Key Issues:

1. Approval of the sale of real property owned by Churchill Lands United Inc. under a court-supervised receivership process.
2. Examination of whether the sale price met the test of being commercially reasonable under the Royal Bank of Canada v. Soundair Corp. framework.
3. Granting of a sealing order for sensitive financial details pending transaction completion.

Factual Background:

• The property in question was subject to receivership under the Bankruptcy and Insolvency Act and the Courts of Justice Act.
• A court-approved sale process was managed by KSV Restructuring Inc. (the Receiver).
• No bids were initially received during the marketing phase. A subsequent offer led to a Sale Agreement with 1001024143 Ontario Inc.
• The purchase price was significantly lower than previous appraisals due to undisclosed adverse factors influencing market value.

Court Rulings:

1. Approval of Sale Agreement:

   • The court applied the Soundair principles, concluding that:
     • The Receiver acted prudently and transparently in conducting the sale process.
     • The property’s market exposure and the sale process complied with court orders.
     • The Sale Agreement was the highest and best offer under the circumstances.
   • The objections by the debtor were deemed insufficient to override the sale process's integrity.

2. Sealing Order:

   • Confidential financial details were sealed to preserve sale integrity and stakeholder interests.
   • The order would expire upon transaction completion.

3. Discharge and Fees:

   • The Receiver was authorized for discharge upon transaction closure and filing a discharge certificate.
   • Professional fees were deemed reasonable and approved.

The court did not specify a total monetary award or costs but directed that the sale proceeds be used to satisfy the senior secured creditor (Kingsett).