The Quality Sterling group of companies (QSG) sought CCAA protection.
Suppliers asserted trust claims under the Construction Act and sought a super-priority Lien and Trust Regularization Order (LTRO).
The DIP Lender, Financial Advisor, and Directors & Officers (D&Os) moved to vary the Initial Order and ARIO to explicitly include "trusts" in the super-priority clause, arguing its omission was an accidental slip.
The court granted the motion to vary, finding the omission was an accidental slip and that the court had not adjudicated on the specific exclusion of trusts from super-priority.
The court held that federal paramountcy dictates that court-ordered CCAA super-priorities prevail over provincial statutory trusts where an operational conflict exists, dismissing the Suppliers' claim for priority over the DIP Lender's, Financial Advisor's, and D&Os' charges.
