Background and Case Introduction: Invico Diversified Income Limited Partnership sought approval for a Reverse Vesting Order (RVO) to purchase business and property assets from the insolvent Free Rein Resources Ltd, including removing certain Gross Overriding Royalties (GORs) from the title.

Objections and Arguments:

• NewGrange Energy Inc, holding GORs, argued these royalties were interests in land that should not be removed from the title. Invico argued they were not land interests and should be vested out.

Court's Decision:

• The court granted Invico's application, approving the use of an RVO due to its suitability in the context of existing oil and gas licenses and permits.
• The court found that the GORs in question did not constitute interests in land and could therefore be vested into a residual trust as unsecured claims.

Legal Analysis:

• The court analyzed whether GORs constituted an interest in land using the "Dynex Test," which involves understanding the parties' intentions and the nature of the interest being granted.
• The court determined that both the GOR held by NewGrange and another by the shareholders did not constitute interests in land based on the language of the agreements and the structure of the transactions.

Conclusion:

• It was appropriate to issue the RVO as proposed, given the outcomes of the sales process, potential for continued operation, and the non-worsening of stakeholders' positions compared to other alternatives like bankruptcy.
• The decision did not specify costs awarded.