Canada Case Law

Mercy Falls BC Inc. (Re)

Court

Supreme Court of British Columbia

The court found the petitioner acted in good faith and with due diligence, has more than a "kernel of a plan" (including default judgment against Studio, steps to enforce it in the U.S., resolved tax issues, repayment of senior lender, Monitor support, and adequate cashflow projections), and that extending the stay to November 30, 2026 is necessary and appropriate to permit enforcement and realizations for the benefit of creditors; extension granted.

Source excerpt

• Stay extension
• Companies' creditors arrangement act
• Default judgment enforcement
• Receiver appointment
• Tax refund realization
• Enforcement in united states

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Re CFFI Ventures Inc.

Court

Supreme Court of Nova Scotia

The Court held that on the narrow interim-stage analysis required for s.130 matters the applicant had demonstrated urgency, commercial sensitivity, good faith and statutory compliance sufficient to justify ex parte abridgement of filing deadlines and the grant of a limited, time‑bound stay to preserve the status quo; the Court declined the full interim relief sought and limited the order to a stay pending a come-back hearing where interested parties may be heard.

Source excerpt

• Plan of arrangement
• Interim stay of proceedings
• Ex parte relief
• Creditors' voting
• Support agreement
• Fairness opinion

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Li v. Frost

Court

Supreme Court of British Columbia

The court dismissed an interim receivership bid in an oppression proceeding, but ordered coordination for Montecito to repay ALNA US$3 million to address the CRA debt.

• Oppression remedy
• Interim receiver-manager
• Derivative action
• Tax assessment and cra enforcement
• Consent interlocutory injunction
• Interim relief and balance of convenience

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Good Natured Products Inc. (Re)

Court

Supreme Court of British Columbia

The court first refused approval of an RVO sale because it would unfairly defeat a secured success fee owed to the sales agent, then later approved an amended transaction.

• Companies' creditors arrangement act (ccaa)
• Reverse vesting orders (rvo)
• Sale approval
• Priority of charges
• Interpretation of 'proceeds'
• Court-ordered releases and exculpations

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Alderbridge Way GP Ltd. (Re)

Court

Supreme Court of British Columbia

The Court directed a bifurcated liability trial in this CCAA proceeding, with affidavit evidence, fixed deadlines, and a three-week hearing starting April 29, 2024.

• Trial management
• Summary trial / affidavit evidence
• Bifurcation of issues
• Equitable subordination
• Good faith in contracting
• Loan syndication dispute

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1299362 B.C. Ltd. v. Marine Investments Inc.

Court

Supreme Court of British Columbia

The court allowed a foreclosure appeal in part, struck a conditional order absolute, and adjourned a further redemption-extension application to be reset with the order-absolute application.

• Extension of redemption period
• Order absolute
• Conditional/guillotine orders
• Conduct of sale
• Standard of review
• Foreclosure

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Nabis Holdings Inc. (Re)

Court

Supreme Court of British Columbia

The court authorized Nabis Holdings Inc. to call an extraordinary noteholders’ meeting on abridged notice under the BCA and ordered each side to bear its own costs.

• Plan of arrangement
• Court discretion
• Notice abridgment
• Creditors' meeting
• Support agreement
• Plan-of-arrangement

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Worldspan Marine Inc. v. Sargeant III

Court

Federal Court of Appeal

The Federal Court properly excluded late affidavits that were not filed within the FC Claims Process Order and for which no special circumstances were shown; established maritime priority rules apply and there was no basis to reorder priorities; although breaches of the VCA could in principle be relevant as a basis for set-off, no provable offset was shown on the record, so Sargeant's mortgage claim has priority and he is entitled to the sale proceeds (US$5,000,000) subject to sheriff fees and disbursements.

Source excerpt

• Vessel arrest and judicial sale
• Priority of in rem claims and mortgages
• Builder's mortgage and set-off
• Admissibility of late affidavits under claims process orders
• Relation between in rem and in personam proceedings

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iAnthus Capital Holdings, Inc. v. Walmer Capital Limited

Court

British Columbia Court of Appeal

La Cour d’appel rejette l’appel contre l’approbation d’un plan d’arrangement d’iAnthus et refuse la nouvelle preuve financière proposée, concluant que l’erreur relevée n’était pas déterminante.

• Plan of arrangement approval
• Release and injunction
• Shareholder disclosure
• Fresh/fresh or new evidence (palmer test)
• Security interests
• Fairness opinion

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iAnthus Capital Holdings, Inc. (Re)

Court

Supreme Court of British Columbia

The court approved an amended plan of arrangement for iAnthus, holding it had jurisdiction to consider the revised plan and that the narrower release was lawful and fair.

• Plan of arrangement
• Release and injunction
• Ancillary orders under s.291(4) bca
• Shareholder approval and amendments
• Fiduciary duty and carve-outs
• Plan-of-arrangement

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