The case AFC Mortgage Administration Inc. v. Sunrise Acquisitions (Elmvale) Inc., 2024 ONCA 764, involves a dispute stemming from a receivership proceeding under the Bankruptcy and Insolvency Act (BIA). Below are key points from the decision:

• Receivership Orders (February and April 2024): The court placed the Debtors (Sunrise Acquisitions and individuals) under receivership. The Receiver was authorized to sell various properties without a specific realization sequence, despite the Debtors' attempts to prioritize certain sales to retain ownership of other properties.

• Approval and Vesting Order (AVO) and Sale Procedure Order (SPO): In August 2024, Conway J. approved:

  • The sale of two residential properties.
  • A process (SPO) for selling vacant development land (Elmvale Land) using a stalking horse agreement, which set a baseline bid for future offers.

• Debtors’ Appeal: The Debtors sought to appeal the AVO and SPO, arguing:

  • The Receiver should have pursued a higher bid from another party.
  • The sales of certain properties should be postponed to await proceeds from others.

• Key Legal Issues:

  1. Whether the Debtors could appeal without leave under the BIA.
  2. Whether leave to appeal should be granted.

• Court Decision: The Court of Appeal held that leave was required under section 193(e) of the BIA, and denied leave, citing no arguable errors or issues of general importance. The Debtors’ claims were dismissed as the Receiver had followed a reasonable process. No monetary award was specified.