The applicants, a group of real estate development entities (Ashcroft Homes Group), sought to extend an initial Companies' Creditors Arrangement Act (CCAA) stay of proceedings to facilitate a restructuring.
Secured creditors, representing 84% of the total secured debt, opposed the extension and instead moved for the appointment of interim receivers.
The court found the applicants' restructuring plan lacked substance, noted a significant loss of confidence in management due to past conduct and outdated property valuations, and determined that the collaborative receivership approach proposed by the majority of secured creditors was more appropriate.
The motion to extend the CCAA stay was dismissed, and the motions for the appointment of receivers were granted.
