The applicants, comprising the Cinram Group, sought an Initial Order under the CCAA.
The court found that the applicants were debtor companies and insolvent, facing a looming liquidity crisis.
The court granted the Initial Order, which included a stay of proceedings extended to non-applicant subsidiaries, authorization to pay critical pre-filing obligations, and approval of various charges including a $15 million DIP financing charge, a $3.5 million administration charge, a $13 million directors' and officers' charge, and a $3 million KERP charge.
The court also authorized the foreign representative to seek recognition under Chapter 15 of the US Bankruptcy Code.
