The British Columbia Supreme Court has refused to approve a proposed reverse vesting transaction (RVO) for Teal-Jones Group that would have wiped out long-standing fibre supply agreements tied to TFL 46, finding that TimberWest and Domtar held proprietary interests that should not be extinguished. The Monitor argued that the sale of the Surrey Mill and TFL 46 to Gillfor Manufacturing was the best available transaction and that removing the agreements was necessary to preserve the business, but the Court found no sufficient evidence that the agreements were uneconomic or would prevent Gillfor from operating the assets. With the agreements priced at fair market value and their termination expected to cause significant prejudice to TimberWest and Domtar, the Court declined to approve the transaction unless they remained in place. …The prejudice to Domtar if the supply agreements were extinguished would be significant.