A summary of recent Canadian insolvency-focused court decisions.
Do special considerations apply to the discharge of a bankrupt lawyer? Adam Rodgers sought to be discharged from bankruptcy following completion of his statutory duties. Rodgers was one of two partners of a now-defunct law firm. The law firm was placed in receivership in January…
What is an order that is "made under" the CCAA for the purposes of leave to appeal? On October 6, 2016, the Urbancorp companies were placed under the protection of the Companies’ Creditors Arrangement Act and The Fuller Landau Group Inc. was appointed as their Monitor. The…
What is the test for the appointment of an investigative receiver? PricewaterhouseCoopers Inc. (the "Applicant”), the Court-appointed Receiver and Manager of Bridging Finance Inc. (“Bridging”), sought an order appointing Richter Inc. (“Richter”) as receiver and manager of all of the current and future assets, undertakings…
Do government-ordered closures free a commercial tenant from its obligation to pay rent? 9056-6316 Québec Inc. (the “Landlord”) was a corporation specialized in real estate management. It owned two large commercial buildings on Saint-Antoine West Street in downtown Montréal, and the adjacent parking lot. Safeway…
What is the test for rectifying a BIA proposal? Williams Moving & Storage (B.C.) Ltd. applied for the rectification of a bankruptcy proposal sanctioned and approved in accordance with the BIA by order of the Court issued May 19, 2015 (the “May Order”). In 2019,…
How will the Court decide competing motions for an AVO vs. a request to redeem a mortgage? 2735440 Ontario Inc. (“273 Ontario”) was both a second mortgagee that wanted to be paid and a joint venture participant in the Rosehill Project that was to be…
Can a creditor apply to have the court declare a proposal to have been refused after the meeting of creditors? On July 16, 2018, Gaum filed a Proposal pursuant to Part III, Division I of the Bankruptcy and Insolvency Act. The Trustee in bankruptcy recommended the…
How is the value of a disclaimed contract determined? In February 2021, Laurentian University applied for and obtained protection from its creditors under the CCAA. On April 1, 2021, Laurentian delivered a Notice of Disclaimer of the Federation Agreement to the Appellant, Thorneloe, pursuant to…
What is the appropriate way to address extant bankruptcy proceedings after debts have been dealt with under a subsequent CCAA? EncoreFX Inc. (“EncoreFX”) was in the business of providing foreign exchange or “FX” risk management services and cross-border payment solutions. On March 30, 2020, it…
What is the nature of ITCs on damage payments for disclaimed agreements under the CCAA, and can they be set off against pre-filing sales tax-related claims? Summary: Quebec Court of Appeal confirms input tax credits on damage payments for agreements disclaimed under section 32 CCAA are…
