Please see the following update from the counsel of the Shire Class Action Group. I am taking a break and will not be responding to phone calls or emails until after January 4th.
Happy Holidays!
On Monday I attended in court before Madam Justice Kent with other counsel for a variety of matters. The major point was for Justice Kent to clarify her December 7 decision, in particular a couple of paragraphs which were not clear as to how debtor in possession funds were to be paid as a result of her decision not to continue the CCAA stay of proceedings. This included a review of what she intended in her decision concerning the payment of professional fees. She said her intention was that the debtor in possession financing was to be paid out of the equity in the properties first before any secured creditors' security would be impacted. She found the professional fees of the monitor, monitor's counsel and debtor counsel (as usual in CCAA matters) were to be paid out of the DIP. Unfortunately she also decided to revisit the October 7 order of Justice LoVecchio who directed that up to $100,000 of the DIP be paid for the investors' legal costs. She found that procedurally this request had not been formally put before the court and she believed she could revisit previous decisions in CCAA proceedings where circumstances changed.
There was also an application by the DIP financier to appoint E&Y as a full blown receiver instead of the modified receivership powers that it holds currently. She adjourned this application until January 8 at 9:00 am.as it was filed on late notice.
