3 total
The court issued a corrigendum clarifying that the bankruptcy proposal was not approved but granting leave to amend.
This corrigendum amends a previous decision regarding the proposal of Innovative Coating Systems Inc. The original decision did not approve the proposal but granted leave for the debtor to file an amended proposal within ten days, specifically removing a deemed release clause.
It also adds a sentence concerning the trustee's costs.
BIA proposal rejected because third-party release of principal's personal guarantees did not benefit creditors.
The debtor brought an application for court approval of its proposal under the Bankruptcy and Insolvency Act.
Two secured creditors opposed the proposal because it contained a clause releasing the debtor's principal from his personal guarantees.
The court refused to approve the proposal, finding that the release of the guarantor was not necessary for the restructuring and did not benefit the general body of creditors.
The court also found that the proposal lacked good faith as the release clause was not prominently disclosed.
Appeal allowed in part to grant a brief extension of time to redeem mortgaged property.
The appellant appealed a judgment dismissing its application for a declaration that it continued to have a right to redeem a mortgaged property and its request for equitable relief.
The respondent bank did not oppose a brief extension of the right to redeem.
The Court of Appeal set aside the lower court's order and granted the appellant an extension of time to redeem the property, subject to strict conditions including full payment of principal, interest, and costs by a specified date.
The appellant was ordered to pay the respondent's costs of the appeal fixed at $500.
