Application for extension of stay under Companies’ Creditors Arrangement Act (Can.) was granted

Ontario civil | Bankruptcy and Insolvency

Arrangements

Application for extension of stay under Companies’ Creditors Arrangement Act (Can.) was granted

Applicant, debtor company, applied for extension of stay of proceedings under Companies’ Creditors Arrangement Act (Can.). Application granted. Debtor established that circumstances existed that made order appropriate and that it acted and was acting in good faith and with due diligence. Request for extension of stay was supported by chief restructuring officer, monitor and principled stakeholders except for U Corp., who sought shorter extension. Debtor was entitled to longer stay it requested based on its estimation that sales and investment process that was underway would require more time than what U Corp. proposed to complete negotiations with successful bidder and satisfy any conditions. Longer extension furthered prospect of successful, going-concern restructuring. If that was not feasible then longer stay would be required to implement other arrangements to satisfy claims of creditors. Evidence was not sufficient to require shorter extension. It was not appropriate to impose conditions requiring delivery of information by debtor.
U.S. Steel Canada Inc., Re (May. 10, 2016, Ont. S.C.J., H. Wilton-Siegel J., CV-14-10695-00CL) 266 A.C.W.S. (3d) 295.

Free newsletter

Our newsletter is FREE and keeps you up to date on all the developments in the Ontario legal community. Please enter your email address below to subscribe.

Recent articles & video

Modern family arrangements, multi-jurisdictional presence raising estates complexity, say lawyers

Ontario Superior Court of Justice dismisses joint tenant's application to order property's sale

Ontario Court of Appeal allows statement of claim amendment in Bayer personal injury case

Ontario’s response to COVID’s long-term-care crisis lacks an ‘easy fix,’ says elder law lawyer

With more lawyers doing pro bono, profession can meet access-to-justice gap, says Lynn Burns

Ontario Superior Court orders costs for unreasonable conduct and bad faith in child support case

Most Read Articles

Occupier negligent in failing to timely salt icy roadway: Ont. CA

Ontario Superior Court orders costs for unreasonable conduct and bad faith in child support case

Ontario Bar Association launches peer support network for lawyers living with disabilities

Ontario’s response to COVID’s long-term-care crisis lacks an ‘easy fix,’ says elder law lawyer