Puya J Fesharaki

The applicants sought a Final Order approving a Plan of Arrangement under the Canada Business Corporations Act to restructure approximately $1 billion in defaulted debt.

A dissenting debentureholder objected, seeking a carve-out from the arrangement's general release to preserve a potential civil claim for failure to disclose a material change regarding the restructuring negotiations.

The court dismissed the objection, finding the arrangement fair and reasonable, negotiated in good faith, and overwhelmingly approved by securityholders.

The Final Order was granted.

The Administrative Agent for the Syndicate Lenders moved for an order tolling limitation periods relating to claims against the debtor entities, additional stay parties, and related individuals and trusts that may expire during the stay period or within 60 days following its termination.

The motion was unopposed and supported by the Monitor and the Trustee in Bankruptcy.

The court granted the tolling order, finding jurisdiction under section 11 of the CCAA and that the relief advanced the policy and remedial objectives of the Act.

The court acknowledged the respondents' reservation of rights to seek variation or termination of the tolling provisions in the future.

This endorsement grants several orders sought by the Applicants in ongoing Companies' Creditors Arrangement Act (CCAA) proceedings, including approval of the Monitor’s reports and activities, amendment of reporting obligations, addition of Block 6 Holding Inc. as an Applicant, approval of a property sale and related distributions, and the appointment of a mediator to address cost allocation issues among financiers.

The court finds all relief appropriate and supported by the record.

This decision concerns motions brought by Pride Group Holdings Inc. and related applicants under the Companies' Creditors Arrangement Act (CCAA) for interim relief in their restructuring proceedings.

The court addresses requests for approval of interim distributions, payment of direct costs, application of deferred payments for working capital, and approval of certain activities of the Monitor.

The court grants the requested relief, finding it necessary to maintain liquidity and continue the wind-down process, and holds that the proposed mechanisms are equitable and consistent with the CCAA’s remedial objectives.

The Applicants sought and were granted several orders in a Companies' Creditors Arrangement Act (CCAA) proceeding, including approval of a Remaining Securitized Assets Order, a sale and vesting order for Dixie Truck Parts Inc. (Ontario and Delaware), an omnibus distribution order, and a sealing order.

The Court found that the sale process was reasonable, the related party transaction safeguards were sufficient, and the proposed orders were fair and reasonable.

The Court also addressed the importance of timely opposition to relief and the need for efficiency and comity in cross-border insolvency proceedings.

In the context of CCAA proceedings, National Bank of Canada moved to lift the stay of proceedings to appoint a receiver over four real estate properties for which it was the first-ranking mortgage lender.

The applicants and the Monitor opposed the appointment, arguing that the existing sales process under the Real Estate Protocol was functioning well and that appointing a new court officer would add unnecessary costs without significant benefit.

The court dismissed the motion to appoint a receiver, finding it was not just or convenient, but granted a Rent Enforcement Order allowing net rents to be paid to the moving party.

The court also granted a sealing order for the property appraisals to protect the integrity of the ongoing sales process.

The applicants in a CCAA proceeding sought approval for a revised Wind-Down Plan, a Liquidity Contribution Alternative and Turnover Order, a Stay Extension, and a Key Employee Retention Plan (KERP).

The court approved the relief, finding the revised plan addressed previous concerns by allowing secured creditors (Recourse Lenders) the option to pay their pro rata share of the liquidity requirement to retrieve collateral, or for the applicants to sell inventory to fund the wind-down.

The court also found the KERP appropriate and necessary for an efficient wind-down and extended the stay of proceedings.

The Applicants in a CCAA proceeding sought a Funding Contribution and Turn-Over Order to compel various financiers to contribute to a $40 million wind-down cost, an extension of the stay period, and approval of a Key Employee Retention Plan (KERP).

The court declined the Funding Order and KERP, finding that CCAA section 11.01(b) prohibits compelling new money advances from stakeholders, and that securitization parties are differently situated with assets excluded from the debtor's property.

The court did grant a shorter extension of the stay of proceedings.

In the context of CCAA proceedings, the applicants sought a Funding Order to compel Securitization Parties and other secured lenders to fund a $40 million wind-down of the remaining entities.

The court dismissed the motion for the Funding Order, finding that section 11.01(b) of the CCAA expressly prohibits orders requiring the further advance of money or credit.

Consequently, the court also declined to approve a Key Employee Retention Plan, as it was dependent on the unavailable funding.

The court did, however, grant a temporary sealing order for the KERP details and extended the stay of proceedings to November 29, 2024.

This endorsement concerns a motion brought by Pride Group Holdings Inc. and its affiliates (the Applicants) under the Companies' Creditors Arrangement Act (CCAA) for approval of a going concern transaction for Pride Group Logistics (PGL), a distinct business line.

The proposed purchasers included principals of the Applicants, leading the Court-appointed Monitor to undertake negotiations and carriage of the motion.

The Monitor, supported by the Applicants, their directors, employees, and some financiers (Daimler, Mitsubishi, Finloc, National Bank), recommended approval, arguing it offered a higher recovery than liquidation, preserved approximately 500 jobs, and avoided significant wind-down costs for the broader Pride Entities.

The transaction was opposed by certain secured lenders, including The Bank of Nova Scotia, The Lending Syndicate, TD Equipment Finance Canada, and RBC entities, who preferred a wind-down.

