Bryan Gibbons Featured in Global Restructuring Review Article Following B.C. Supreme Court RVO Decision

Lawson Lundell partner Bryan Gibbons was recently featured in the Global Restructuring Review (GRR) following a ruling by the Supreme Court of British Columbia regarding reverse vesting orders (RVOs) under the Companies’ Creditors Arrangement Act (CCAA).

In Teal-Jones Group (Re), Justice Gordon Weatherill rejected a proposed RVO transaction that sought to sell key forestry assets while stripping away long-standing log and residual fibre supply agreements. Representing counterparty Domtar, Lawson Lundell successfully argued that the agreements created a proprietary interest in the land and could not be extinguished via an RVO.

Speaking to GRR, Bryan emphasized that the decision reinforces the principle established in Harte Gold, that RVOs remain an "extraordinary remedy" requiring a rigorous, evidence-based justification over standard approval and vesting orders.

Bryan noted that the proprietary rights created by the supply agreements, combined with the severe prejudice B.C.'s coastal forestry sector would suffer if those rights were erased, outweighed the potential benefits of the sale structure.

"Accordingly," Bryan explained, "the Court concluded that a sale without the retention of the supply agreements did not meet the test under either an AVO or RVO structure."

To read the article, visit Global Restructuring Review online (subscription required).

For advice on complex restructuring, CCAA proceedings, or cross-border insolvency matters, please contact Bryan or a member of our Insolvency & Restructuring Group.