A curation of recent Canadian insolvency-focused articles.

What Role has the Covid-19 Pandemic Played in Insolvency Filings?

The Insolvency Institute of Canada presents the results of its study into how many Canadian insolvencies have been due to the Covid-19 pandemic, with the biggest takeaway being that Covid-19 has not yet had the massive impact that was expected and was the primary factor for the insolvency in only 15% of the filings.

Using the CCAA as an Encore to Bankruptcy

Vanessa Mensink, Dana Nowak and William Skelly of MLT Aikins tell the tale of the unusual proceedings of EncoreFX, where a bankruptcy (and not a proposal) under the BIA was converted into a CCAA proceeding.

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.