In the Matter of the Proposal of Cantrail Coach Lines Ltd.

In the Matter of the Proposal of Cantrail Coach Lines Ltd.

The extension was granted because the court found Cantrail had acted in good faith and with due diligence, was likely able to present a viable proposal if given the extension, and the opposing secured creditor failed to demonstrate that it would be materially prejudiced; accordingly a 45-day extension was ordered and the creditor's termination and related applications were dismissed.

Citation
2005 BCSC 351
Parties
Insolvent Person / Applicant: Cantrail Coach Lines Ltd.; Secured Creditor / Respondent: VFS Canada Inc.
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
1 March 2005
Procedural Posture
Proposal Under Bankruptcy and Insolvency Act / Application for Extension of Time Under S.50.4(9); Cross Application Under S.50.4(11)
Outcome
Extension of time granted; Volvo's applications dismissed
Legal Topics
Proposal Period Extension, Termination of Proposal, Good Faith and Due Diligence, Material Prejudice, Rehabilitation
Source Language
English
Bankruptcy and Insolvency Commercial Law Secured Transactions Corporate Restructuring Proposal Period Extension Termination of Proposal Good Faith and Due Diligence Material Prejudice +1 more

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Parties

Cantrail Coach Lines Ltd.

Insolvent Person / Applicant

VFS Canada Inc.

Secured Creditor / Respondent

Procedural Posture

Proposal Under Bankruptcy and Insolvency Act / Application for Extension of Time Under S.50.4(9); Cross Application Under S.50.4(11)

Legal Issues

  1. 1 Whether the insolvent person has acted and is acting in good faith and with due diligence
  2. 2 Whether the insolvent person would likely be able to make a viable proposal if the extension were granted
  3. 3 Whether any creditor would be materially prejudiced by granting the extension

Ratio Decidendi

The extension was granted because the court found Cantrail had acted in good faith and with due diligence, was likely able to present a viable proposal if given the extension, and the opposing secured creditor failed to demonstrate that it would be materially prejudiced; accordingly a 45-day extension was ordered and the creditor's termination and related applications were dismissed.

Court Disposition

Extension of time granted; Volvo's applications dismissed

Orders

  • Grant extension of time to file a proposal for a further 45 days from March 3, 2004
  • Dismissal of VFS Canada Inc.'s applications to terminate the proposal period and to substitute the trustee (substitution not argued)