After a lengthy, complicated, and hotly-contested proceeding under the Companies’ Creditors Arrangement Act (“CCAA”) Solterra Acquisitions Corp. (“Solterra”) has successfully closed a court-approved purchase of the Terrace House development, a unique development in downtown Vancouver featuring an all-timber design.
The road to the completion of Solterra’s acquisition was paved with complicated legal disputes arising in the CCAA proceedings. Solterra’s original offer to purchase Terrace House was approved by the Supreme Court in the Spring of 2021: Port Capital Development (EV) Inc. (Re), 2021 BCSC 1272. However, one of the secured creditors sought leave to appeal and empanelled a five judge division of the Court of Appeal to hear the appeal: Port Capital Development (EV) Inc. v. 1296371 B.C. Ltd., 2021 BCCA 319.
In September 2021, the Court of Appeal overturned the original sale ordered by the Supreme Court and approved the secured creditor’s refinancing plan: Port Capital Development (EV) Inc. v. 1296371 B.C. Ltd., 2021 BCCA 382.
Solterra sought leave to appeal to the Supreme Court of Canada, but was denied a stay of the Court’s decision, which made a further appeal moot: Port Capital Development (EV) Inc. v. 1296371 B.C. Ltd., 2021 BCCA 418.
However, almost exactly a year later, another opportunity presented itself. The secured creditor’s refinancing plan had failed and another sales process was opened up. On its second attempt, Solterra’s purchase agreement was approved and withstood another attempt at appellate intervention after the same secured creditor failed to file their materials in time, and was denied an extension of time: Port Capital Development (EV) Inc. (Re), 2022 BCSC 1655. Leave to appeal from that decision was also denied by the Court of Appeal: 1296371 B.C. Ltd. v. Domain Mortgage Corp., 2022 BCCA 331.
By the end of September 2022, Solterra had completed its acquisition of the project, leaving the sale proceeds for distribution to debtors’ creditors.
Fasken represented Solterra in the CCAA proceedings with a team that included Kibben Jackson, Tom Posyniak, and Rebecca Nguinambaye. Carmine Boskovich was counsel for Solterra in relation to the real estate closing.
- British Columbia