The Foreign Representative of Instant Brands Inc. and other Chapter 11 Debtors sought recognition and enforcement of an Interim DIP Order from the US Bankruptcy Court, along with approval of a corresponding priority charge in Canada under section 49 of the CCAA.
The motion was unopposed.
The court, applying principles of comity and cooperation in cross-border insolvency, recognized the Interim DIP Order and granted the priority charge, including the rollup of prepetition debt into post-petition super priority financing, finding it necessary for the debtors' ongoing operations and restructuring costs and that Canadian debtors were not materially prejudiced.
