The applicant sought a 45-day extension of time to file a proposal under the Bankruptcy and Insolvency Act.
Several creditors opposed, arguing prejudice from erosion of secured receivables and raising concerns about the debtor's good faith, including refusal to consent to a receivership.
The court held that material prejudice under s. 50.4(9) must be measured by the prejudice caused by the extension itself, not by the absence of positive cash flow, and found no creditor materially prejudiced.
The court also found the debtor had acted in good faith and with diligence since filing its notice, and that a viable proposal was likely.
The motion was granted with no costs.
