Rebecca L. Kennedy

The Applicant, a mortgagee, sought to vary a previously consented receivership order concerning three properties (Harwood Properties) in Ajax.

The original order, which appointed a receiver, included provisions requiring consultation with the Town of Ajax on sales and a new development agreement with a right of re-purchase for the Town.

These terms were agreed upon in exchange for the Town's consent to the receivership and a stay of its own action regarding a re-purchase right and priority dispute.

The Applicant argued that changed circumstances, specifically the unacceptability of the development agreement terms to potential purchasers, justified varying the order and determining the priority of its mortgage over the Town's re-purchase right.

The court dismissed the motion, emphasizing the finality of consent orders and that the Applicant had agreed to the terms, which resolved a pending priority dispute.

The court found no misrepresentation by the Town that would vitiate the Applicant's consent and held that the comeback clause should not be used to prejudice parties who relied on the original order.

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.

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.

The applicant, Green Relief Inc., sought approval of a transaction for the sale of its assets to 2650064 Ontario Inc. in the course of a CCAA proceeding.

The transaction included a condition precedent releasing claims against current directors, legal counsel, the Monitor, and its counsel.

Certain founding shareholders opposed the release, arguing the court lacked jurisdiction to grant it prior to a plan of arrangement and that they wished to pursue claims for loss of chance.

The court approved the transaction and the release, finding the sale process was reasonable and the release was rationally connected to the restructuring, benefiting creditors by preventing the depletion of the estate through indemnity claims.

The court temporarily lifted the stay of proceedings to allow claims covered by tail insurance to be filed.

Her Majesty the Queen in right of Ontario sought to lift a stay on its $330 billion health care cost recovery action against three tobacco companies (JTI-Macdonald Corp., Imperial Tobacco, Rothmans, Benson & Hedges Inc.) and eleven co-defendants, which was imposed under CCAA proceedings.

Ontario proposed to temporarily stay the effects of any judgment.

The court dismissed the motion, emphasizing the need to preserve the status quo in CCAA proceedings to facilitate a global resolution of significant claims.

Allowing Ontario's action to proceed would alter the level playing field, distract from restructuring efforts, and impose significant costs, prejudicing other stakeholders.

The applicants, JTI-Macdonald Corp., Imperial Tobacco Canada Limited, Imperial Tobacco Company Limited, and Rothmans, Benson & Hedges Inc., sought protection under the Companies' Creditors Arrangement Act (CCAA) following a $13.5 billion judgment from the Quebec Court of Appeal and other ongoing litigation.

JTI-Macdonald Corp. and Rothmans, Benson & Hedges Inc. moved for orders to file Supreme Court of Canada (SCC) leave applications but suspend further proceedings.

Imperial Tobacco Canada Limited and Imperial Tobacco Company Limited sought a blanket stay of all proceedings and limitation periods.

The Quebec class action plaintiffs opposed the motions and sought to partially lift the stay.

The court affirmed its broad jurisdiction under CCAA s. 11 to stay all actions, including appellate proceedings and limitation periods.

The court dismissed the motion by JTI-Macdonald Corp. and Rothmans, Benson & Hedges Inc., and granted Imperial Tobacco's motion, finding that a blanket stay best preserved the status quo and facilitated a global resolution for all stakeholders.