Performance bonds remain effective despite stay ordered in CCAA proceedings

Richard Yehia, Denise Bambrough, James MacLellan and Andrew Punzo of BLG clarify that the Earth Boring Co. Limited CCAA case shows performance bonds remain valid and enforceable even when a temporary stay is imposed, with the court’s measured approach allowing the contractor to complete bonded projects under surety-backed financing while safeguarding obligees’ rights, demonstrating that CCAA protection and bondholder security can operate in harmony.

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