolidated Plan of Compromise and Arrangement under the Companies’ Creditors Arrangement Act (CCAA) and to extend the Stay Period.

The court found that all statutory requirements were met, the plan was authorized by the CCAA and prior orders, and the plan was fair and reasonable, including the proposed third-party releases.

The motion was unopposed.

The court granted the Sanction and Vesting Order and extended the Stay Period.