Why Courts take bad faith seriously: Insights from the VK Group decision

William Skelly and Jess Reid of MLT Aikins analyze the British Columbia Supreme Court’s decision in V K Delivery & Moving Services Ltd. (Re), where the Court terminated CCAA protection and appointed a receiver after finding the debtor group had acted in bad faith by diverting funds, failing to provide undertakings, and making inadequate restructuring progress, with the Court of Appeal refusing leave to appeal and affirming that courts will not tolerate misuse of the CCAA process, particularly where creditor trust, transparency, and value preservation are undermined.

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