The appellant, a director of the bankrupt company, sought to pursue a cause of action against the respondent secured creditor.
The motion judge permitted the trustee to auction the cause of action and allowed the respondent to credit-bid up to the face value of its secured debt.
The appellant sought to appeal this decision.
The Court of Appeal found no appeal as of right under s. 193 of the Bankruptcy and Insolvency Act but granted leave to appeal under s. 193(e), noting that whether a creditor may use a credit bid to acquire an asset that does not attach to its security is an unsettled issue of general importance.
