Court File and Parties
COURT FILE NO.: 33-165577 DATE: 2017/03/24 ONTARIO SUPERIOR COURT OF JUSTICE IN BANKRUPTCY and INSOLVENCY
IN THE MATTER OF THE BANKRUPTCY OF THE QUIET VOICE PRODUCTIONS INC., OF THE CITY OF OTTAWA IN THE PROVINCE OF ONTARIO
BEFORE: Justice Stanley Kershman
HEARD IN OTTAWA: March 22, 2017
APPEARANCE: Affinity Production Group and Greenwood Rental Services Inc., Applicant Creditors/Moving Party Quiet Voice Productions Inc., Responding Party/Debtor
COUNSEL: Thomas G. Conway and Carmen Baru, Applicant Creditors/Moving Party James Bowie, Responding Party/Debtor Kevin McCart, Trustee in Bankruptcy
Endorsement
[1] The original motion to be argued on March 22, 2017 was the continuation of a motion brought and partially argued by the Applicants on February 22, 2017.
[2] Due to time limitations and due to the request by the Applicants’ counsel for time to provide case law in relation to its position, the matter was adjourned to March 22, 2017 to be completed.
[3] Before March 22, 2017, the Court was advised that the Applicants would be abandoning the partially argued motion and sought to continue the Application for the Bankruptcy Order which had been adjourned sine die on consent on January 18, 2017.
[4] By January 18, 2017, it was agreed on the record that cross-examinations on affidavits in support of the Application for a Bankruptcy Order would be held prior to the return of the Bankruptcy Application. Cross-examinations were not held because the Debtor was going to file a Notice of Intention to Make a Proposal and a subsequent Proposal. Both of these documents were filed.
[5] The Applicants decided to return the Application for the Bankruptcy Order without giving Mr. Bowie an opportunity to cross-examine on the Affidavits which he had the right to do.
[6] The Court notes that the Proposal was filed by the Bankrupt on or about March 14, 2017 and that the First Meeting of creditors is to be held on March 30, 2017 at the Office of the Trustee in Bankruptcy.
[7] The Court confirms that the Applicants have abandoned the motion that was originally started on February 22, 2017.
[8] On March 22, 2017 the Court did not have time to hear the continuation of the Application for the Bankruptcy Order in part due to time limitations. In addition the Court did not to hear the continuation for the Application for a Bankruptcy Order because the cross-examinations, previously ordered, had not been held, notwithstanding the fact that the Applicants knew that their clients were going to be cross-examined on their Affidavits.
[9] Lastly, the Court is fully aware that the First Meeting of Creditors on the Proposal is set for March 30, 2017, approximately eight days from now. The Court does not see any reason why that meeting should not be held.
[10] The Court makes the following orders:
a) The Court exercises its inherent and equitable jurisdiction and orders that in the event that the Proposal vote is not held on March 30, 2017, that the parties return to court before Kershman J. on April 13, 2017 at 9:30 a.m. for directions in relation to when the vote will take place.
b) In the event that the Proposal is voted on and refused by the creditors, in accordance with the provisions of the Bankruptcy and Insolvency Act, there will be an automatic bankruptcy.
c) In the event that the Proposal is approved of by the creditors then the Application for a Bankruptcy Order will be heard at the same time as the request for the Court Approval of the Proposal by the Debtor.
d) The Court reserves the right to determine which matter will be dealt with first at that time, whether it will be a Application for the Bankruptcy Order or the approval of the Proposal.
e) Any cross-examinations on Affidavits in relation to the Application for a Bankruptcy Order are to be completed by May 2, 2017. The Court Approval of the Proposal and the Bankruptcy Application are to be heard on a date to be set by the trial coordinator. Cross-examinations will only be held if the Proposal is approved of by the creditors.
f) Any other issues of the mechanics of these proceedings should be addressed to the Court in writing.
g) Any funds currently held by the Debtor are to remain in the account and are not to be removed in any way.
h) The Proposal Trustee will deliver a list of the names, addresses and any other contact information for the individual crew members and individual union performers to the Applicant’s counsel by March 24, 2017 together with a petty cash report.
i) Order accordingly.
Justice Stanley Kershman Date: March 24, 2017