Bankruptcy and Insolvency Law - SCJ

This endorsement grants several orders sought by the Applicants in ongoing Companies' Creditors Arrangement Act (CCAA) proceedings, including approval of the Monitor’s reports and activities, amendment of reporting obligations, addition of Block 6 Holding Inc. as an Applicant, approval of a property sale and related distributions, and the appointment of a mediator to address cost allocation issues among financiers.

The court finds all relief appropriate and supported by the record.

The applicant, Mitsubishi HC Capital Canada Inc., sought the appointment of a receiver over the property of the respondent, Ribs Transport Inc., following defaults under a credit agreement and two settlement agreements.

The court found that a subsequent settlement agreement (the "Second Settlement Agreement") was binding and that Ribs had substantially complied with its terms, including making significant payments and arranging a required meeting, albeit late.

The court declined to appoint a receiver, holding that such an appointment was not just or convenient in the circumstances, and adjourned the application sine die, returnable on notice if the settlement was breached.

The decision concerns an application under section 192 of the Canada Business Corporations Act (CBCA) for approval of a plan of arrangement by The Cannabist Company Holdings (Canada) Inc. and 16834434 Canada Inc., opposed by Murchinson Ltd. (on behalf of certain noteholders).

The court granted the final order approving the arrangement, which restructures the company’s senior notes, and dismissed Murchinson’s related oppression application.

The reasons address the fairness and reasonableness of the arrangement, the appropriateness of third-party releases, and the standing of Murchinson to bring an oppression claim.

The decision addresses two competing motions for the appointment of representative counsel for investors in a receivership proceeding involving Sussman Mortgage Funding Inc. The court reviews the procedural background, the need for representative counsel, and the competing proposals from Aird & Berlis LLP and Paliare Roland Rosenberg Rothstein LLP.

The court ultimately appoints Aird & Berlis LLP as representative counsel, finding their approach and fee structure preferable for efficiency, transparency, and certainty.

The court considered a motion by Luis Alejandro Correa Rucci to vary the conditions of his bankruptcy discharge order.

The motion was dismissed because it was brought before the expiry of the one-year waiting period required by section 172(3) of the Bankruptcy and Insolvency Act.

The court clarified the distinction between the powers to vary under sections 172(3) and 187(5) of the Act, and set out the requirements for future motions to vary a conditional discharge.

This decision concerns the transition of the receivership of the "The One" development project at Yonge and Bloor in Toronto to Companies’ Creditors Arrangement Act (CCAA) proceedings.

The court granted a discharge order for the receiver, an initial CCAA order, and approved a transaction with Tridel Builders Inc. for project completion.

The court also denied an adjournment request from a late-appearing stakeholder, approved the appointment of a monitor and chief restructuring officer, and authorized various charges and reliefs to facilitate restructuring and maximize value for stakeholders.

This endorsement approves the Monitor's motion for a Second Omnibus Credit Bid Vesting Order and a Second DIP Allocation and Orderly Liquidation Mechanics Order in the restructuring proceedings of Balboa Inc. and related applicants under the Companies' Creditors Arrangement Act.

The court finds the proposed sale transactions, lease assignments, DIP allocation, and liquidation mechanics to be fair, reasonable, and in the best interests of stakeholders, and extends the stay of proceedings to August 31, 2025.

The applicant, Waygar Capital Inc., as agent for Ninepoint Canadian Senior Debt Master Fund LP, sought the appointment of a receiver over the property of the respondents, El Mocambo Entertainment Inc. and related companies, under section 243 of the Bankruptcy and Insolvency Act and section 101 of the Courts of Justice Act.

The court reviewed the legal test and relevant factors for appointing a receiver, including the rights of secured creditors and the conduct of the parties.

Although the respondents did not oppose the application, the court, with the parties' agreement, adjourned the receivership to allow the proposed receiver to act as monitor for a short interim period to explore the possibility of maintaining the business as a going concern.

The application may be brought back on an urgent basis if necessary.

The Applicants sought approval of a Restructuring Framework Agreement (RFA) in ongoing CCAA proceedings.

The Court declined to approve the RFA, finding it neither necessary nor appropriate at this time.

The decision details the reasons for refusing approval, including concerns about the appropriateness of granting control and veto rights to the Lenders, the lack of disclosure of the Budget, and the sufficiency of existing court and Monitor oversight.

The Court also set out directions for ongoing cash flow monitoring and reporting by the Monitor.

This decision concerns the ongoing Companies’ Creditors Arrangement Act (CCAA) proceedings involving Hudson’s Bay Company ULC and related entities.

The Court addresses the extension of the stay of proceedings, approval of a liquidation sale, lease monetization process, and a sales and investment solicitation process (SISP).

The Court also considers the repayment of the DIP facility, approval of a Key Employee Retention Plan (KERP), and a sealing order for confidential employee information.

