Justice Jana Steele issued reasons on Oct. 14 approving the secured lenders’ version of Baffinland’s sale and investment solicitation process under the Companies’ Creditors Arrangement Act. The process can seek bids for a broad range of options, including a sale of shares, assets or the business, or a new investment or recapitalization.

The ruling gives William Aziz, Baffinland’s court-appointed chief restructuring officer, final authority over key process decisions, including whether to waive bid requirements, select a successful bid and finalize a proposed transaction. He must work with the court-appointed monitor and Morgan Stanley, the transaction adviser. The ruling does not sell the mine, approve a buyer or remove Baffinland’s operating committee from its role running the mine. Source↗

Mary River is Nunavut’s largest private-sector employer, with about 1,200 workers, according to the court record. The judge found that a transaction process is needed and said liquidation was the alternative if no deal is reached. That makes the outcome important for workers, contractors, suppliers and North Baffin communities.

The approved bid rules also require bidders to leave the Qikiqtani Inuit Association’s Inuit Impact and Benefit Agreement and commercial lease for Inuit-owned land unaffected. That requirement cannot be waived without QIA’s consent. The agreements cover areas including Inuit employment, training, contracting, financial participation and other mine-related commitments. Source↗

Morgan Stanley had already contacted potential interested parties, arranged some site visits and prepared sale materials before the court ruling. The process will use two stages: non-binding expressions of interest followed by binding bids from selected parties.

The public record does not give a date for initial or final bids. Those milestones are to be set in a process letter sent to participating parties. A chosen deal would still require a further court approval application, and may also require regulatory, competition, foreign-investment or national-security approvals. Source↗

The court rejected Baffinland’s proposal to leave final sale-process decisions with its shareholder-appointed operating committee. Justice Steele found that the chief restructuring officer is a neutral court-appointed decision-maker and that this approach is more transparent and fair to stakeholders.

The ruling does not decide who will own or operate the mine, whether jobs will be retained, whether expansion plans will proceed, or how creditors will be paid. It approves a process to seek a transaction. The court record says the creditors’ protection stay had previously been extended to Dec. 11, 2026. Source↗