Joshua Foster

The applicants, Xplore Inc. and a wholly-owned subsidiary, sought a final order approving a plan of arrangement under the Canada Business Corporations Act (CBCA).

The arrangement aimed to implement a comprehensive recapitalization transaction to significantly deleverage the company's secured debt and secure new financing.

A key component of the plan was a reverse vesting order (RVO) to separate uneconomic satellite business obligations from the ongoing operations.

The court found that the arrangement met all statutory requirements, was proposed in good faith, and was fair and reasonable to all stakeholders, including the initially opposing satellite providers who reached a commercial resolution.

The court also confirmed its jurisdiction under s. 192(4) of the CBCA to grant an RVO and approved the inclusion of third-party releases.

The applicant brought a consent motion within its CCAA proceedings for approval of Sale Procedures and an extension of the Stay Period.

The court found the applicant acted in good faith and with due diligence, and granted the motion, extending the Stay Period to December 22, 2021, and setting a bid deadline of December 31, 2021.

The applicant, McEwan Enterprises Inc., sought an Amended and Restated Initial Order at a comeback hearing in its CCAA proceedings to extend the stay period and increase the administration and directors' charges.

A creditor opposed the motion, arguing the applicant should not be allowed to continue without a court-approved marketing and sale process and raising concerns about a proposed transaction.

The court granted the requested relief to allow the applicant to continue operations, finding the creditor's concerns raised arguable issues that were more properly addressed at an upcoming motion to approve the proposed transaction.

McEwan Enterprises Inc. (MEI), a restaurant and catering business, applied for an Initial Order under the CCAA due to financial challenges exacerbated by the COVID-19 pandemic.

The court found MEI to be a 'debtor company' under the CCAA and granted the Initial Order, including a stay of proceedings, authorization to pay certain pre-filing obligations, and the approval of Administration and Directors' Charges.

The court also extended the stay of proceedings to non-filing parties, including the founder Mark McEwan, to prevent disruption to the restructuring efforts.

However, the court declined MEI's request to dispense with the standard CCAA creditor notice provisions, citing the open court presumption.

The applicants, affiliated companies in the oil and gas sector, sought approval of a reverse vesting order (RVO) under the Companies' Creditors Arrangement Act.

The RVO was opposed by several municipalities because it would extinguish significant outstanding municipal tax liabilities.

The court approved the RVO, finding that it met the requirements of section 36 of the CCAA and the Soundair principles.

The court concluded that the RVO was the only commercially viable alternative to a bankruptcy, which would have disastrous consequences for all stakeholders and leave no funds for environmental obligations or municipal taxes.

The applicant, a secured creditor and shareholder of the respondent, applied to appoint a receiver over the respondent's assets, which primarily consisted of patents for waste-to-energy technology.

A founder and shareholder of the respondent moved to stay the application, arguing the dispute over the validity of the applicant's security should be arbitrated under a unanimous shareholder agreement.

The court dismissed the motion to stay and granted the receivership application, finding that the respondent lacked funds to maintain its patents or participate in arbitration, and a court-appointed receiver was necessary to preserve the intellectual property and determine creditor priorities.