In the context of an ongoing shareholder dispute and oppression proceedings concerning car dealerships, the parties jointly sought directions on the appropriate sales process to separate the dealership operations from the litigation in order to preserve value.
One group of shareholders proposed an asset sale of the dealerships, while the other proposed a share sale.
The court considered the impending deadline imposed by the common lender, which had threatened to enforce its security if the dealerships were not separated from the dispute by a fixed date.
Given the urgency and the practical realities of completing a transaction quickly, the court held that a share sale was the most efficient and time-sensitive method to effect the separation.
The court therefore approved the proposed share-sale process.
