L. Corne

A secured creditor applied for the appointment of a receiver over a group of integrated technology companies operating in Canada and the United States following defaults under a loan agreement and the expiry of a forbearance arrangement.

The creditor also sought approval of a stalking horse asset purchase agreement and sales process.

The court found the debtors insolvent and concluded that appointing a receiver under s. 243 of the Bankruptcy and Insolvency Act and s. 101 of the Courts of Justice Act was just and convenient, particularly to facilitate a cross-border restructuring and prevent fragmented enforcement actions by creditors.

Applying the principles governing receiver sales from Royal Bank of Canada v. Soundair Corporation, the court approved the stalking horse process and sealed confidential commercial appendices containing sensitive information.

Orders appointing the receiver, approving the sales process, and sealing the confidential materials were granted.

In a receivership proceeding, the court considered a motion by a court-appointed receiver for approval of the sale of a condominium unit and a vesting order.

The court applied the principles from Royal Bank of Canada v. Soundair Corp., examining whether the receiver made sufficient efforts to obtain the best price, whether the process was fair and effective, and whether the interests of stakeholders were protected.

The court found that the receiver followed a previously approved marketing process and that the proposed purchase price exceeded comparable appraised values.

No interested party opposed the motion.

The sale was approved and a vesting order granted.