Kyle Behune Plunkett

This endorsement grants the Court-appointed Monitor’s motion for approval of a credit bid process and orderly liquidation plan in the CCAA proceedings of Balboa Inc. and related applicants.

The Court approves the sale agreements, a secondary credit bid process for remaining properties, and an orderly liquidation plan, as well as the Monitor’s reports, activities, and fees.

The stay of proceedings is extended to May 31, 2025.

The decision details the mechanics of the credit bid process, the rationale for the relief, and the Court’s satisfaction that the process is appropriate and fair in the circumstances.

The applicant, BBB Canada Ltd., sought court approval under the Companies' Creditors Arrangement Act (CCAA) for an Omnibus Assignment and Assumption of Leases, FF&E and Trade Fixtures Agreement with DKB Capital.

The motion also requested orders for the assignment of certain leases under section 11.3 of the CCAA and a temporary sealing order for the unredacted agreement.

The court found the marketing process comprehensive, the consideration fair and reasonable, and the agreement beneficial to stakeholders.

The assignments were unopposed.

The court applied the Sherman Estate test for the sealing order and found it appropriate given its limited scope and time.

The motion was granted in its entirety.

SusGlobal Energy Belleville Ltd. brought a motion to reopen a prior motion seeking leave to sue the receiver (BDO) for damages, and to introduce fresh evidence.

The court dismissed the motion, finding that SusGlobal failed to meet the test for introducing fresh evidence as the evidence was available at the original hearing and would not have changed the outcome.

The court also found no miscarriage of justice in refusing to relax the reasonable diligence rule.