Background:
MCAP Financial Corporation, the petitioner, initiated proceedings after QRD (Willoughby) Holdings Inc. and related entities defaulted on their loans. The assets in question were part of a development project. MNP Ltd. was appointed as receiver and arranged the sale of the assets to Redekop Ferrario Properties (DD) Corp. for $35.31 million. An Asset Vesting Order (AVO) was granted earlier, but MNP later sought approval for a Reverse Vesting Order (RVO) to avoid transferring unwanted liabilities to the purchaser.

Legal Arguments/Issues:
MNP Ltd. applied to approve the RVO transaction, arguing that it would enable Redekop to retain valuable assets, such as development permits and agreements with the Township of Langley, without assuming unwanted liabilities. The issue was whether the RVO should be approved based on the "Harte Gold" factors, which assess fairness, creditor consultations, and asset market value.

Decision:
The court found that MNP satisfied the necessary conditions for approving the RVO. It allowed Redekop to avoid $1.68 million in property transfer taxes, justifying the $842,000 increase in the purchase price. The court concluded that the process was fair and in the best interests of creditors.

Costs/Awards:
The $842,000 purchase price increase, after deducting costs and fees, was awarded to Canadian Mortgage Servicing Corporation (CMSC). The Receiver’s borrowings were approved at $2.789 million to finalize the transaction.