In the recent matter of Respec Oilfield Services Ltd. (“Respec”), the Court of Queen’s Bench of Alberta heard an application by the court-appointed monitor (the “Monitor”) for the allocation of the Court-ordered charges, securing the payment of the administration costs and repayment of the DIP financing (the “Charges”) granted under the Companies’ Creditors Arrangement Act (the “CCAA”). In this case, the CCAA failed and Respec ultimately became bankrupt. The primary dispute concerned the appropriate allocation of the Charges against property in the possession of Respec, as among all of the secured creditors of Respec, including the property in the possession of Respec pursuant to true leases. Jim Pattison Leasing (“JPL”) was the only true lessor of Respec and was of the view that, as a true lessor in a CCAA process, it should not bear any allocation of the Charges. 

Read more by clicking the download button.