Sanovest Holdings Ltd. v. Ecoasis Developments LLP

Parties

Procedural Posture

Application to Amend Receivership Order / Application Hearing Concluded; Reasons for Judgment (order Granted)

Legal Issues

1. 1 Whether the Receivership Order should be amended to include the operations and business of Ecoasis Resort and Golf LLP (Resorts)
2. 2 Whether the Receiver should be authorized to take charge of and protect the Hotel Arbitration award
3. 3 Whether less intrusive alternatives (third‑party financing, status quo, court‑fashioned remedies) are viable

Ratio Decidendi

The Receivership Order was amended because the Receiver's extensive independent investigation established that Resorts was insolvent and its continued operation without receiver control risked irreversible loss of value; no viable, less intrusive alternative or acceptable third‑party financing existed; Sanovest, as secured creditor with contractual rights and in the interests of all stakeholders, met the onus to show it was just and convenient to expand the receivership to include Resorts and to bring the Hotel Arbitration under the Receiver's control to protect realizable value.

Court Disposition

Application granted in part; the Receivership Order was amended to include Resorts' business and the Receiver authorized to take charge of the Hotel Arbitration interest

Orders

• Amend Receivership Order dated September 18, 2024 to appoint Alvarez & Marsal Canada Inc. as receiver and manager over the operations and business of Ecoasis Resort and Golf LLP (Resorts) including the Resort Partnership's interest in the Hotel Arbitration
• Receiver authorized to take charge, protect and, if appropriate, collect and enforce any award arising from the Hotel Arbitration pursuant to s.243 BIA and s.39 LEA