The Court grants most of the relief sought, defers approval of the Restructuring Support Agreement to allow further stakeholder review, and provides detailed reasons for each order.

This endorsement grants a brief adjournment in the Companies’ Creditors Arrangement Act (CCAA) proceedings involving Hudson’s Bay Company ULC and related entities, following ongoing discussions between the applicants and stakeholders.

The court extends the stay of proceedings, increases the Directors’ Charge, amends the relative priorities of charges, and approves the engagement of Reflect Advisors, LLC as financial advisor.

The court finds the requested relief appropriate, unopposed, and supported by the Monitor, and orders the requested amendments to the Initial Order.

The third parties moved for summary judgment to dismiss the third party claim brought by the defendants, Michael Gillis and Julie Joanisse Gillis, against their financial advisors and firm.

The court found that the causes of action arose before and during the defendants’ bankruptcy and thus vested in the trustee in bankruptcy.

The claims were not transferred back to the defendants and were also found to be statute-barred.

The court granted summary judgment dismissing the third party claim and struck the action as a nullity.

This decision concerns the approval of a sale process and a motion to appoint the sales officer as receiver in the context of a deadlocked insurance brokerage business.

The court approves the sale process and related ancillary relief, including the appointment of an interim broker and non-solicitation orders, but dismisses the motion to appoint the sales officer as receiver.

The ruling addresses issues of conflict of interest, compliance with prior orders, and the preservation of assets pending winding up.

This decision grants initial relief under the Companies’ Creditors Arrangement Act (CCAA) to Hudson’s Bay Company ULC and related entities, including a stay of proceedings, approval of DIP financing, and various charges to facilitate restructuring.

The court reviews the history and financial distress of Hudson’s Bay, the legal standards for CCAA relief, and the appropriateness of extending the stay to non-applicant parties and co-tenants.

The judgment also addresses the maintenance of the cash management system, appointment of a monitor, and the criteria for administration and directors’ charges.

The court finds the relief sought is necessary and appropriate to stabilize operations and maximize value for stakeholders during the initial stay period.

The court was asked to decide between the debtors’ application for protection under the Companies' Creditors Arrangement Act (CCAA) and the Toronto-Dominion Bank’s application for the appointment of a receiver.

After reviewing the facts and arguments, the court concluded that it was most just and convenient to appoint a receiver, dismissing the CCAA application.

The decision reviews the history of the debtors’ restructuring efforts, the positions of the parties, and the legal principles governing the choice between CCAA and receivership, ultimately finding that the interests of the senior secured creditor should prevail in the circumstances.

This endorsement addresses a motion by Sandvine Corporation and related entities under the Companies’ Creditors Arrangement Act for approval of a Stalking Horse Transaction Agreement, a vesting order, and related relief.

The court denied an adjournment request by Telecom Egypt, found that all statutory and procedural requirements were met, and approved the transaction, assignments, limited releases, sealing of confidential materials, enhanced monitor powers, and an extension of the stay of proceedings.

The trustee in bankruptcy, Goldhar & Associates Ltd., brought a motion to annul Qui Thieu Mac’s discharge from bankruptcy, arguing that the discharge was granted due to inadvertence in failing to file a notice of opposition.

The court found that there was a bona fide error, that opposition would have been filed but for the error, and that a discharge hearing would likely have led to a different result given the facts proven under section 173(1) of the Bankruptcy and Insolvency Act.

The court exercised its discretion to set aside the absolute discharge and granted the trustee’s motion.

The Monitor, FTI Consulting Canada Inc., brought a motion for an approval and vesting order in respect of the Purchased Assets and the sale thereof to Vault or an affiliate pursuant to the Rifco Asset Purchase Agreement, and for a stay extension order.

The Court approved the Rifco APA and the AVO, finding the process reasonable, the requirements of the Companies' Creditors Arrangement Act satisfied, and the transaction in the best interests of stakeholders.

The stay extension was also granted.

The decision addresses three motions in a civil action: the plaintiffs’ motion to extend and validate service of their statement of claim, the defendants’ motion for a status hearing, and the defendants’ motion to dismiss the action for delay.

The court validates service on the individual defendants, finds that limitation period arguments raise triable issues, and concludes that both parties contributed to the delay.

The court grants the plaintiffs’ motion for a status hearing, dismisses the defendants’ motion to dismiss for delay, and sets a timetable for the action to proceed to trial.

The court approved a Settlement and Mutual Release Agreement regarding the administration of syndicated mortgage loans and projects affiliated with Fortress Real Developments Inc. The Trustee, FAAN Mortgage Administrators Inc., sought approval to enter into the agreement, direct payment of the settlement, and authorize distribution to investors.

The court found the settlement appropriate, noting no better alternatives existed and that the agreement provided certainty and at least a nominal recovery for investors after significant delay.