March 14, 2017
On March 14, 2017, the Court of Appeal for Ontario released its decision denying two LTD Beneficiaries leave to appeal the January 24th order and January 30th endorsement of Justice Newbould approving the Canadian Plan of Compromise and Arrangement (the “Plan”). In his decision, Judge Newbould declined to amend the Plan to set aside CA $44 million for the LTD Beneficiaries and refused to reconsider the 2010 Employee Settlement Agreement and court approval of that Agreement. He found there was no violation of the Charter rights of the dissenting LTD Beneficiaries.
The Court of Appeal unanimously held that the application was not meritorious, and the appellants had not met the test for leave to appeal. To view a copy of the decision please click here.
The two dissenting LTD Beneficiaries have 60 days to seek leave to appeal to the Supreme Court of Canada. This appeal process has and will continue to delay the implementation of the Plan, as well as the first distribution to creditors from the estate which was originally expected to be made in April 2017. As soon as there is updated information as to when the Monitor expects to be able to make that first payment we will post it here. Please keep checking back for further developments.