Bankruptcy and Insolvency Law - SCJ

This is a costs decision following an interim parenting order motion.

The court previously granted an interim parenting arrangement providing the applicant father with weekend and mid-week parenting time.

The respondent mother sought costs on a substantial indemnity basis, while the applicant sought no costs or alternatively costs in his favour.

The court found that neither party was successful on the motion, as neither proposed parenting schedule was adopted.

The court determined that success was divided due to the respondent's unreasonable and vacillating positions throughout the motion and the applicant's unsuccessful position stemming from family violence concerns involving his parents.

Accordingly, the court ordered that each party bear their own costs.

The Interim Receiver, TDB Restructuring Limited, sought court approval to commence a marketing and sales process for the real properties of Thomas Dylan Suitor, who had been adjudged bankrupt.

The court dismissed the motion, holding that the powers of an interim receiver under section 46 of the Bankruptcy and Insolvency Act are limited to preservation and protection of assets, and do not extend to a full marketing and sale process unless the property is perishable or likely to depreciate rapidly in value.

The court found insufficient evidence that the properties met this threshold and noted that a full receivership under section 243 of the BIA would be required for such powers.

The decision addresses a motion by landlords Juan Liu and Bobin Rui to lift the stay of proceedings under section 69.3(1) of the Bankruptcy and Insolvency Act (BIA) in respect of their tenant, Leanna Mae Snaith, who had filed for bankruptcy after eviction orders were made against her.

The court reviews the procedural history, including the Landlord and Tenant Board (LTB) orders, review and appeal proceedings, and the bankruptcy filing.

The court finds that the eviction order is not a "claim provable in bankruptcy" and thus not subject to the stay, or, in the alternative, that the stay should be lifted under section 69.4 of the BIA due to material prejudice to the landlords.

The court also provides guidance on the interaction between residential tenancy law and bankruptcy, and addresses costs.

The court considered whether to dismiss a bankruptcy application brought by Bioventus, LLC against Trindent Consulting Management International Inc. under section 43(7) of the Bankruptcy and Insolvency Act, in light of Trindent’s prior U.S. Chapter 7 bankruptcy.

The court found that Canadian law allows for concurrent insolvency proceedings and that the statutory remedies under the BIA are not property of the debtor’s estate.

The motion to dismiss was denied, and the bankruptcy application may proceed.

This endorsement grants an unopposed application by RioCan Real Estate Investment Trust and related entities for the appointment of FTI Consulting Canada Inc. as receiver over the assets of the RioCan-HBC joint venture entities.

The court reviews the legal test for appointing a receiver under the Bankruptcy and Insolvency Act and the Courts of Justice Act, referencing relevant case law and statutory factors.

The receivership is found to be just and convenient in light of the joint venture’s financial distress, the failure of restructuring efforts, and the need to preserve and maximize value for stakeholders.

The order authorizes the receiver to borrow up to $20 million and provides for allocation of costs and a mechanism for secured lenders to terminate the receivership as to their collateral.

The court granted the Monitor's application to assign John Aquino into bankruptcy and continued the Mareva order against him.

The decision addresses the requirements for a bankruptcy order under the Bankruptcy and Insolvency Act, the discretion to dismiss or stay such an application, and the standards for continuing a Mareva injunction post-judgment.

The court found that John Aquino had committed an act of bankruptcy, was unable to pay his debts, and that there was no bona fide dispute with the Monitor.

The court also rejected arguments that the application was brought for a collateral purpose and found the continuation of the Mareva order appropriate.

This decision concerns motions by the Receiver for Bridging Finance Inc. and by BlackRock Funds to lift the stay of proceedings against Gary Man Kin Ng, a bankrupt, and to validate service of a Statement of Claim.

The court granted both motions, finding that the actions for fraud and fraudulent misrepresentation against Ng would not be discharged in bankruptcy, involved sufficient complexity, and required Ng as a necessary party.

The court also validated service of the Statement of Claim on Ng and the Ng Entities, as Ng had actual notice.

The decision reviews the legal test for lifting a bankruptcy stay and the requirements for validating service.

The Trustee sought to set aside a transfer of property from Kaldep Singh Gidda to Sunita Rani Saini as a transfer at undervalue under section 96(1)(b) of the Bankruptcy and Insolvency Act, or alternatively under the Fraudulent Conveyances Act.

The court found that the transfer occurred within one year of bankruptcy, between non-arm’s length parties, and for no consideration.

The court rejected Ms. Saini’s defences of resulting or constructive trust, finding no evidence of a trust, loan, or gift, and held that her payments for mortgage and expenses did not create an equitable interest.

The Trustee was successful and awarded costs.

This endorsement addresses three related matters: the appointment of B. Riley Farber Inc. as receiver over the property of the respondents, the granting of a Mareva injunction against Sanford Sussman, and the scheduling of a motion to appoint representative counsel for investors in mortgages brokered and administered by Sussman Mortgage Funding Inc. The court finds the appointment of a receiver to be in the public interest and just and convenient, and grants the Mareva injunction on consent.

The endorsement also sets out the background of the proceedings, the issues to be determined, and the reasons for the orders made.

This endorsement concerns an unopposed motion by Yellow Corporation, as Foreign Representative, seeking recognition and enforcement in Canada of a U.S. Bankruptcy Court order approving the termination of certain Canadian real property leases (the "Reimer Leases") as part of cross-border insolvency proceedings under the Companies’ Creditors Arrangement Act.

