Pre-Packaged Sale Transaction Authorized In Alberta Receivership Proceeding

In the recent unreported decision of Alberta Treasury Branches v. Northpine Energy Ltd., the Court of Queen's Bench of Alberta  authorized a disposition of a debtor's assets by a receiver immediately upon appointment and without being forced to conduct a marketing process within the receivership proceedings. This decision is authority for the proposition that, where a pre-receivership sales process has been consistent with the principles set forth in Royal Bank of Canada v. Soundair Corp, a secured creditor may apply to authorize a receiver to enter into and close a sale transaction, distribute proceeds and be discharged on an initial appointment under section 244 of the Bankruptcy and Insolvency Act (Canada).