Mantle Materials Group, Ltd. (“Mantle”) brought an Application to convert their Action under the Bankruptcy and Insolvency Act, RSC 1985, c B-3 (the “BIA”) to a proceeding under the Companies’ Creditors Arrangement Act, RSC 1985, c C-36 (the “CCAA”) because the statutory time periods provided for by the BIA were not flexible enough to address Mantle’s reclamation obligations pursuant to environment protection orders (“EPOs”). The conversion was not opposed. However, Travelers Capital Corp. (“Travelers”) applied to compel responses to Undertakings and questions.

After granting Mantle’s Application to convert their Action under the BIA to a proceeding under the CCAA, Nixon A.C.J. considered Travelers’ Application to compel answers to certain Undertakings and questions. The Court noted that Rule 5.2 and Rule 5.25 address this issue, and the question to consider is whether the Undertaking or question is relevant and material. The specific Undertakings and questions at issue were set out in Schedule A of Travelers Application to compel answers and were not reproduced in the Decision. However, the Court held that the questions that were relevant and material addressed Mantle’s liabilities and indemnities and addressed Mantle’s ability to indemnify certain individuals (including one of Mantle’s directors) from personal liabilities under the EPOs. Mantle was also ordered to answer one Undertaking. The Court held that the remainder of the questions and Undertakings, which involved questions regarding companies, who were not parties to the Application, were not relevant. Accordingly, Mantle’s Application was granted in part.