Puya J Fesharaki

At a come-back hearing following an initial CCAA order, the applicants sought to extend the stay of proceedings, increase DIP financing, and confer investigative powers on the Monitor.

A party representing the investigatees sought an adjournment regarding the ratification of a general partner and the investigative powers.

The court denied the adjournment, finding that the restructuring depended on the DIP financing which required the investigative powers, and that the investigatees would have opportunities to be heard during the investigation.

The requested relief was granted.

The applicants, a group of real estate development entities facing a liquidity crisis, applied for an initial order under the Companies' Creditors Arrangement Act (CCAA).

The court found the applicants insolvent and granted the initial order, including a stay of proceedings extended to related partnership entities.

The court also approved debtor-in-possession (DIP) financing from Halmont Properties Corporation, authorized payments to critical suppliers, appointed Ernst & Young Inc. as Monitor, and appointed Kesmark as Chief Restructuring Officer to stabilize operations and facilitate restructuring.