Josh Sloan

This decision concerns the approval of a plan of arrangement under section 192 of the Canada Business Corporations Act for Sherritt International Corporation and 16743714 Canada Inc. The plan involves the exchange and restructuring of certain debt obligations, including Senior Secured Notes and Junior Notes, to stabilize the company’s financial position.

The court reviews the statutory and fairness requirements for approval, considers objections, and ultimately finds the arrangement fair and reasonable, granting the final order.

The applicants, Sherritt International Corporation and 16743714 Canada Inc., applied under section 192 of the Canada Business Corporations Act for an interim order to facilitate a proposed plan of arrangement to restructure their debt obligations.

The proposed transaction involves exchanging existing senior secured and junior notes for amended senior secured notes with extended maturities and reduced principal amounts.

The court found that the applicants met the statutory requirements, acted in good faith, and that the proposed voting mechanics and early consent incentives were fair and reasonable.

Accordingly, the court granted the interim order, directing the applicants to hold meetings for noteholders to vote on the plan and imposing a limited stay of proceedings to protect the business during the process.