Background

• Project Overview: The case involved the insolvency proceedings of a ski resort development on Brohm Ridge, British Columbia. Managed by Garibaldi at Squamish Inc. (GAS) and its Limited Partnership, the latter owed over $80 million and could not meet the environmental pre-construction conditions.
• Secured Creditors' Actions: Aquilini Development Limited Partnership and others, as secured creditors, aimed to acquire the Garibaldi entities through internal reorganization.

Legal Issues

• Bankruptcy and Insolvency Act (BIA): Ernst & Young Inc. was appointed as the receiver under section 243 of the BIA. The focus was on the legality of reverse vesting orders (RVOs) which are not typical under the BIA's emphasis on liquidation.
• Reverse Vesting Order (RVO): The receiver sought court approval to sell the Garibaldi entities' assets to the petitioners via an RVO, allowing business continuity and the retention of essential licenses.
• Provincial Legislation and RVO: British Columbia contested the RVO, arguing it bypassed environmental laws and property rights, challenging the BIA's jurisdiction for such approval.

Financial Aspects

• Transaction Costs: The petitioners' bid included a credit bid of about $73.45 million plus interest.
• Urgency and Economic Impact: Immediate financial action was required to prevent permit expiry and ensure the project's economic and employment benefits, potentially creating 4,000 jobs.

Conclusion and Judicial Considerations

• Court's Analysis: The court considered the RVO's necessity versus traditional asset transfers, balancing legal standards against the practical and economic impacts on stakeholders.