Growthworks Canadian Fund Ltd. obtained protection under the CCAA.
Allen-Vanguard Corporation (AVC), a contingent creditor claiming $650 million for fraudulent misrepresentation related to a share purchase agreement, moved to lift the CCAA stay of proceedings to continue its civil action against Growthworks in Ottawa.
Growthworks brought a competing motion for a mini-trial within the CCAA proceeding to determine two threshold issues regarding AVC's claim.
The court deferred the disposition of both motions to the forthcoming motion to extend the stay period, directing the parties to file additional evidence regarding the necessity and proportionality of the proposed CCAA claims process versus lifting the stay.
