Jesse Mighton

The applicants, Xplore Inc. and 16029167 Canada Inc., sought a preliminary interim order under s. 192(4) of the CBCA to facilitate a comprehensive recapitalization transaction.

The applicants requested a stay of proceedings to prevent unsecured creditors, particularly satellite providers, from taking unilateral actions that could disrupt services to rural customers while definitive agreements were finalized.

The court granted the preliminary interim order, finding that the proposed transaction constituted an arrangement, the solvency requirement was met, and the stay was necessary to provide stability during negotiations.

In the context of the global insolvency of Nortel Networks, the UK Pension Claimants (UKPC) asserted multiple claims against the Canadian debtors (NNC and NNL).

The UKPC claimed for a contingent Financial Support Direction (FSD) under UK pension law, amounts under a Funding Guarantee and a Swift Guarantee, and remedies for oppression and unjust enrichment.

The court dismissed the FSD claim as too remote and speculative to constitute a provable claim in the CCAA proceedings.

The court also dismissed the claims under the Swift Guarantee, oppression, and unjust enrichment.

However, the court allowed the UKPC's claim under the Funding Guarantee, finding NNL liable for £339.75 million.