The applicants in a CCAA proceeding brought a motion seeking approval of a distribution of remaining proceeds, targeted third-party releases, approval of the Monitor's reports and fees, and termination of the CCAA proceedings.
The court approved the distribution to the DIP Lender, noting it was unopposed and justified given the emergency financing provided.
However, the court found the proposed scope of the third-party releases impermissibly broad, as it purported to release claims unrelated to the restructuring.
The court directed that the release language be narrowed to tie specifically to activities contributing to the CCAA proceedings.
