Take or Pay, Disclaim or Stay: Alberta Clarifies Eligible Financial Contract Boundaries

Kelly Bourassa, KC and Angad Bedi of Blakes look at a recent case where the Alberta Court of King’s Bench held that long-term take-or-pay gas supply, ship-or-pay transportation and liquefied natural gas logistics contracts were not eligible financial contracts protected from disclaimer under the CCAA, clarifying that EFC status turns objectively on the contract’s financial purpose and the market context at the time of contracting.

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