An appeals court quashed approval for the $51.8 billion leveraged buyout of Bell Canada on Wednesday after siding with angry bondholders in a ruling.

While the unanticipated decision may not be the final ruling on the buyout, the largest leveraged deal in history, it puts its future in legal jeopardy.

A five-judge panel of the Quebec Court of Appeal found that Canada’s largest telecommunications company “never attempted to justify the fairness and reasonableness of an arrangement that results in a significant adverse economic impact on the debenture holders while at the same time it accords a substantial premium to the shareholders.”

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