Soccer Express Trading Corp. (Re)

Soccer Express Trading Corp. (Re)

The court granted the initial CCAA order continuing the BIA proceedings under s.11.6, continued the previously granted BIA relief including an Administration Charge ($200,000) and approval of Greyrock's Interim Lender's Charge ($1.4M), and ordered that adidas is deemed a critical supplier required to resume supply and reinstate MiTeam and B2B access on a cash on delivery basis, subject to review on May 8, 2020.

Citation
2020 BCSC 2109
Parties
Petitioner: Soccer Express Trading Corp.; Petitioner: Kahunaverse Sports Group Inc.; Monitor/proposal Trustee: PricewaterhouseCoopers Inc.; Interim Lender: Greyrock Capital Incorporated; Supplier/respondent: adidas Canada Limited
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
30 April 2020
Procedural Posture
CCAA Application Continuing BIA Proceedings / Initial Order Hearing (ex Parte)
Outcome
Initial CCAA order granted continuing BIA proceedings; critical supplier relief granted with supply on cash on delivery; interim financing and administration charge continued; matter adjourned for further hearing.
Legal Topics
CCAA Initial Order, Critical Supplier Provisions S.11.4, Continuation From BIA Under S.11.6, Interim Financing and Charges, Administration Charge, Stay of Proceedings, Supplier Access to B2 B/mi Team Systems
Source Language
English
Insolvency Bankruptcy Corporate Law Commercial Law Contract CCAA Initial Order Critical Supplier Provisions S.11.4 Continuation From BIA Under S.11.6 +4 more

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Parties

Soccer Express Trading Corp.

Petitioner

Kahunaverse Sports Group Inc.

Petitioner

PricewaterhouseCoopers Inc.

Monitor/proposal Trustee

Greyrock Capital Incorporated

Interim Lender

adidas Canada Limited

Supplier/respondent

Procedural Posture

CCAA Application Continuing BIA Proceedings / Initial Order Hearing (ex Parte)

Legal Issues

  1. 1 Whether to continue BIA proceedings under the CCAA
  2. 2 Whether to grant critical supplier relief compelling adidas to resume supply and reinstate access to MiTeam and B2B
  3. 3 Appropriate terms for critical supplier relief (cash on delivery)

Ratio Decidendi

The court granted the initial CCAA order continuing the BIA proceedings under s.11.6, continued the previously granted BIA relief including an Administration Charge ($200,000) and approval of Greyrock's Interim Lender's Charge ($1.4M), and ordered that adidas is deemed a critical supplier required to resume supply and reinstate MiTeam and B2B access on a cash on delivery basis, subject to review on May 8, 2020.

Court Disposition

Initial CCAA order granted continuing BIA proceedings; critical supplier relief granted with supply on cash on delivery; interim financing and administration charge continued; matter adjourned for further hearing.

Orders

  • Continue the BIA proceedings under the CCAA in accordance with s.11.6 of the CCAA
  • Continue the relief granted in the BIA Orders including an Administration Charge in the amount of CAD 200000