In
Re
Kitchener Frame Limited, the Ontario
Superior Court of Justice (Commercial List) considered
three hot-button issues in a proposal proceeding under
Part III of the BIA. First, the Court granted
substantive consolidation of proceedings, finding that
the Court had jurisdiction to do so pursuant to s. 183
of the BIA. Second, the Court granted broad third
party releases in favour of the Applicants, a number of
third parties and any person liable through or
derivatively though any or all of the
beneficiaries. In granting such releases, the
Court found that the BIA does not prohibit third party
releases and found it was appropriate to grant such
releases where the criteria outlined for releases under
the CCAA was satisfied. Finally, the Court
revisited the interpretation of the BIA and the CCAA and
re-emphasized the principle that the statutes should be
harmoniously interpreted to the greatest extent
possible.
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