John T. Porter

The appellants, unsecured creditors, appealed orders sanctioning a plan of arrangement under the Companies' Creditors Arrangement Act (CCAA) and awarding costs against them.

The plan effectively eliminated any recovery for unsecured creditors, as the secured claims (over $60 million) far exceeded the maximum estimated value of the debtor's mining assets ($19.9 million).

The Court of Appeal dismissed the appeal, finding no error in the motion judge's acceptance of the asset valuation or his conclusion that the plan was fair and reasonable.

The Court also upheld the costs award, noting the appellants' opposition lacked a realistic basis.