Ontario Court Confirms Securitization Parties Cannot Be Compelled to Contribute Additional Amounts towards CCAA Costs

Lee Nicholson, Ashley Taylor and Mark McElheran of Stikeman Elliott summarize a recent decision in the Pride Group CCAA proceedings confirming that securitization parties whose bankruptcy-remote assets were excluded from the debtor’s property cannot be compelled to contribute fresh funds toward CCAA costs, with section 11.01(b) barring cost-allocation orders that would effectively require an advance of money to the estate.

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