In a CCAA proceeding, the Monitor brought a motion for advice and directions seeking to challenge $2.3 million in payments in kind made by the debtor to a trade creditor as oppressive.
The court dismissed the motion, finding that the Monitor had not been empowered to bring such proceedings on behalf of the debtor corporations and that it was inappropriate for the Monitor to drop its neutrality to pit creditors against each other.
Furthermore, the Monitor failed to prove that any creditors held reasonable expectations that were breached by the transfers.
