An Exception to the Exceptional? D&O Releases in CCAA Proceedings

Jeffrey Levine of McMillan explains that while Canadian courts can approve D&O releases in CCAA proceedings, recent decisions in Lion Electric and Imperial Tobacco reaffirm that such releases are not automatic and will be closely scrutinized under the nexus test, with courts increasingly willing to refuse broad releases that are not demonstrably necessary, fair, and supported by meaningful contributions to the restructuring.

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