The court applied the factors under CCAA s. 36(3) and the Soundair Principles, finding the sale process reasonable, fair, and transparent.

The court concluded that the transaction was the only viable going concern option, superior to a wind-down, and consistent with the CCAA's purpose of avoiding social and economic losses from liquidation.

The PGL Going Concern Transaction was approved.

In the context of ongoing CCAA proceedings, the applicants and various equipment financiers reached an impasse regarding the wind-down plan and a proposed going-concern sale of the logistics business.

The applicants sought a monetization order, an increase in the administration charge, and lien regularization, which were unopposed and granted by the court to maintain operations.

Due to significant disputes over the sale and liquidation of assets, the court adjourned the contested motions, including several lift-stay motions brought by creditors, and ordered the parties to attend mandatory mediation before a former Commercial List judge.

The applicants, Pride Group Holdings Inc. et al., sought several orders under the Companies' Creditors Arrangement Act (CCAA), including a Turn-Over Order for securitized assets, allocation of Monitor's review costs, and approval and vesting orders for two properties (Cornwall and Abbotsford) and a factoring portfolio.

The approval and vesting relief for the properties and factoring portfolio were unopposed.

The Turn-Over Order was resolved through negotiations and presented to the court on consent.

The court-appointed Monitor recommended all sought relief.

The court granted all requested orders, finding them appropriate and within its jurisdiction under section 11 of the CCAA, noting the Monitor's scrutiny and the benefit to stakeholders.

In a CCAA proceeding, the Applicants sought three orders: approval of a factoring portfolio purchase agreement, approval for distribution of proceeds from a property sale, and permission for a creditor to sell certain vehicles.

The court approved the distribution of Chehalis property proceeds to Roynat.

For the Regions vehicles, the court granted the order allowing Regions to take possession, setting a 30-day retrieval period and approving storage costs of $35/day.

The motion for approval of the JD Factors Purchase Agreement was adjourned to a later date, as Mitsubishi HC Capital Canada Inc. objected, claiming ownership of the receivables and requiring more time to prepare its position.

In a Companies' Creditors Arrangement Act (CCAA) proceeding, the applicants sought court approval for the sale of a real property, the Monitor's reports, a revised governance protocol, and a sale and investor solicitation process (SISP) for their logistics business.

The court approved the property sale, finding it met the Soundair Principles despite not being a court-supervised process.

The Monitor's reports and activities were also approved.

The proposed SISP was approved with a minor amendment requiring the Monitor to consult directly affected secured creditors.

The Revised Governance Protocol, which included default commission rates for vehicle sales and collections, was approved as an interim measure, balancing the need for cost recovery with creditor concerns, noting that financiers could negotiate alternative rates or withhold consent to sales.

This endorsement concerns a motion brought by Pride Group Holdings Inc. and other applicants under the Companies' Creditors Arrangement Act (CCAA).

The applicants sought court approval for three main items: a pre-filing agreement of purchase and sale for the Bolingbrook Property, approval of the Monitor's First and Second Reports, and an amendment to the Amended and Restated Initial Order to allow the sale of redundant, surplus, or non-material property up to certain financial thresholds without further court approval.

The court, applying the Soundair Principles, found the pre-filing sale to be in the best interests of stakeholders, noting the extensive negotiations and lack of opposition.

All requested relief was granted, with the court emphasizing the practical benefits of the proposed amendments for maximizing recovery and minimizing professional fees.

The applicants, Pride Group Holdings Inc. et al., sought an amended and restated initial order under the CCAA, including an extension of the stay period, approval of a debtor-in-possession (DIP) facility, elevation of charge priorities, confirmation against set-off, and approval of governance, real estate monetization, and intercompany/unsecured claims preservation protocols.

The court granted the requested stay extension to June 30, 2024, approved the $30 million DIP facility, and approved all proposed protocols.

The court declined to add an exception to the paramountcy provision as requested by certain securitization funders and approved a carve-out for Triumph Business Capital but limited it to CDN $3 million.

The Applicants, Pride Group Holdings Inc. and related entities, sought an initial order under the Companies’ Creditors Arrangement Act (CCAA) due to a severe downturn in the trucking and logistics industry, leading to a liquidity crisis and lender enforcement actions.

The court granted the initial order, which included a stay of proceedings for the Pride Group, its limited partnerships, additional stay parties, and personal guarantors.

The order also approved the appointment of a Monitor and Chief Restructuring Officer (CRO), authorized certain pre-filing and post-filing payments, and granted Administration and Directors' Charges without super priority.

The court addressed the appointment of foreign representatives and a sealing order for the unredacted CRO Engagement Letter, partially granting the sealing request while requiring monthly fees to remain public.

The Foreign Representative of Diebold Nixdorf, Incorporated and its Canadian subsidiaries applied under the Companies’ Creditors Arrangement Act (CCAA) for recognition of U.S. Chapter 11 proceedings as foreign main proceedings and for recognition and enforcement of U.S. orders, including a super-priority debtor-in-possession (DIP) charge and a prepackaged plan of reorganization.

The court granted the application, finding the U.S. to be the centre of main interests (COMI) for the Canadian entities despite their registered offices being in Canada, due to integrated management, operations, and financial functions.

The court recognized the foreign orders, including the DIP charge, as consistent with CCAA principles and not contrary to public policy, and found no material prejudice to Canadian interests.

The request to dispense with the mandatory notice publication was denied.