Romain Viel, Hilary Gilroy and Colin Boyd of McInnes Cooper discuss the key takeaways from the Supreme Court of Canada's decision in Chandos Construction Ltd. v. Deloitte Restructuring Inc. and provide guidance on the precise scope of the anti-deprivation rule, including the types of clauses that would not violate the rule.
A curation of recent Canadian insolvency-focused articles.
Sylvain Rigaud, Arad Mojtahedi and Saam Pousht-Mashhad of Norton Rose Fulbright analyze the recently released written reasons in the Bluberi case, noting that the unanimous decision of the Supreme Court, penned by Chief Justice Wagner and Justice Moldaver, reverses the decision of the Québec Court of Appeal, reinstates the supervising judge’s order, and enshrines the recognition of an insolvency court’s wide discretion to, inter alia, approve a litigating funding agreement as interim financing, and to prevent a creditor from voting on a plan where it is found that said creditor is acting for an improper purpose.
James Clark of Stern Landesman Clark reminds trustees that arm's length parties can have non-arms length dealings and reviews the factors to be considered when attacking commercially unreasonable transactions between these parties.
Puya Fesharaki and Stephanie Sonawane of TGF use a recent decision to remind insolvency practitioners that they should always have sufficient evidence to justify why a court-appointed receivership is necessary instead of a private receivership.
Sylvain Rigaud, Arad Mojtahedi and Saam Pousht-Mashhad of Norton Rose Fulbright share the news that the Supreme Court of Canada has unanimously allowed the appeal in the Bluberi v. Callidus case, which cements the use of litigation funding in the insolvency context and confirms that the CCAA judge has the discretion to determine whether a litigation funding agreement should be put to a creditors’ vote.
Richard Williams of James Williams & Associates alerts readers to new regulations that bring into question whether existing protections under the BIA and model orders are sufficient to protect trustees from liability associated with the inadvertent release of personal information.
Ari Sorek of Dentons provides welcome news for DIP lenders and restructuring professionals, summarizing a recent ruling that appears to be the first one in Canada wherein a court was tasked with adjudicating competing claims between post-filing creditors and the beneficiary of a CCAA charge
William Skelly and Thomas Clifford of MLT Aikins explain the steps that should be taken by a single creditor applicant to obtain a bankruptcy order, as recently affirmed by the British Columbia Court of Appeal
Michael Basso of FTI and Derek Chiasson, Adrienne Oliver and Sylvain Rigaud of Norton Rose Fulbright note that insolvency practitioners are often asked for advice or assistance in preparing income tax returns for debtor companies and share recommendations for practitioners to follow at the onset of a filing to make the return preparation more efficient.
Mary Plahouras of MNP urges high-tax debtors to consider a proposal under the BIA instead of a bankruptcy assignment to avoid the necessity of a court hearing and the consequences that may flow therefrom.