Sean Zweig

The applicants sought approval of a sale of substantially all of their assets to a newly incorporated entity owned by their first lien lenders pursuant to a credit bid, effectively wiping out the second lien lenders.

RBC, a first and second lien lender, opposed certain ancillary relief.

The court approved the sale transaction, finding the pre-filing sales process reasonable under the Soundair principles and s. 36(3) of the CCAA.

However, the court declined to grant a broad third-party release by the first lien lenders, refused to bind RBC to a shareholders' agreement, and dismissed RBC's motions for pre-filing interest, fees, and a share of a consent fee.

Applicants sought protection under the Companies' Creditors Arrangement Act and an initial stay of proceedings while pursuing a restructuring and sale process.

The court found the applicants insolvent and eligible for relief, approved the appointment of a monitor, authorized DIP financing, and approved a sale and investment solicitation process.

The court also granted a stay extending to affiliated non-applicant entities due to the integrated nature of their operations.

However, the court modified the proposed initial order by preserving judicial discretion over any future termination of the CCAA proceedings, rejecting language that would have removed the court’s authority after a fixed sunset date.

A debtor company sought an initial order under the Companies’ Creditors Arrangement Act to implement a consensual recapitalization transaction supported by major secured creditors.

The motion requested a stay of proceedings, approval of debtor‑in‑possession financing and related charges, authorization for certain pre‑filing payments, and the appointment of a monitor and foreign representative.

The court was satisfied that the company qualified as a debtor company and that the restructuring proposal had substantial creditor support.

The court granted the requested relief, including a sealing order for confidential financial materials and approval of claims procedure and creditors’ meetings orders to facilitate the restructuring plan.