Skeena Cellulose Inc. (Re)

Skeena Cellulose Inc. (Re)

The Court dismissed the applicants' motions: the Come-back Order authorized termination of replaceable contracts as part of legitimate downsizing and consolidation, the late filing of the Monitor's report did not cause prejudice sufficient to void the process, and ordering specific performance would create an impermissible preference; applicants must pursue claims as creditors under the Plan.

Citation
2002 BCSC 1280
Parties
Petitioner/debtor: Skeena Cellulose Inc.; Associated Company: Orenda Forest Products Ltd.; Associated Company: Orenda Logging Ltd.; Associated Company: 9753 Acquisition Corp.; Applicant/contractor: Clear Creek Contracting Ltd.; Applicant/contractor: Jasak Logging Ltd.
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
4 September 2002
Procedural Posture
Companies' Creditors Arrangement Act (ccaa) Proceeding / Interlocutory Application/motion for Declaration Re Termination of Replaceable Contracts
Outcome
Applicants' motions dismissed; declaration that terminations were invalid denied
Legal Topics
CCAA Restructuring, Replaceable/evergreen Contracts, Specific Performance in Insolvency, Creditor Equality and Preferences, Forest Act Obligations, Compliance With Court Orders and Monitor Reporting
Source Language
English
Insolvency Law Contract Law Statutory/administrative Law Forestry Law CCAA Restructuring Replaceable/evergreen Contracts Specific Performance in Insolvency Creditor Equality and Preferences +2 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 4 Authorities cited 10 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Skeena Cellulose Inc.

Petitioner/debtor

Orenda Forest Products Ltd.

Associated Company

Orenda Logging Ltd.

Associated Company

9753 Acquisition Corp.

Associated Company

Clear Creek Contracting Ltd.

Applicant/contractor

Jasak Logging Ltd.

Applicant/contractor

Procedural Posture

Companies' Creditors Arrangement Act (ccaa) Proceeding / Interlocutory Application/motion for Declaration Re Termination of Replaceable Contracts

Legal Issues

  1. 1 Whether CCAA/ Come-back Order authorized termination of Forest Act replaceable logging contracts
  2. 2 Whether SCI complied with the Come-back Order requirement for a Monitor's report filed 21 days prior to implementation
  3. 3 Whether applicants were prejudiced by late filing of the Monitor's report and premature notices

Ratio Decidendi

The Court dismissed the applicants' motions: the Come-back Order authorized termination of replaceable contracts as part of legitimate downsizing and consolidation, the late filing of the Monitor's report did not cause prejudice sufficient to void the process, and ordering specific performance would create an impermissible preference; applicants must pursue claims as creditors under the Plan.

Court Disposition

Applicants' motions dismissed; declaration that terminations were invalid denied

Orders

  • Applicants' motions dismissed
  • No declaration that the March 2002 terminations were invalid