The applicants sought a final order approving a proposed arrangement under section 192 of the Canada Business Corporations Act to effect a recapitalization transaction.
A group of Class B shareholders opposed the arrangement, arguing the dilution of existing shareholders to 1% of new shares was unfair.
The court found the arrangement was put forward in good faith, had a valid business purpose, and was fair and reasonable given the company's financial distress and the lack of viable alternatives other than CCAA proceedings.
The court also granted a sealing order over confidential exhibits containing third-party bids, finding disclosure would pose a serious risk to important commercial interests.
