In RPG Receivables Purchase Group Inc. v. American Pacific Corporation, the Court held that payments made by an insolvent company to a single creditor cannot rebut the s. 95(2) BIA presumption of preference unless supported by a reasonable business continuation plan benefiting all creditors. The Court found no evidence that the respondent’s payments totaling about US$400,000 to a single creditor and critical supplier just a month or so before the bankruptcy was reasonably calculated to avoid insolvency or enhance creditor recovery. The payments were therefore set aside as preferences.
In Arapakota v. Imex Systems Inc., the Court upheld the motion judge’s dismissal for delay of an application that had been dormant from 2018 to 2023.
In Cameron Stephens Mortgage Capital Ltd. v. Spotlight on Lawrence Inc., leave to appeal from an approval and vesting order made in a receivership application was denied because the appellants’ main argument was that the motion judge did not grant an adjournment and there were no other serious grounds of appeal.