Bankruptcy and Insolvency - Companies' Creditors Arrangement Act - Initial application
Company manufactured bedding products. Company had US and Canadian offices, with registered head office in Vancouver. Canadian branch was not profitable. Company sought restructuring due to outstanding indebtedness and limited access to credit, and facing severe liquidity constraints. Company brought application for several orders pursuant to Companies`Creditors Arrangement Act including Chapter 11 cases. Ruling was made. Chapter 11 cases, pursuant to US Bankrupcty Code was foreign proceedings for Canadian puspoes. Company was appointed foreign representative by US courts in Chapter 11 cases. Company`s centre of main interests (COMI) was in United States, which meant that COMI of all Chapter 11 debtors was in United States. Therefore Chapter 11 cases were recognized as foreign main proceedings. Stay of proceedings was necessary in order to implement proposed restructuring. First day order were recognized as Canadian and US operations of company were highly integrated. DIP order was approved.
Hollander Sleep Products, LLC et al., Re (2019), 2019 CarswellOnt 8720, 2019 ONSC 3238, Hainey J. (Ont. S.C.J. [Commercial List]).
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