Stephanie Fernandes

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.

This endorsement grants the Court-appointed Monitor’s motion for approval of a credit bid process and orderly liquidation plan in the CCAA proceedings of Balboa Inc. and related applicants.

The Court approves the sale agreements, a secondary credit bid process for remaining properties, and an orderly liquidation plan, as well as the Monitor’s reports, activities, and fees.

The stay of proceedings is extended to May 31, 2025.

The decision details the mechanics of the credit bid process, the rationale for the relief, and the Court’s satisfaction that the process is appropriate and fair in the circumstances.

The Monitor in the CCAA proceedings for Balboa Inc. and related entities sought court approval for two main orders: first, approving Credit Bid Asset Purchase Agreements (APAs), vesting properties in purchasers, and assigning tenant leases; and second, extending the stay period, approving a replacement DIP facility (Viscount DIP Term Sheet), repaying the existing DIP, amending charges, and approving the Monitor's reports, activities, fees, and disbursements.

The motions were unopposed.

The court granted the relief, finding it fair, reasonable, and in the best interests of stakeholders, despite the unfortunate circumstances and hardship expressed by affected lenders.

The court confirmed its jurisdiction under the CCAA and applied relevant principles for asset sales, lease assignments, interim financing, and cost allocation.