Mitchell W. Grossell

The applicant university brought a motion within its CCAA proceedings for an order extending the stay period and an order approving the refinancing of its debtor-in-possession (DIP) facility with the provincial government.

The court found that the applicant had acted in good faith and with due diligence, and that the cash flow forecast demonstrated sufficient liquidity to operate during the extended stay period.

The court granted the requested orders, noting the significant interest rate reduction under the replacement DIP facility.

Following the dismissal of a motion brought by the purchaser against the Receiver for alleged breaches of an Asset Purchase Agreement, the court determined the quantum of costs payable to the Receiver.

The Receiver claimed $134,188.17, while the purchaser argued for $60,000.

The court deducted the Receiver's own non-legal professional staff time and reduced the overall amount based on proportionality and reasonableness, fixing the costs payable by the purchaser at $105,000 inclusive of disbursements and HST.

The moving party purchaser sought damages or a $350,000 abatement of the purchase price, alleging the court-appointed Receiver breached an Asset Purchase Agreement and a Share Purchase Agreement by failing to act in good faith and use best efforts to preserve a cannabis license.

The court dismissed the motion, finding the Receiver had no authority over the excluded cannabis assets under its appointment order, the purchaser failed to discover the license's expiry date during its own due diligence, and the Receiver fully complied with its contractual obligations to negotiate and assist with a change of control.