Issue: The conflict between the debtor's redemption right and the receiver's authority to finalize a property sale.
Background:
The receiver, Pollard & Associates Inc., sought approval for the sale of properties at 33 and 35 Hawarden Crescent, Toronto, after conducting a marketing and sales process, asserting the sale price was favorable.
The debtor companies contested, aiming to redeem the properties, despite lacking adequate funds.
Legal Proceedings:
The court denied the debtors' request for adjournment to gather funds for redemption, considering it prejudicial to the receiver's motion outcome.
The court emphasized the extensive efforts by the receiver in marketing the properties, resulting in a fair sale process.
Decision:
The Receiver’s motion for an Approval and Vesting Order (AVO) was granted, allowing the property sale to proceed.
The debtors' cross-motion for delaying the sale was dismissed due to their insufficient evidence of imminent ability to redeem.
Analysis:
The court applied the Soundair test, focusing on the receiver’s efforts, fairness, and interests of all parties, concluding the sale process was robust and equitable.
The court acknowledged the debtor's right to redeem but prioritized the receiver’s executed sale process due to the debtor's failure to present viable financing for redemption.
Outcome: The sealing order for related sale documents was granted to protect potential future realizations if the sale did not close as planned.
