Canada Case Law

0989705 B.C. Ltd. (Re)

Court

Supreme Court of British Columbia

The court exercised its discretion under ss.11 and 36 CCAA to approve the proposed sale and associated Approval and Vesting Order including reverse vesting aspects: Romspen had indisputably advanced substantial funds and held a valid first‑ranking mortgage; asserted equitable set-off claims do not extinguish or invalidate Romspen's secured claim and do not preclude a sale under the CCAA; the s.36(3) factors and applicable authorities weigh in favour of approval because the Monitor conducted robust market processes producing no viable cash alternative, there is urgent risk of asset deteriorati…

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• Credit bid
• Sale approval under ccaa
• Set-off
• Security priority
• Reverse vesting order
• Monitoring and sale processes

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Bank of Montreal v. Makhija

Court

Court of Appeal for Ontario

The Court of Appeal for Ontario dismissed the Bank of Montreal’s appeal from the dismissal of its civil fraud claim against Makhija.

• Fraudulent misrepresentation
• Recklessness
• Personal guarantee
• Default judgment
• Reliance
• Adequacy of reasons

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Fox Island Development Ltd. v. Kensington Union Bay Properties Nominee Ltd.

Court

Supreme Court of British Columbia

The court held that the termination notice was a prohibited act in violation of the stay under the ARRO and thus of no force; the Digital Accounts are assets of Hotel Versante included within the Purchased Assets under the approved sale and must be delivered to the Receiver to preserve operations and effect the sale; solicitor-and-client costs were awarded against 1036524 B.C. Ltd. for deliberate interference with the sale.

Source excerpt

• Receivership
• Stay of proceedings
• Sale approval
• Digital assets
• Trademark
• Costs

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Shape Capital Corp. v. Keltic (Prior) Development Limited

Court

Supreme Court of British Columbia

The court approved a Minimum Sales Price Order authorizing the Receiver to sell individual strata units at no less than the bottom of the price ranges contained in the confidential appendix and to obtain vesting orders by desk application, provided the Receiver gives seven calendar days written notice to any person with a charge that would be vested away; the order was time‑limited to expire on February 19, 2027 unless renewed. The court also approved the Receiver's activities to date. The decision rested on Soundair considerations, evidence of reasonable marketing and valuation, support from…

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• Minimum sales price order
• Vesting orders
• Notice to subsequent chargeholders
• Builders' liens
• Approval of receiver's activities
• Deference to receiver

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Bank of Nova Scotia v. Fraser Valley Renewables Ltd.

Court

Supreme Court of British Columbia

The court approved the sale because the Receiver conducted a fair, competitive and adequately publicized marketing process consistent with Soundair given the pressing environmental risks and holding costs; the Purchaser demonstrated financing and remediation capacity and the sale on "as is, where is" terms was justified. The court authorized the Receiver to assign the Corporate Debtors into bankruptcy because the Corporate Debtors were insolvent, bankruptcy would likely occur and would be in stakeholders' interests by enabling trustee investigatory powers and potentially reordering CRA deemed…

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• Sale approval under receivership
• Soundair principles
• Assignment into bankruptcy by receiver
• Deemed trust and priority (cra)
• Right of redemption
• Sealing of confidential materials

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Sanovest Holdings Ltd. v. Ecoasis Developments LLP

Court

Supreme Court of British Columbia

The Receivership Order was varied to bring the Bear Mountain Litigation within the receivership because the litigation's outcome is materially intertwined with the receivership distributions and asset quantum, variation of a consent receivership order is permissible without a demonstrated change in material facts, and s.187(5) BIA supports inclusion to preserve the single proceeding model and avoid inconsistent findings.

Source excerpt

• Receivership
• Variation of court order
• Derivative actions
• Oppression remedy
• Case management
• Sale approval

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Sirois (Re)

Court

Supreme Court of British Columbia

The court dismissed Sebastien Sirois’s discharge application under the BIA, citing unresolved concerns about undisclosed assets, lifestyle evidence, and the need for further investigation.

• Discharge of bankrupt
• Section 172 bia
• Section 173 bia
• Trustee's report (s.170)
• S.163 examinations
• Alleged undisclosed assets

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Conian Developments Inc. (Re)

Court

Supreme Court of British Columbia

Appeal from a bankruptcy trustee’s partial disallowance of a creditor’s proof of claim was dismissed. The court found no palpable and overriding error.

• Claims adjudication
• Notice of disallowance
• Substantive consolidation
• Fresh evidence on appeal
• Standard of review
• Bankruptcy

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Cameron Stephens Mortgage Capital Ltd. v. Square Nine King George Development Ltd.

Court

Supreme Court of British Columbia

The court granted Square Nine interim CCAA relief and adjourned the competing receivership application, finding CCAA a viable alternative while sales and marketing continued.

• Receivership
• Companies' creditors arrangement act (ccaa)
• Dip financing
• Administration charge
• Redma disclosure requirements
• Appointment of monitor

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Re: 1527920 BC Ltd.

Court

Supreme Court of British Columbia

The court refused s. 11 CCAA relief to decide an IP assignment dispute after the restructuring had closed, finding the proposed summary process inappropriate.

• Assignment validity
• Jurisdiction under s.11 ccaa
• Summary/expedited procedure
• Restructuring (rvo)
• Single proceeding model
• Due diligence in insolvency

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