Amy Sun-Gifford (Re)

Amy Sun-Gifford (Re)

The court refused to find that the s.173 allegations were proved, found the Amended Proposal had been overwhelmingly approved by informed creditors and represented the only viable means of recovery; third‑party funding did not leave creditors worse off, therefore the Proposal is reasonable and calculated to benefit the general body of creditors and is approved under s.59 BIA.

Citation
2002 BCSC 640
Parties
Trustee: MacKay & Company Ltd.; Debtor: Amy Sun-Gifford; Creditor: Margaret Wu
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
26 April 2002
Procedural Posture
Bankruptcy / Approval of Amended Proposal (in Chambers)
Outcome
Amended Proposal approved
Legal Topics
Proposal Approval Under S.59 BIA, Refusal of Discharge Considerations Under S.173 BIA, Creditor Voting and Acceptance, Third‑party Financing of Proposals, Cross‑examination and Investigation of Allegations
Source Language
English
Bankruptcy Insolvency Civil Procedure Proposal Approval Under S.59 BIA Refusal of Discharge Considerations Under S.173 BIA Creditor Voting and Acceptance Third‑party Financing of Proposals Cross‑examination and Investigation of Allegations

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Parties

MacKay & Company Ltd.

Trustee

Amy Sun-Gifford

Debtor

Margaret Wu

Creditor

Procedural Posture

Bankruptcy / Approval of Amended Proposal (in Chambers)

Legal Issues

  1. 1 Whether the Amended Proposal is reasonable and calculated to benefit the general body of creditors under s.59 of the Bankruptcy and Insolvency Act
  2. 2 Whether facts alleged under s.173 of the Bankruptcy and Insolvency Act have been proved so as to justify rejection of the Proposal
  3. 3 Whether third‑party financing of the Proposal renders it unacceptable or exposes creditors to greater risk

Ratio Decidendi

The court refused to find that the s.173 allegations were proved, found the Amended Proposal had been overwhelmingly approved by informed creditors and represented the only viable means of recovery; third‑party funding did not leave creditors worse off, therefore the Proposal is reasonable and calculated to benefit the general body of creditors and is approved under s.59 BIA.

Court Disposition

Amended Proposal approved

Orders

  • The Amended Proposal dated January 9, 2002 is approved.