Initiating, influencing and supporting insolvency proceedings: lessons from recent Québec cases

Éric Savard, Justin Dépatie, Charles Lapointe and Rémi Leprévost of Langlois look at two recent Québec insolvency proceedings involving Groupe Finstar and Asbestos Corporation Limited, considering the risks faced by secured creditors who initiate receiverships without holding first-ranking security over underlying assets, the circumstances in which solvent third parties such as insurers may obtain protection from litigation in exchange for funding a restructuring, and the growing judicial scrutiny of third-party releases, while addressing the competing interests of stakeholders and the cross-border challenges of securing recognition of Canadian insolvency orders.

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