Ontario Court holds that a recent former auditor cannot act as CCAA Monitor in the absence of extenuating circumstances

David Bish and Mike Noel of Torys share that the Ontario Court recently took a restrictive view of the provision in the CCAA prohibiting a firm that has acted as the company’s auditor within two years before the CCAA filing from also acting as its CCAA monitor, refusing to permit a restructuring firm to act as monitor because its affiliate had acted as the auditor of one of the debtors within that two-year period.

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