A summary of recent Canadian insolvency-focused court decisions.

Krashnik Investments Limited v. 186 Old Kennedy Development Inc., 2022 ONSC 6249

Can a secured creditor be barred from making a claim in bankruptcy by a consent order made in a related receivership? The Debtor, 186 Kennedy, owned lands in Markham, Ontario (the “Property”). The court-appointed Receiver marketed and sold the Property for $47,800,000 pursuant to a…

Peace River Hydro Partners v. Petrowest Corp., 2022 SCC 41

Are arbitration agreements inoperative in insolvency proceedings? The appellant, Peace River, is a partnership formed to build a hydroelectric dam in northeastern British Columbia. The respondent, Petrowest, is an Alberta‑based construction company. In December 2015, Peace River agreed to subcontract certain work to Petrowest and its…

Pandion Mine Finance Fund LP v. Otso Gold Corp., 2022 BCSC 1923

What is a reasonable rate to charge for a junior insolvency lawyer? Otso Gold Corp. owned mineral rights in British Columbia and, through subsidiaries, a gold mine in Finland.  It was the subject of receivership proceedings in British Columbia, which have now come to an…

Edward Collins Contracting Limited (Re), 2022 NLSC 149

What factors will a court consider in competing applications for a CCAA initial order or a receivership order? On July 8, 2022, the Royal Bank of Canada applied to appoint Ernst and Young Inc. as a court-appointed receiver over all or substantially all of the…

Rideout (Re), 2022 ABKB 653

What factors will a court consider when the OSB contests a trustee's fees? The Office of the Superintendent of Bankruptcy contested the Trustee’s Final Statement of Receipts and Disbursements of $30,155.11, as against a recovery of the same amount. The OSB suggested a reduction of…

Port Capital Development (EV) Inc. (Re), 2022 BCSC 1655

Will an extension to file an appeal be granted when the late filing arose from a small procedural issue? On July 22, 2022, the Court approved a sale of the petitioners’ unfinished development property to Solterra (the “Sale Order”). One of the secured creditors (“129”),…

2806401 Ontario Inc. d/b/a Allied Track Services

In the Matter of the Proposal to Creditors of Conforti Holdings Limited, 2022 ONSC 5420 Can a proposal be approved if the company failed to disclose a creditor’s claim and give notice of the NOI to the creditor?  Conforti operated hair salons in malls and…

Carillion Canada Inc., 2022 ONSC 4617

Can an exercise of set-off rights be contrary to the CCAA? The Applicant, Carillion, applied for protection under the Companies’ Creditors Arrangement Act following the liquidation proceedings of its parent company in the United Kingdom. The Initial order contained a number of provisions which affected Carillion’s operations…