Québec Superior Court offers guidance on pre-packaged transactions in insolvency proceedings

Ilia Kravtsov, Jack Little and Catherine Saya of Osler outline how the Québec Superior Court’s approval of a BIA prepack using a reverse vesting structure in the Sheertex proceedings establishes a practical framework and criteria for Canadian courts to assess prepacks, emphasizing good faith, enhanced disclosure, stakeholder support and demonstrated urgency while affirming RVOs as a legitimate value-preserving restructuring tool when properly supported.

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