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.
A curation of recent Canadian insolvency-focused articles.
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.
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
Michael Nowina and Ben Sakamoto of Baker & McKenzie review a recent appeal involving the intersection of bankruptcy law and the doctrine of subrogation.
David Jackson of Taylor McCaffrey uses a recent case to remind readers that while Proposal Trustees are not typically the chosen tool for investigating or challenging pre-filing transactions, they do have similar powers to Bankruptcy Trustees
Jessica Cameron, Josef Krüger, Robyn Gurofsky and Miles Pittman of BLG review a recent case that serves as a cautionary tale for receivers regarding the duties they owe both to the Court as a Court officer, as well as to all of a debtor's interested stakeholders.