Judges supervising proceedings by a debtor company under the CCAA have broad powers and discretion to allow insolvent companies protection under the CCAA to deal with their assets. This broad discretion can allow for business combinations and asset sales to occur that might otherwise not be possible.
yep. like BioAmber?
The Acid Bath of the Vesting Order
When assets are sold through CCAA proceedings, whether as part of the financing of a restructuring or through a creditor and court-approved overall plan of arrangement, a vesting order is issued by the court. The effect of the vesting order is that the creditors’ claims to the assets included in the sale are converted into claims to the proceeds of the sale, with the creditors ranking in their pre-vesting order priorities in respect of the distribution of such proceeds. The assets are transferred free and clear of registered encumbrances, security interests and claims against the assets, unless explicitly assumed by the buyer.
A court order under the CCAA can also remove the need to obtain certain consents and other requirements for closing a transaction. This would include shareholder consent and consents from parties to contracts concerning the assets. For example, the CCAA expressly authorizes the court to assign contracts to an assignee, notwithstanding restrictions on assignment in the contract, if certain pre-conditions are met. In addition, certain regulatory requirements under securities and other legislation can be avoided or ameliorated through the vesting order. Another advantage flowing from court supervision of the process is that the court will expressly approve the transaction, thus reducing the risk of future challenges to the validity of the transaction.
You just got Chemtrailed....by the Capt.
that's funny... because the word Liquidation can apply to a subsidy dissolving back to the parent company as well.
3 Liquidation vs. Dissolution p.323 Liquidation as a tax concept – termination of corporate activities, satisfaction of liabilities, and distribution of the corporation’s assets.
Liquidation of a subsidiary into a parent corporation – assets remain held in corporate form (i.e., held by the parent corporation). Result to controlling corporate shareholder: Under §332 – no gain or loss on the receipt by the corporation of property in the complete liquidation of an 80% or more subsidiary.
ok, but the share purchase will take care of the outstanding debt the company still has if that is the case. I can see him moving said liens to another form of documention just as long as the outcome is everyone getting paid and moving on. No Way everyone agreed to get screwed.... not going to happen...and did not happen.
come on now... do you really believe that folks that were owed 55 million dollars just agreed to have it all expunged away and have the property transfer to a new owner free and clear.... and they gave their blessing to the court too???? your crazy...
keep selling the narrative, your job is almost over.