- Parties: The applicants included Groupe Sélection. The respondents included the National Bank of Canada. - Subject Matter: On Nov. 13, 2022, Groupe Sélection inc. filed an application under the Companies’ Creditors Arrangement Act (CCAA) to proceed with restructuring while protected from its creditors. On Nov. 14, 2022, National Bank of Canada, as agent of a banking syndicate composed of several major Canadian banks and financial institutions acting as main lenders of Groupe Sélection, filed a competing application for the issuance of an initial order in which it proposed its own restructuring process and the appointment of PricewaterhouseCoopers LLP (PwC) as monitor (syndicate application). The syndicate accused Groupe Sélection of not meeting its contractual commitments and obligations resulting from several loan agreements and other complementary contracts by which the syndicate advanced Groupe Sélection more than $272 million, now due and payable. As a result of the defaults, the syndicate had withdrawn its financial support. This lack of financial support and chronic lack of liquidity with no prospect of short-term improvement triggered insolvency proceedings. - Superior Court’s decision: Justice Pinsonnault granted the syndicate application in line with the conclusions sought under the terms of the initial order proposed by the syndicate. The judge used his broad discretion and ruled on important and controversial issues in the insolvency world. Justice Pinsonnault insisted on the exceptional nature of the syndicate application but concluded that the circumstances and the unique context in which Groupe Sélection found itself unequivocally justified not only the filing of the application by a creditor, but also its support by the court. - Appellate decision: On Nov. 28, 2022, the Quebec Court of Appeal dismissed Groupe Sélection's application for leave to appeal. Justice Kalichman confirmed that it was now well-established that creditors could apply for an initial order under the CCAA and conduct the restructuring process. He also supported Justice Pinsonnault’s reasons. He emphasized that Justice Pinsonnault rendered an extremely detailed judgment, used his judicial discretion in an exceptional and urgent context, and opted for the approach that he considered most consistent with the CCAA’s remedial objectives. - Date: The decision was released on Nov. 28, 2022. - Venue: Quebec Court of Appeal - Amount: The collective debt in this case amounted to $276 million.