A judgment creditor brought a motion under s. 50.4(11) of the Bankruptcy and Insolvency Act to terminate the automatic 30‑day stay following the debtor’s notice of intention to make a proposal.
The debtor sought an extension of the stay under s. 50.4(9).
The court found the debtor failed to establish good faith, due diligence, or a likelihood of presenting a viable proposal, providing only vague assertions of possible negotiations while having no active business, revenue, or meaningful assets.
Given the absence of evidence of any realistic restructuring plan and the veto power of the principal creditor, the statutory requirements for an extension were not met.
The court dismissed the debtor’s motion for an extension and granted the creditor’s motion to terminate the stay.
