Fiera Private Debt Fund v. SaltWire Network Inc.

Fiera Private Debt Fund v. SaltWire Network Inc.

On the initial CCAA hearing the Court appointed KSV as monitor because KSV had the greatest familiarity with SaltWire from prior advisory work, KSV demonstrated understanding of monitor duties, there was no evidentiary showing of a disqualifying conflict or bad faith, KSV’s assessment of the need for interim financing was persuasive, and the Court retained ultimate discretion despite prior contractual consents by SaltWire.

Citation
2024 NSSC 79
Parties
Debtor: SaltWire Network Inc.; Debtor: The Halifax Herald Limited; Debtor: Brace Holdings Limited; Debtor: Brace Capital Limited; Debtor: Titan Security & Investigation Inc.; Debtor: Headline Promotional Products Limited; Senior Secured Creditor: Fiera Private Debt Fund III LP; Senior Secured Creditor: Fiera Private Debt Fund V LP; General Partner of Fiera Funds: Fiera Private Debt GP Inc.; Proposed Monitor: KSV Restructuring Inc.; Proposed Monitor: Grant Thornton Limited
Court
Supreme Court of Nova Scotia
Jurisdiction
Canada
Judgment Date
13 March 2024
Procedural Posture
CCAA Application / Initial Hearing/initial Order
Outcome
Initial order under the CCAA to issue; KSV Restructuring Inc. appointed as monitor
Legal Topics
Monitor Appointment, Interim Financing, Initial CCAA Order, Conflict of Interest, Creditor Led Vs Debtor Led Proceedings
Source Language
English
Insolvency Commercial Law Monitor Appointment Interim Financing Initial CCAA Order Conflict of Interest Creditor Led Vs Debtor Led Proceedings

Case Brief

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Parties

SaltWire Network Inc.

Debtor

The Halifax Herald Limited

Debtor

Brace Holdings Limited

Debtor

Brace Capital Limited

Debtor

Titan Security & Investigation Inc.

Debtor

Headline Promotional Products Limited

Debtor

Fiera Private Debt Fund III LP

Senior Secured Creditor

Fiera Private Debt Fund V LP

Senior Secured Creditor

Fiera Private Debt GP Inc.

General Partner of Fiera Funds

KSV Restructuring Inc.

Proposed Monitor

Grant Thornton Limited

Proposed Monitor

Procedural Posture

CCAA Application / Initial Hearing/initial Order

Legal Issues

  1. 1 Which monitor should be appointed under s.11.7 of the CCAA
  2. 2 Whether KSV’s prior role with Fiera creates a disqualifying conflict or appearance of bias
  3. 3 Whether interim (DIP) financing is required and on what terms

Ratio Decidendi

On the initial CCAA hearing the Court appointed KSV as monitor because KSV had the greatest familiarity with SaltWire from prior advisory work, KSV demonstrated understanding of monitor duties, there was no evidentiary showing of a disqualifying conflict or bad faith, KSV’s assessment of the need for interim financing was persuasive, and the Court retained ultimate discretion despite prior contractual consents by SaltWire.

Court Disposition

Initial order under the CCAA to issue; KSV Restructuring Inc. appointed as monitor

Orders

  • Initial order under the Companies' Creditors Arrangement Act to be prepared and entered in form to be approved by the Court
  • KSV Restructuring Inc. is appointed as Court-appointed monitor