The applicants, affiliated companies in the oil and gas sector, sought approval of a reverse vesting order (RVO) under the Companies' Creditors Arrangement Act.
The RVO was opposed by several municipalities because it would extinguish significant outstanding municipal tax liabilities.
The court approved the RVO, finding that it met the requirements of section 36 of the CCAA and the Soundair principles.
The court concluded that the RVO was the only commercially viable alternative to a bankruptcy, which would have disastrous consequences for all stakeholders and leave no funds for environmental obligations or municipal taxes.
