Background:
GC Capital Inc. and Kismet Capital Ltd. (the petitioners) sought court approval for the sale of two commercial properties in Surrey, British Columbia, after the owners, including Westfield Business Centre Ltd., defaulted on mortgage obligations. The properties included an unfinished commercial building and a vacant parcel. The petitioners, as the first mortgagees, were owed approximately $42 million.

Legal Issues:

1. Approval of Sale – The petitioners argued the sale process was conducted fairly, and the $56.5 million subject-free offer was provident. The third mortgagee opposed, citing a higher $77 million offer and BC Assessment values.
2. Extension of Redemption Period – The owners sought an extension until March 17, 2025, to pursue a strata development plan. The court assessed whether repayment within that period was reasonably probable.

Court’s Decision:
The court denied the owners’ request for an extension, citing insufficient evidence of financing and feasibility. The court approved the $56.5 million sale, finding it was conducted properly, with an experienced marketer, and the buyer was capable of completing the transaction. The $77 million offer was deemed non-compliant.

Costs and Award:
The decision favored GC Capital Inc. and Kismet Capital Ltd., but the judgment did not specify an exact costs award. The petitioners also paid $2.3 million in delinquent property taxes and insurance to protect the property.