Romain Viel of McInnes Cooper explains that the Supreme Court's hesitation to comment on the scope of a Crown's deemed trust before a tax debtor's bankruptcy in the Callidus case is likely because there is ongoing litigation about this issue (Canada v. Toronto-Dominion Bank)
A curation of recent Canadian insolvency-focused articles.
Kelsey Meyer of Bennett Jones summarizes several recent decisions relating to municipal property taxes that are currently under appeal in Alberta and notes that the outcome of these appeals will have significant implications for willing and unwilling participants.
Steve Weisz, Caitlin Fell and Alex Don of Brauti Thorning Zibarras explain what is at issue in the highly anticipated Third Eye Capital appeal, noting that the decision will significantly impact all parties to restructuring proceedings, including purchasers of distressed assets going forward.
Ken Lenz, Kevin Zych and Isabel Langlois of Bennett Jones review a recently sanctioned CCAA plan of compromise and arrangement that demonstrates how CCAA proceedings can be used to settle complex litigation that involves multiple parties and jurisdictions.
Michael McTaggart, Josh Beaver and Matt Snow of PwC look back at how the corporate bond market grew following the 2008 financial recession and point out that nearly half of investment grade bonds are now perilously close to being downgraded to junk bond status, which would trigger a host of difficulties for these issuers.
Mario Forte of GSNH looks at how landlords have come to act as the "official opposition" in complex retail insolvencies and reviews several recent cases that demonstrate the creative and facilitative roles that landlords can take in CCAA restructurings.
Michael Myers of Papazian Heisey Myers examines the meaning of the word ‘may’ as it is used in section 96 of the BIA, and the extent of the discretion that is afforded to a judge as a consequence.
Michael Myers of Papazian Heisey Myers dives back into his analysis of transfers at undervalue, explaining the difficulties a trustee or creditor can be expected to face when attempting to prove fraudulent intent on the part of the (now bankrupt) debtor.
Michael Myers of Papazian Heisey Myers wonders why, in at least one recent decision, the Ontario Superior Court refused to even look at the Transfer at Undervalue provisions in the BIA and permitted a spouse to retain her share of a matrimonial home that was given to her for no consideration by a debtor less than one year before the debtor's petition into bankruptcy, stressing that Section 96 of the BIA does not differentiate between 'family assets' and 'non-family assets.'
Michael Myers of Papazian Heisey Myers argues that the BIA's definition of Transfer at Undervalue is awkwardly drafted and explains how it can become challenging for a trustee or creditor to determine if a transaction can be impugned.