Worldspan Marine Inc. (Re)

Worldspan Marine Inc. (Re)

Section 11.52 of the CCAA authorizes a court to grant an Administration Charge over all or part of the debtor's property wherever situate and to rank it in priority; the British Columbia initial order granted such a charge over the Non-Vessel Property which included the A129; the U.S. Bankruptcy Court Recognition Order entrusted administration of the A129 to the Monitor and deferred priority disputes to the CCAA proceeding; accordingly the Administration Charge attached in rem to the A129 and continues to attach to the sale proceeds and ranks ahead of CAT's mortgage under the statutory super-priority created by s.11.52; CAT's application is dismissed.

Citation
2013 BCSC 1593
Parties
Petitioner: Worldspan Marine Inc.; Petitioner: Crescent Custom Yachts Inc.; Petitioner: Queenship Marine Industries Ltd.; Petitioner: 27222 Developments Ltd.; Petitioner: Composite FRP Products Ltd.; Secured Creditor/applicant: Caterpillar Financial Services Corporation; Monitor: Boale Wood & Company Ltd.; Solicitors for Caterpillar: Boughton Law Corporation
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
3 September 2013
Procedural Posture
Companies' Creditors Arrangement Act (ccaa) Proceeding / Priorities Application Concerning Attachment and Ranking of Administration Charge Against Proceeds of Sale of Vessel (post Recognition Under Chapter 15)
Outcome
Application dismissed. Administration Charge attached in rem to the A129 and to its sale proceeds; Monitor entitled to $170,000 from proceeds; costs awarded to Monitor.
Legal Topics
Administration Charge, Super Priority, Attachment in Rem, Priorities Between Maritime Mortgage and Statutory Charge, Recognition Under Chapter 15, Comity Between Courts
Source Language
English
Insolvency Maritime Law Bankruptcy Corporate Law Conflict of Laws Administration Charge Super Priority Attachment in Rem +3 more

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Parties

Worldspan Marine Inc.

Petitioner

Crescent Custom Yachts Inc.

Petitioner

Queenship Marine Industries Ltd.

Petitioner

27222 Developments Ltd.

Petitioner

Composite FRP Products Ltd.

Petitioner

Caterpillar Financial Services Corporation

Secured Creditor/applicant

Boale Wood & Company Ltd.

Monitor

Boughton Law Corporation

Solicitors for Caterpillar

Procedural Posture

Companies' Creditors Arrangement Act (ccaa) Proceeding / Priorities Application Concerning Attachment and Ranking of Administration Charge Against Proceeds of Sale of Vessel (post Recognition Under Chapter 15)

Legal Issues

  1. 1 Whether the Administration Charge granted under s.11.52 CCAA attached in rem to the Queenship 70' yacht (A129) or its sale proceeds
  2. 2 Whether the Administration Charge ranks in priority to CAT's mortgage over the A129
  3. 3 Whether the U.S. Chapter 15 Recognition Order affected the attachment or priority of the Administration Charge

Ratio Decidendi

Section 11.52 of the CCAA authorizes a court to grant an Administration Charge over all or part of the debtor's property wherever situate and to rank it in priority; the British Columbia initial order granted such a charge over the Non-Vessel Property which included the A129; the U.S. Bankruptcy Court Recognition Order entrusted administration of the A129 to the Monitor and deferred priority disputes to the CCAA proceeding; accordingly the Administration Charge attached in rem to the A129 and continues to attach to the sale proceeds and ranks ahead of CAT's mortgage under the statutory super-priority created by s.11.52; CAT's application is dismissed.

Court Disposition

Application dismissed. Administration Charge attached in rem to the A129 and to its sale proceeds; Monitor entitled to $170,000 from proceeds; costs awarded to Monitor.

Orders

  • Application of Caterpillar Financial Services Corporation dismissed
  • Administration Charge found to attach to the Queenship 70' yacht (A129) and to its sale proceeds