The applicant, a creditor of the debtor company under CCAA protection, sought an order authorizing it to file a plan of compromise or arrangement and directing meetings of affected creditors to vote on the plan.
The proposed plan did not include a shareholder vote.
The debtor opposed the application, arguing the plan was not in the best interests of stakeholders and improperly excluded shareholders.
The court found that because the debtor's shares had potential equity value depending on the outcome of pending litigation, and the proposed plan would radically alter the economic prospects of the shares, a shareholder vote was required.
The application to order a meeting of creditors without a shareholder vote was denied.
