BIA Preferences: Rebutting the Presumption of Intention to Prefer

Professor Jassmine Girgis of the University of Calgary reports that the Ontario Court of Appeal recently clarified BIA preference law by holding that while creditor pressure cannot justify a preferential payment, it may be considered as context, and reaffirmed that the “stay in business” defence requires an objectively reasonable belief that the payment would genuinely allow the debtor to continue operating.

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