The court finds the negotiated lease termination agreement to be fair and reasonable, maximizes value for the debtors, and grants the requested relief, including recognition of the U.S. order and authorization for related asset transfers.

This decision grants a Confirmation Recognition and Termination Order in respect of Mitel Networks Corporation’s cross-border restructuring under the Companies’ Creditors Arrangement Act (CCAA) and Chapter 11 of the United States Bankruptcy Code.

The Court recognizes and enforces the US Confirmation Order, approves the restructuring plan, and terminates the Canadian recognition proceedings, finding the plan fair, reasonable, and consistent with Canadian public policy.

This endorsement addresses a motion by the City of Toronto and Adam Vaughan, creditors of 1631651 Ontario Inc., seeking an order that the assignment in bankruptcy does not take precedence over a prior order for payment and directing the Accountant to release funds to their counsel.

The court reviews the application of section 70(1) of the Bankruptcy and Insolvency Act and considers relevant case law from other jurisdictions and Ontario.

The motion is adjourned to allow further submissions on Ontario authorities.

The court considered a motion by msi Spergel Inc., as Administrator, for approval of Danny Angelatos’s consumer proposal under the Bankruptcy and Insolvency Act.

Canadian Tire Bank opposed, arguing Angelatos was not eligible because his assets exceeded his liabilities and creditors were willing to make arrangements outside the proposal.

The court found Angelatos met the definition of “insolvent person” under the BIA, as he was unable to meet his obligations as they became due, and distinguished the authorities relied on by the Bank.

The court also found the proposal was reasonable and fair to both debtor and creditors, given the family’s circumstances and the creditors’ approval.

The proposal was approved, and costs awarded to the Administrator.

The court granted judgment in favour of V2 Investment Holdings Inc. for a $12.9 million loan made to Sam Mizrahi and related corporate respondents, finding the debt liquidated and undisputed.

The respondents' arguments of bad faith and equitable set-off, based on alleged promises regarding mortgage registration and intercreditor agreements, were rejected as unsupported by the evidence.

The court found no binding agreement to amend the loan or enter a standstill, and no breach of the duty of honest performance.

Judgment was granted for the outstanding amount plus interest, with directions for further submissions on costs and interest calculations.

The decision concerns the approval of a reverse vesting order (RVO) in the context of insolvency proceedings under the Companies' Creditors Arrangement Act (CCAA).

The Court-appointed Monitor sought approval for a transaction involving the sale of all shares of the Purchased Companies to North Mill Equipment Finance LLC, the granting of related releases, a sealing order, and an extension of the stay of proceedings.

The court reviewed the necessity and fairness of the RVO structure, the process leading to the transaction, and the impact on stakeholders, ultimately granting the relief sought.

This decision sanctions the CCAA Plans of Imperial Tobacco Canada Limited, Imperial Tobacco Company Limited, JTI-Macdonald Corp., and Rothmans, Benson & Hedges Inc., effecting a global settlement of all tobacco-related claims in Canada.

The court reviews the structure, allocation, and fairness of the plans, including the creation of a $1 billion Cy-près Foundation, and addresses objections from social stakeholders.

The court finds the plans fair, reasonable, and in the public interest, and grants the requested relief, including third-party releases and the appointment of plan administrators.

This decision concerns motions brought by Pride Group Holdings Inc. and related applicants under the Companies' Creditors Arrangement Act (CCAA) for interim relief in their restructuring proceedings.

The court addresses requests for approval of interim distributions, payment of direct costs, application of deferred payments for working capital, and approval of certain activities of the Monitor.

The court grants the requested relief, finding it necessary to maintain liquidity and continue the wind-down process, and holds that the proposed mechanisms are equitable and consistent with the CCAA’s remedial objectives.

This endorsement addresses a case conference requested by Sergio Grillone, an undischarged bankrupt, seeking directions regarding his proposed appeal from a scheduling endorsement and related matters in ongoing bankruptcy proceedings.

The court finds that Mr. Grillone has no right of appeal from the scheduling endorsement, as no order has been made from which an appeal lies, and dismisses his proposed motion as frivolous, vexatious, or an abuse of process under rule 2.1.01.

The decision details the procedural history, the positions of the parties, and the court’s reasoning for dismissing the motion.

The decision concerns a motion by creditors Jennifer Look-Hong and Geoffrey MacKay in the bankruptcy of The Aggressive Good Inc. The motion sought, among other things, to challenge the eligibility of Christopher Falconi to act as an inspector and to have his votes at the first meeting of creditors revoked.

The court found that the Trustee made a palpable and overriding error in determining the date Mr. Falconi ceased to be a director, and that Mr. Falconi was not dealing at arm’s length with the debtor within the year prior to bankruptcy.

The court also found that Mr. Falconi was ineligible to act as an inspector due to his involvement in contested actions against the estate.

The motion was granted, and the order was signed as requested, with a new meeting of creditors to be held.

The Applicants sought and were granted several orders in a Companies' Creditors Arrangement Act (CCAA) proceeding, including approval of a Remaining Securitized Assets Order, a sale and vesting order for Dixie Truck Parts Inc. (Ontario and Delaware), an omnibus distribution order, and a sealing order.

The Court found that the sale process was reasonable, the related party transaction safeguards were sufficient, and the proposed orders were fair and reasonable.

The Court also addressed the importance of timely opposition to relief and the need for efficiency and comity in cross-border insolvency proceedings.