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The Bondholders submitted that the Canadian Debtors’ and Monitor’s motion to determine the Bondholders’ entitlement to claim for post-filing interest was premature. It was their position that: (i) distributions to unsecured creditors could not be made in the absence of a CCAA plan; (ii) it is well-settled law (as acknowledged by Justice Newbould) that a CCAA plan can provide for post-filing interest; (iii) whether or not post-filing interest would be provided for in a plan should be the subject of negotiations between the interested parties not pre-determination by the court; and (iv) therefore, it was “entirely premature and inappropriate” for the Ontario Court to insert itself into the process at this stage of the proceedings and to dictate in advance what the parties’ CCAA plan negotiations should or should not include. Further, the Bondholders asserted that such negotiations cannot meaningfully take place until the Allocation Dispute is settled and each of the Canadian, U.S. and EMEA Debtors determine what proceeds they have for distribution to their particular creditors.
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