In the context of a complex CCAA restructuring, the applicants sought approval for several motions, including a second Key Employee Retention Plan (KERP), an extension of the stay of proceedings, an extension of the DIP financing facility, and two corporate transactions involving the wind-up of subsidiaries.
US class action plaintiffs opposed the KERP and DIP extension, arguing they would deplete the estate.
The court approved all requests, finding the KERP and DIP extension necessary to maximize creditor recovery and advance a restructuring plan.
The court also used its broad jurisdiction under s. 11 of the CCAA to approve a corporate dissolution that technically violated the solvency requirements of the CBCA, as the transaction benefited the estate and did not prejudice stakeholders.
