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the plan will likely be withdrawn." At a meeting in late April, approxi- mately 96 per cent of noteholders en- dorsed the restructuring plan, sending the issue to a final sanction hearing before Campbell. The release issue was front and centre at the two-day sanc- tion hearing in May, as the investors committee and banks argued in fa- vour of approving the plan, while the corporate parties noted that granting immunity to fraud claims is outside of the court's jurisdiction, according to Reuters re- ports. Those eagerly awaiting At the time, Campbell directed par- ties to return no later than May 30 to make submissions for whether there could be a process for dealing with potential fraud claims. "If the parties can agree on a dispute resolution pro- cess within the ambit of the CCAA to deal with serious claims of fraud, the plan can go forward immediately," he noted. plan, saying that it represents "a rea- sonable balance between benefit to all noteholders and enhanced recovery for those who can make out specific claims in fraud." At the end of the day, in so many it's a kind of uniquely creative Canadian solution." the ruling following the two-day May hearing were met with a setback, as Campbell released an endorsement, noting that he was not satisfied that "the release proposed as part of the plan, which is broad enough to encompass release from fraud, is in the circumstances of this case at this time properly authorized by the CCAA, or is necessarily fair and reasonable." nounced in a report on its web site that a proposed amendment to the plan, which would allow for claims in situ- ations where there has been "express fraudulent misrepresentation" relating to the affected ABCP was put forward. On June 5, Campbell approved the "A way to look at this one is, — ALFRED APPS, FASKEN MARTINEAU DUMOULIN LLP In late May, Ernst & Young an- ways, the restructuring plan — which Apps notes is a creditors' plan rather than a debtors' plan — "tests the limits of judicial discretion under the Com- panies Creditors Arrange- ment Act. "For example, how far can third-party releases go? How far can you go in consolidating voting classes of creditors? How much can you impose judicial control on third parties to the pro- ceedings? These are all issues that have been really tested. Of course, the most important test of all being how creative can you get in position- ing yourself to claim the benefits of the act. "A way to look at this one is, it's a kind of uniquely creative Canadian solution," he says. PROFESSIONAL DIRECTORY Supreme Court of Canada Counsel and Agency Services Henry S. Brown, Q.C. Martin W. Mason Brian A. Crane, Q.C. Graham Ragan Guy Régimbald Eduard J. Van Bemmel, Legal Assistant DD CL GRLBBA-12 OP b&w 6/4/08 9:15 AM Page 1 2600 - 160 Elgin Street, Ottawa, ON K1P 1C3 Tel: (613) 233-1781 Montréal Ottawa Toronto|| | Hamilton | Waterloo Region | | | gowlings.com We are Canada's Largest Supplier of Indexes OFFICE & FURNITURE PRODUCTS C Our indexes are available in complete sets or packages of individual letters and numbers to help you minimize waste. Sets from 1-2000, letters A-Z Buff or White with up to 30% post consumer waste. dyedurhambasics.ca • 1-888-393-3874 • Fax: 1-800-263-2772 Choose Dye& Durham your ONE source supplier www. C ANADIAN Law ye rmag.com JULY 2008 61 Calgary Vancouver Moscow W e ' r e a y C a n a p d i m a n o a n