Atlantic Sea Cucumber Limited (re)

Atlantic Sea Cucumber Limited (re)

Application dismissed because, on a balance of probabilities, the Debtor failed to demonstrate present and continuing good faith and due diligence under s.50.4(9)(a) BIA despite meeting the objective viability and prejudice limbs; the Registrar, even assuming timeliness, would not exercise discretion to grant the extension due to strategic last‑minute conduct, inadequate preparation of a proposal, and ongoing creditor/security disputes.

Citation
2023 NSSC 238
Parties
Applicant / Debtor: Atlantic Sea Cucumber Limited; Trustee: MSI Spergel Inc.; Objecting Creditor: Weihai Tawei Haiyang Aquatic Food Co. Ltd.; Registrar in Bankruptcy: Raffi A. Balmanoukian
Court
Supreme Court of Nova Scotia
Jurisdiction
Canada
Judgment Date
21 July 2023
Procedural Posture
Bankruptcy and Insolvency — NOI / Proposal Process Under the Bia; Contested Conversion to CCAA / Emergency Application for Extension of Time Under S.50.4(9) Bia; Hearing on July 17, 2023; Application Dismissed by Registrar (reasons Issued)
Outcome
Application for extension of time under s.50.4(9) BIA dismissed
Legal Topics
Extension of Time Under S.50.4(9) BIA, Good Faith and Due Diligence in Proposal Process, Proposal Viability, Conversion to CCAA, Creditor Security Disputes, Discretionary Relief
Source Language
English
Bankruptcy and Insolvency Corporate Restructuring (ccaa) Civil Procedure Extension of Time Under S.50.4(9) BIA Good Faith and Due Diligence in Proposal Process Proposal Viability Conversion to CCAA Creditor Security Disputes +1 more

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Parties

Atlantic Sea Cucumber Limited

Applicant / Debtor

MSI Spergel Inc.

Trustee

Weihai Tawei Haiyang Aquatic Food Co. Ltd.

Objecting Creditor

Raffi A. Balmanoukian

Registrar in Bankruptcy

Procedural Posture

Bankruptcy and Insolvency — NOI / Proposal Process Under the Bia; Contested Conversion to CCAA / Emergency Application for Extension of Time Under S.50.4(9) Bia; Hearing on July 17, 2023; Application Dismissed by Registrar (reasons Issued)

Legal Issues

  1. 1 Whether the application for an extension of time under s.50.4(9) BIA should be granted
  2. 2 Whether the application was timely (whether the stay expired on Saturday and the filing on Monday was out of time)
  3. 3 Whether the Debtor demonstrated present and continuing good faith and due diligence

Ratio Decidendi

Application dismissed because, on a balance of probabilities, the Debtor failed to demonstrate present and continuing good faith and due diligence under s.50.4(9)(a) BIA despite meeting the objective viability and prejudice limbs; the Registrar, even assuming timeliness, would not exercise discretion to grant the extension due to strategic last‑minute conduct, inadequate preparation of a proposal, and ongoing creditor/security disputes.

Court Disposition

Application for extension of time under s.50.4(9) BIA dismissed

Orders

  • Application dismissed
  • Debtor’s solicitor (Mr. O’Keefe) to provide a copy of this decision to the service list forthwith