Extension of Stay Period: Lynx successfully sought an extension of the stay period under the Companies’ Creditors Arrangements Act (CCAA) to September 30, 2024.

Airport Improvement Fees (AIF) Dispute: The main issue was whether Lynx had properly remitted AIF collected from passengers to airport authorities before filing for insolvency.

Costs: No costs were awarded to either party to conserve limited funds for creditor distribution, consistent with general CCAA proceedings.

Key Legal Principles:

Trust and Agency: The court differentiated between trust and agency relationships, noting that an agency does not automatically imply a trust unless explicitly stated. Constructive Trusts: The court declined to impose a constructive trust without evidence of wrongful conduct or unjust enrichment. Contractual Discretion: The court upheld Toronto Airport's discretion to apply a Letter of Credit to any debt, including AIF, unless specifically restricted by contract terms.

Court Decisions:

Toronto Airport:

• Lynx's request for a declaration that all pre-filing AIF was remitted was denied.
• Toronto Airport's request for a trust declaration over unremitted AIF and for Lynx to release those funds was approved.

Other Airports:

• The court rejected the argument that Lynx's AIF collection under the Memorandum of Agreement (MOA) established a trust, as the MOA explicitly disclaimed any intention to create such a relationship.
• A constructive trust claim was also dismissed due to clear contractual terms negating this relationship.