FAQ
When will the appeal of the Honourable Chief Justice
Morawetz’s decision, released in the Unitholder Priority Motion on April 12,
2023, be heard? The appeal was heard by the Ontario Court of Appeal on October 18, 2023. The Ontario Court of Appeal took its decision under reserve. As soon as a decision has been released by the Ontario Court of Appeal, we will update Redemption Claimants accordingly to advise them of the decision and outcome of the appeal.
When will the motion be heard? The motion hearing will take place on Wednesday, November 16th, 2022 (beginning at 9 A.M. EST) and Thursday, November 17th, 2022 via Zoom, with arguments on behalf of Potential Redemption Claimants to be heard on Wednesday, November 16th, 2022. The materials filed by the Receiver, Representative Counsel, Representative Counsel for the Misrepresentation Claimants, Aird & Berlis LLP on behalf of the Redemption Claimants, and Quebec Representative Counsel, can be accessed at the following link: Motion Materials (pwc.com).
When will the outcome of the motion be known? It is currently anticipated that a decision will be released by the Court, which will determine the outcome of the motion, during the month of March 2023.
When is a distribution expected? Distributions are not likely to occur until sometime next year.
Is this motion holding up distribution? The motion is not holding up distribution because the Receiver is dealing with other unrelated issues which prevent determination of the amounts available for distribution at this time.
What is the expected distribution? The distribution amount will depend on the outcome of motions and the Receiver’s collections. However, we can comment that the Receiver has speculated it to be at a range of 34-42%.
What is the argument for “priority”? Our argument in respect of priority is that eligible redemption claimants hold a claim for payment of the redemption amount against Bridging which can be characterized as being debt of Bridging, rather than an equity interest. If the Court accepted that it could mean that eligible redemption claimants fall into a category ahead of equity-holders, and would have a better chance at receiving funds, as they would rank ahead of remaining equity investors.
Do they have to do anything for us to represent them at the motion? No. If you are an eligible redemption claimant, you do not need to do anything further in order for us to act as Representative Counsel for your eligible redemption claims. However, if you would like to receive pertinent information and updates from us with respect to the proceeding, please register your email contact in our Client Portal by filling out the Redemption Claimant Form.
Will we oppose distributions to others like SMA2? No. We were appointed by the Court for a strictly limited mandate in an effort to limit costs and focus our attention on the issue of the priority dispute. The Court has expressly declined to give us standing to comment on distributions.
How do I communicate any questions, comments, or supporting documentation to Representative Counsel for the Redemption Claimants? To submit supporting documentation to us, please register to our Client Portal by filling out the Redemption Claimant Form. Once your information is verified by us, we will set up a personal account for you to upload your supporting documentation. Should you have any questions or concerns, please contact us directly at bridgingrepresentativecounsel@airdberlis.com.