Peakhill Capital Inc. v. Southview Gardens Limited Partnership

Peakhill Capital Inc. v. Southview Gardens Limited Partnership

The Court has jurisdiction under s.183 of the BIA to grant an RVO and, applying established authorities and the Harte Gold factors, it is appropriate to grant the RVO here because it preserves and maximizes value for creditors, does not prejudice other creditors, and does not contravene the PTTA where title is not...

Source-derived case information.

Citation
2023 BCSC 1476
Parties
Petitioner: Peakhill Capital Inc.; Respondent: Southview Gardens Limited Partnership; Respondent: Southview Gardens BT Ltd.; Respondent: Southview Gardens Properties Ltd.; Respondent: Zhen Yu Zhong; Respondent: Junchao Mo; Respondent: Coromandel Properties (2016) Ltd.; Respondent: Baystone Properties (2016) Ltd.; Respondent: Coromandel Holdings Ltd.; Receiver: KSV Restructuring Inc.; Secured Creditor: Cenyard Pacific Developments Inc.; Purchaser: Cenyard Southview Gardens Ltd.; Province / Opposing Party: His Majesty the King in right of the Province of British Columbia
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
25 August 2023
Procedural Posture
Receivership Sale Approval / Application for Approval of Sale and Reverse Vesting Order (contested)
Outcome
Application granted; approval and reverse vesting order granted.
Legal Topics
Reverse Vesting Order, Approval and Vesting Order, Property Transfer Tax, Jurisdiction, Releases, Harte Gold Factors
Source Language
english
Insolvency Law Receivership Property Tax Law Corporate Restructuring Reverse Vesting Order Approval and Vesting Order Property Transfer Tax Jurisdiction +2 more

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Parties

Peakhill Capital Inc.

Petitioner

Southview Gardens Limited Partnership

Respondent

Southview Gardens BT Ltd.

Respondent

Southview Gardens Properties Ltd.

Respondent

Zhen Yu Zhong

Respondent

Junchao Mo

Respondent

Coromandel Properties (2016) Ltd.

Respondent

Baystone Properties (2016) Ltd.

Respondent

Coromandel Holdings Ltd.

Respondent

KSV Restructuring Inc.

Receiver

Cenyard Pacific Developments Inc.

Secured Creditor

Cenyard Southview Gardens Ltd.

Purchaser

His Majesty the King in right of the Province of British Columbia

Province / Opposing Party

Procedural Posture

Receivership Sale Approval / Application for Approval of Sale and Reverse Vesting Order (contested)

  1. 1 Does the Court have jurisdiction to grant an RVO in BIA receivership proceedings?
  2. 2 Is it appropriate to grant an RVO solely to avoid Property Transfer Tax in these circumstances?
  3. 3 Does the Property Transfer Tax Act preclude an RVO where title is not transferred?

Ratio Decidendi

The Court has jurisdiction under s.183 of the BIA to grant an RVO and, applying established authorities and the Harte Gold factors, it is appropriate to grant the RVO here because it preserves and maximizes value for creditors, does not prejudice other creditors, and does not contravene the PTTA where title is not transferred and no regulation deems nominee share transfers taxable; the Receiver's lack of a positive recommendation was not determinative and the releases are necessary for the RVO transaction.

Court Disposition

Application granted; approval and reverse vesting order granted.

Orders

  • Approval and reverse vesting order granted substantially in the form attached as Schedule "C" to the Receiver's Notice of Application filed June 30, 2023
  • Transaction approved to proceed by way of Reverse Vesting Order to Cenyard Southview Gardens Ltd.