bcMetals Corporation v. American Bullion Minerals Ltd.

bcMetals Corporation v. American Bullion Minerals Ltd.

The chambers judge did not err in principle in weighing the receiver-manager's recommendation and approving the respondent's refinancing proposal because the directors offered no concrete competing proposal at the hearing, the late proposal was untimely, and the decision fell within the judge's proper exercise of discretion; accordingly leave to appeal was refused.

Citation
2004 BCCA 114
Parties
Respondent (plaintiff): bcMetals Corporation; Appellant (defendant): American Bullion Minerals Ltd.
Court
British Columbia Court of Appeal
Jurisdiction
Canada
Judgment Date
2 March 2004
Procedural Posture
Application for Leave to Appeal From Chambers Judge Order / Leave Application at Court of Appeal From Chambers Judgment Approving Refinancing Proposal
Outcome
Application for leave to appeal dismissed; application for stay dismissed; cross-application for security for costs dismissed
Legal Topics
Receivership and Receiver Manager Duties, Directors' Residual Rights in Receivership, Personal Property Security Act Voluntary Foreclosure, Refinancing and Redemption Proposals, Judicial Review of Discretionary Interlocutory Orders
Source Language
English
Corporate Law Insolvency and Restructuring Receivership Secured Transactions Civil Procedure Receivership and Receiver Manager Duties Directors' Residual Rights in Receivership Personal Property Security Act Voluntary Foreclosure +2 more

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Parties

bcMetals Corporation

Respondent (plaintiff)

American Bullion Minerals Ltd.

Appellant (defendant)

Procedural Posture

Application for Leave to Appeal From Chambers Judge Order / Leave Application at Court of Appeal From Chambers Judgment Approving Refinancing Proposal

Legal Issues

  1. 1 Whether the chambers judge erred in law or principle by giving weight to the receiver-manager's recommendation over the directors' position
  2. 2 Whether the directors retained and properly exercised a statutory right to redeem prior to foreclosure or sale
  3. 3 Whether a late refinancing proposal should be considered by the court

Ratio Decidendi

The chambers judge did not err in principle in weighing the receiver-manager's recommendation and approving the respondent's refinancing proposal because the directors offered no concrete competing proposal at the hearing, the late proposal was untimely, and the decision fell within the judge's proper exercise of discretion; accordingly leave to appeal was refused.

Court Disposition

Application for leave to appeal dismissed; application for stay dismissed; cross-application for security for costs dismissed

Orders

  • Leave to appeal dismissed
  • Application for a stay dismissed