Douglas Channel LNG Partnership Obtains CCAA Protection
Douglas Channel LNG Partnership has been granted creditor
protection under Canada's Companies Creditors Arrangement
Act (the "CCAA") by the Supreme Court of British
Columbia. Douglas Channel had embarked on developing an LNG
facility in the Kitimat area of British Columbia which was intended
to serve the fast-growing Asian market for liquefied natural gas.
At its peak, the intended facility would have processed over 100
million cubic feet of LNG per day. Douglas Channel filed with over
$100 million in liabilities and with assets that were valued at
less than 25% of that amount. A format for a restructuring plan has
not yet been announced. The Monitor in the CCAA proceedings is
Grant Thornton Limited. The Court has set December 6, 2013, for a
hearing on the extension of Douglas Channel's CCAA protection.
Affiliated companies obtaining protection included BC LNG Export
Co-operative LLC and DCEP Gas Management Ltd.
Mobilicity Sale Proceedings
Mobilicity, one of Canada's smaller telecommunications
companies, recently obtained CCAA protection from the Ontario
Superior Court of Justice (Commercial List) after failing to gain
regulatory approval for its acquisition by one of Canada's
three major telecom companies. The Ontario Court appointed Ernst
Young Inc. of Toronto as Monitor in Mobilicity CCAA
proceedings. Mobilicity is carrying on business in the normal
course during its period of CCAA protection assisted by a $30
million DIP facility. Recently the Ontario Court approved a sale
process for substantially all of Mobilicity's business and
assets. Interested bidders must be accepted as qualified bidders
and must provide a confidentiality agreement by 10 p.m. on December
2, 2013. Mobilicity filed for CCAA protection with over $245
million in secured debt and a relatively small amount of unsecured
Fletcher Leisure Group Ltd. Placed in Receivership
Montreal sports and leisure products group, Fletcher Leisure
Group Limited ("the Fletcher Group") has been placed in
receivership by the Superior Court for the Province of Quebec with
liabilities in the range of $30 million. The Receiver is
PriceWaterhouseCoopers of Montreal. The Receiver has recently
announced an agreement for the sale of the Fletcher Group's
business as a result of an auction in the receivership. The order
appointing the Receiver also authorized it to seek recognition
under Chapter 15 of the United States Bankruptcy Code and an order
granting Chapter 15 protection has been obtained from the
Bankruptcy Court for the Southern District of New York. The
prospective purchaser is Fame Jeans Inc. of Montreal. The Fletcher
Group manufactured and distributed leisure and golf equipment,
accessories and sportswear under a number of internationally-known
Materials on Chapter 15
Bruce Leonard participated in the Annual Meeting of the National
Conference of Bankruptcy Judges in Atlanta earlier this month on
behalf of the American College of Bankruptcy. Bruce's materials
included a listing of current articles and comments on procedure
and proceedings under Chapter 15 of the United States Bankruptcy
Code and a listing of all Chapter 15 cases we have been able to
locate. Although no such listings can be exhaustive, we believe
that they reasonably complete as at October 2013 and copies are
available from Bruce Leonard or any other member of the Cassels
Brock Restructuring and Insolvency Group. We would be glad to
be pointed to other cases and other articles which could be added
to the lists.
Canadian International Restructuring Law Firm of the Year
Corporate INTL, a UK based publication has rated the
firm's Restructuring and Insolvency Group as Canada's
International Restructuring Law Firm of the Year. We are
honoured by this distinction. The award appears in Corporate
INTL Global Legal Awards 2013.
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The Supreme Court of British Columbia made an order that the funds in a Registered Disability Savings Plan (RDSP) could not be seized by the Trustee-in-Bankruptcy of the bankrupt beneficiary to satisfy the claims of creditors.
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