21 Jan 2025
Conifer Energy Inc v Razor Energy Corp
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:
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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.
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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.