Conifer Energy Inc v Razor Energy Corp
Conifer Energy Inc.
Law Firm / Organization
Bennett Jones LLP
Razor Energy Corp.
Law Firm / Organization
Borden Ladner Gervais LLP (BLG)
Lawyer(s)

Kevin Barr

Background:

  • Conifer Energy Inc. operates the Judy Creek Gas Conservation Plant and co-owns it with Razor Energy Corp.
  • In December 2023, Conifer locked Razor out of the plant due to Razor’s financial default under their ownership and operating agreement.
  • Due to system constraints, Conifer continued processing about one-third of Razor’s gas production.

Legal Proceedings:

  1. Bankruptcy Stay Order:

    • In January 2024, Razor filed a Notice of Intention to Make a Proposal under the Bankruptcy and Insolvency Act (BIA), triggering an automatic stay under section 69(1)(a).
    • On February 21, 2024, a chambers judge ruled that Conifer’s continued lockout violated the stay.
    • Conifer appealed, arguing the lockout was a completed step, not a “continuing remedy,” and that forcing reconnection without payment violated section 65.1(4)(b) of the BIA.
  2. Subsequent Events:

    • Razor’s proceedings later converted to the Companies’ Creditors Arrangement Act (CCAA), leading to a sale closing on December 11, 2024.
    • Razor became wholly owned by a third party.

Court of Appeal Decision:

  • Mootness: The court ruled no live controversy remained since Razor’s ownership changed and the lower court’s decision was never enforced.
  • Discretion to Hear Appeal: Declined due to the lack of full adversarial submissions.
  • Outcome: Appeal dismissed as moot.
  •  No monetary award specified.
Court of Appeal of Alberta
2401-0040AC
Bankruptcy & insolvency
Respondent