The applicant sought an order approving the sale of its assets to a purchaser under the Companies' Creditors Arrangement Act.
The transaction was a credit-bid that would result in the continuation of a substantial portion of the business, saving jobs and stores.
An unsecured creditor objected because the transaction did not treat all unsecured creditors equally, as the purchaser assumed only certain critical supplier liabilities.
The court approved the transaction, finding that under s. 36 of the CCAA, there is no requirement that all creditors be treated equally in a sale, and the transaction was more beneficial than a liquidation.
