843504 Alberta Ltd., Re

• Jurisdiction: Alberta
• Court: Court of Queen's Bench of Alberta (Canada)
• Judge: Topolniski, J.
• Citation: (2003), 351 A.R. 222 (QB),2003 ABQB 1015
• Date: 10 November 2003

843504 Alta. Ltd., Re (2003), 351 A.R. 222 (QB)

MLB headnote and full text

Temp. Cite: [2004] A.R. TBEd. JA.107

In The Matter Of the Bankruptcy and Insolvency Act R.S.C. 1985, C. B-3, As Amended; and the Companies' Creditors Arrangement Act R.S.C. 1985, C. C-36, As Amended

And In The Matter Of a Plan of Compromise or Arrangement of 843504 Alberta Ltd. (formerly known as Skyreach Equipment Ltd.)

(0303 19663; 2003 ABQB 1015)

Indexed As: 843504 Alberta Ltd., Re

Alberta Court of Queen's Bench

Judicial District of Edmonton

Topolniski, J.

December 9, 2003.

Summary:

A creditor and the monitor of a debtor subject to a stay of proceedings under the Companies' Creditors Arrangement Act (Can.) applied for an extension of the stay.

The Alberta Court of Queen's Bench allowed the application.

Creditors and Debtors - Topic 8588

Debtors' relief legislation - Companies' creditors arrangement legislation - Stay of proceedings - Upon an application by a creditor and the monitor, the Alberta Court of Queen's Bench, in a decision dated December 9, 2003, extended a stay of proceedings until December 19, 2003, where: (1) the monitor would have a better opportunity to formulate and present a plan to the creditors; (2) with sufficient controls in place, an extension would prevent creditors from maneuvering for a better position; (3) it was inappropriate to allocate costs now since there was no certainty about what benefits would accrue to any given party; (4) a further assessment of good faith, due diligence and appropriateness would be made on December 19, 2003; (5) the court could not conclude that a liquidation sale would be inevitable; and (6) the prospect of a tax loss sale could have value for unsecured creditors.

Creditors and Debtors - Topic 8588

Debtors' relief legislation - Companies' creditors arrangement legislation - Stay of proceedings - A creditor and the monitor of a debtor applied for an extension of the stay - The creditor's affidavit was based upon the deponent's review of the monitor's reports and "merely" asserted that the monitor was acting diligently and in good faith, and that circumstances warranted the extension - The Alberta Court of Queen's Bench ruled that this offered nothing more than a conclusion about the very determinations that the court was required to make in deciding whether the test was satisfied - It was of very little assistance, and this form of conclusory affidavit was not acceptable - See paragraph 16.

Cases Noticed:

Rio Nevada Energy Inc., Re (2000), 283 A.R. 146 (Q.B.), refd to. [para. 5].

Syndicat national de l'amiante d'Asbestos Inc. v. Jeffrey Mines Inc., [2003] R.J.Q. 420; 40 C.B.R.(4th) 95 (C.A.), refd to. [para. 10].

United Used Auto & Truck Parts Ltd. et al., Re (2000), 135 B.C.A.C. 96; 221 W.A.C. 96; 2000 BCCA 146, refd to. [para. 13].

Sammi Atlas Inc., Re (1998), 59 O.T.C. 153 (Gen. Div.), refd to. [para. 13].

Campeau Corp., Re (1992), 10 C.B.R.(3d) 104 (Ont. Gen. Div.), refd to. [para. 13].

Blue Range Resource Corp., Re (1999), 245 A.R. 154; 1999 ABQB 1038, refd to. [para. 14].

Royal Bank of Canada v. Fracmaster Ltd. - see UTI Energy Corp. v. Fracmaster Ltd.

UTI Energy Corp. v. Fracmaster Ltd. (1999), 244 A.R. 93; 209 W.A.C. 93; 11 C.B.R.(4th) 230 (C.A.), refd to. [para. 14].

Anvil Range Mining Corp., Re (2002), 25 C.B.R.(4th) 1 (Ont. Sup. Ct.), affd. [2002] O.A.C. Uned. 186; 34 C.B.R.(4th) 156 (C.A.), refd to. [para. 15].

Lehndorff General Partner Ltd., Re (1993), 17 C.B.R.(3d) 24 (Ont. Gen. Div.), refd to. [para. 15].

Olympia & York Development Ltd., Re (1995), 34 C.B.R.(3d) 93 (Ont. Gen. Div.), refd to. [para. 15].

Canadian Red Cross Society, Re (1998), 72 O.T.C. 99; 5 C.B.R.(4th) 299 (Gen. Div.), refd to. [para. 15, 25].

Alberta Human Rights Commission v. Alberta Blue Cross Plan (1983), 48 A.R. 192 (C.A.), refd to. [para. 16].

Allen et al. v. Alberta et al. (2001), 286 A.R. 132; 253 W.A.C. 132; 2001 ABCA 171, refd to. [para. 16].

Hovsepian et al. v. Westfair Foods Ltd. et al. (2003), 341 A.R. 1; 2003 ABQB 641, refd to. [para. 16].

Consumers Packaging Inc., Re (2001), 150 O.A.C. 384; 27 C.B.R.(4th) 197 (C.A.), refd to. [para. 25].

PSI Net Ltd., Re (2001), 28 C.B.R.(4th) 95 (Sup. Ct.), refd to. [para. 29].

Liberty Oil & Gas Ltd. et al., Re [2002] A.R. Uned. 440 (Q.B.), refd to. [para. 30].

Counsel:

A. Robert Anderson (Blake, Cassels & Graydon LLP), for EdgeStone Capital Mezzanine Fund II Nominee, Inc.;

Emi R. Bossio (Peacock Linder & Halt), for Ingersoll-Rand Canada Inc.;

Michael McCabe (Reynolds Mirth Richards & Farmer LLP), for Proposal Trustee, PricewaterhouseCoopers LLP;

Kent Rowan (Ogilvie LLP), for GE Commercial Distribution Finance Canada Inc.;

Michael Penny and Stuart Weatherill (Emery Jamieson LLP), for Unknown Purchaser; John Deere Credit Inc.;

Darren Bieganek (Duncan & Craig LLP), for Transportation Lease Systems Inc.;

David Stratton (Davis & Company) for CNH Canada Ltd. (New Holland Construction) and New Holland (Canada) Credit Co.;

Jerry Hockin (Parlee McLaws), for JLG Industries Ltd. and CAFO Inc.;

Rick Reeson (Witten LLP), for Alberta Treasury Branches;

James MacLean (Witten LLP), for Bancorp Financial Services Inc., Bancorp First Mortgage Fund Inc. and Bancorp Investments (Fund 2) Ltd. et al.;

Steven Livingstone (McLennan Ross), for Citicapital Commercial Corp. and Capital City.

Topolnisky, J., of the Alberta Court of Queen's Bench, Judicial District of Edmonton, heard this application on November 10, 2003, and delivered the following memorandum of case management decision on December 9, 2003.