Applicant
Respondent
Other
Overview
Henenghaixin Corp (HCorp) sought leave to appeal a decision under the Companies’ Creditors Arrangement Act (CCAA) that approved a stalking horse bid and a Reverse Vesting Order (RVO) for Long Run Exploration Ltd. The transaction allowed Long Run to continue operating under new ownership, transferring certain liabilities to a creditor trust that was unlikely to provide recovery.
HCorp claimed a proprietary constructive trust over Long Run’s assets, alleging fraudulent misappropriation of $44 million. It sought to have its claim designated as a retained liability, preserving adjudication rights. The CCAA justice rejected this request and approved the RVO.
CCAA Justice’s Decision
The court applied Century Services Inc v Canada and Harte Gold Corp (Re), emphasizing:
HCorp was required to prove its claim on a balance of probabilities. The court found the evidence insufficient and ruled that HCorp’s claim did not warrant constructive trust.
Denial of Leave to Appeal
The Court of Appeal held:
Conclusion
The application for leave to appeal was dismissed. The court did not grant any monetary award, damages, or costs
Court
Court of Appeal of AlbertaCase Number
2401-0341ACPractice Area
Corporate & commercial lawAmount
Winner
RespondentTrial Start Date
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