Requested relief beyond that usually considered at initial hearings but appropriate

Ontario civil | Bankruptcy and Insolvency

ARRANGEMENTS

Requested relief beyond that usually considered at initial hearings but appropriate

Application by debtors for initial order under Companies’ Creditors Arrangement Act (Can.). Debtors were related entities involved in replication and distribution of CDs and DVDs across North America and Europe. Debtors experienced significant declines in revenue as result of economic downturn. Debtors were hoping to sell substantially all of their business as going concern. Application granted. Debtors met all qualifications established for relief under act. Requested relief went beyond what was usually considered at initial hearings but requested relief was appropriate in circumstances of this case. Debtors had spent considerable period of time reviewing their alternatives and had done so in consultative manner with their senior secured lenders. Senior secured lenders supported application notwithstanding that they would suffer significant shortfall on their positions. Certain sensitive financial information was sealed.
Cinram International Inc. (Re) (June 25, 2012, Ont. S.C.J. (Comm. List), Morawetz J., File No. CV-12-9767-00CL) 217 A.C.W.S. (3d) 11 (32 pp.).

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