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Court approves DIP financing and interim charge under BIA despite secured creditor opposition.
A debtor company operating a glazing and glass manufacturing business brought a motion under s. 50.6 of the Bankruptcy and Insolvency Act seeking approval for debtor‑in‑possession (DIP) financing and an interim financing charge during notice of intention proceedings.
The secured creditor opposed the proposed financing, arguing that the company was not viable and that the charge would prejudice its security position.
The court considered the statutory factors under s. 50.6, including the likelihood of a viable proposal, the trustee’s report, the nature of the debtor’s assets, and potential prejudice to creditors.
Finding that the business would cease operations without interim funding and that the prejudice to the secured creditor was minimal relative to the benefits of continued operations, the court approved a first tranche of DIP financing and granted a corresponding interim financing charge.
Court approves settlement resolving internal governance dispute within non-share corporation.
A non-share corporation operating a mosque and community centre experienced an internal governance dispute among its members, leading to litigation.
After reviewing affidavit evidence and a monitor’s report, the court highlighted corporate governance errors committed by both sides under Canadian corporate law.
The court encouraged the parties to resolve the dispute without judicial determination.
The parties entered into Minutes of Settlement providing for an interim executive committee and future elections.
The court approved the settlement, the monitor’s report and activities, and the monitor’s fees.
