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Marketing and sale process for trust assets approved, subject to prior court approval for individual transactions.
The applicant, as Note Trustee of the Maple Trust, brought a motion for an order approving a marketing and sale process for the trust's assets following an Event of Default.
The motion was contested by a party who argued that any sale must obtain prior court approval.
The court approved the sale process but ordered that it include a provision requiring prior court approval for any transaction, applying the Soundair principles, to ensure the best possible price is obtained without unnecessary delay.
Buyer who failed to comply with Bulk Sales Act is liable to unsecured creditor for pre-sale debt.
H & R Block purchased stock in bulk from Tax Time without complying with the Bulk Sales Act, instead paying the entire proceeds to secured creditors.
National Trust, an unsecured creditor, sought an accounting under s. 16(2) of the Act.
The Court of Appeal held that H & R's unilateral decision to pay certain creditors was not a proper accounting under the Act, making H & R liable to National Trust for the debt existing at the time of the bulk sale.
However, the Court allowed the appeal in part, finding H & R was not liable for the costs of subsequent litigation between National Trust and Tax Time, as those were post-sale debts.
