A curation of recent Canadian insolvency-focused articles.

Authority to Bar a Creditor From Voting & Litigation Funding as Interim Financing : The Supreme Court of Canada’s Ruling in Bluberi

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.

Arm’s length parties with non-arm’s length dealings?

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.

SCC Ruling Affirms Authority to Approve Litigation Funding Agreement as Interim Financing

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.

Trustees’ Liability under the new Mandatory Breach Notification Rules

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.

Deductibility of Professional Fees for Income Tax Purposes by a CCAA Debtor Company

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.

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