Coverage of the latest Canadian insolvency filings, court cases, news and more
Terra Nova Construction
Terra Nova Construction, a Calgary, Alberta-based construction company, was placed in receivership on May 17 on application by RBC, owed approximately $5.5MM. In addition to its failure to comply with its financial reporting requirements and its failure to advise the bank of any unfavourable change in its financial position, RBC suspected that the company had opened up another bank account for its day-to-day banking with a different financial institution, in breach of its loan agreement. Grant Thornton was appointed receiver. Counsel is McMillan for the applicant and Parlee McLaws for the company.
Cross Country Installation & Service
Cross Country Installation & Service, a Toronto, Ontario-based equipment installation and project management company, which provides its installation services to communities all across Canada, filed for bankruptcy on May 8. PwC is the bankruptcy trustee.
Inara
Inara, an Edmonton, Alberta-based company which owns and operates a Quality Inn Hotel in Whitecourt, Alberta, was placed in receivership on May 3 on application by ATB Financial, owed approximately $1.1MM. The 81 room hotel was opened in 1956. In addition to the $1.1MM owed to ATB, Inara also owes the Town of Whitecourt approximately $452.6M in unpaid property taxes, penalties and interest. Hardy & Kelly was appointed receiver. Dentons is counsel for the applicant.
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Burns (Re), 2019 NSSC 155
When does the emphasis of the bankruptcy system shift from debtor rehabilitation to creditor protection and system integrity?
Michael Rotsztain on the evolution of restructuring and insolvency work in Canada
“Study the past if you would define the future.” Confucius’ quote is a favourite of Michael Rotsztain, who has been practising insolvency and restructuring law for over 40 years. Beginning his career at the legendary insolvency firm of Harries Houser, where he had the good fortune of being mentored by a bankruptcy law dream team, Michael spent the major part of his career at a leading Bay Street firm and since 2014 has been the chair of GSNH’s five-lawyer Restructuring and Insolvency Group. Michael recounts how insolvencies and restructurings have evolved over his career and shares what he thinks are the next steps in the evolution.
BIA and CCAA amendments: 2019 Federal Budget proposes to legislate on good faith requirements, directors’ duties and corporate disclosure obligations
Ari Sorek of Dentons summarizes the amendments that are in the works for the BIA and CCAA which will statutorily entrench the duty of good faith, widen the scope of directors’ potential liability and augment financial disclosure and transparency