Category: Restructuring & Insolvency

What Comes First: Deemed Trusts or Court-Ordered Super Priority Charges? ABCA Weighs In

September 3, 2019

On August 29, 2019, the Alberta Court of Appeal released its decision in Canada v. Canada North Group Inc. The majority – Justice P. Rowbotham and Justice F. Schutz – upheld the chambers judge’s ruling that the Crown’s interest under deemed statutory trust provisions of the Income Tax Act (ITA), Canada Pension Plan (CPP), and Employment Insurance Act (EIA) is…

Long May You Run: Ontario Court of Appeal Clarifies the Treatment of Mineral Royalties in Insolvency Proceedings

July 3, 2019

On June 19, 2019, the Ontario Court of Appeal (Appeal Court) released its long-anticipated decision in the second phase of the appeal in Third Eye Capital Corporation v. Ressources Dianor Inc./Dianor Resources Inc., following an earlier decision of March 15, 2018, granted in respect of the first phase of the appeal. The two decisions, taken together, provide helpful guidance on…

Improper Purpose by a Creditor? The Quebec Court of Appeal Weighs In

February 19, 2019

On February 4, 2019, the Quebec Court of Appeal (Court of Appeal) ruled in the restructuring proceedings of Bluberi Gaming Technologies Inc., now 9354‑9186 Québec Inc., et al. (Bluberi) that under the Companies’ Creditors Arrangement Act (Canada) (CCAA), creditors have a right to vote in their own self-interest. In so doing, the Court of Appeal reversed the lower court’s decision….

Priority Denied: Alberta Court of Appeal Determines Linear Property Tax Arrears Are Not Subject to a Special Lien

February 19, 2019

On February 12, 2019, the Court of Appeal of Alberta (Court) released its long-anticipated decision in Northern Sunrise County v. Virginia Hills Oil Corp. (Virginia Hills). The Court held that the taxation provisions of the Municipal Government Act (MGA) do not grant special lien priority to municipalities for tax arrears related to linear property (property that includes electric power systems,…

Supreme Court of Canada Overturns Alberta Court of Appeal in Redwater Decision

January 31, 2019

On January 31, 2019, the Supreme Court of Canada (SCC) released its decision in Orphan Well Association, et. al. v. Grant Thornton Limited, et. al. – a case commonly known as Redwater. The majority overturned the Alberta Court of Appeal’s decision and found that certain sections of the Oil and Gas Conservation Act (OCGA) and Pipeline Act (PA) do not conflict with the scheme of…

Restructuring and Insolvency: A Cross-Country Year in Review

January 23, 2019

We invite you to join members of our National Restructuring & Insolvency Group as they review key restructuring and insolvency developments and trends across Canada in 2018. This seminar will provide a broad cross-country update on major domestic and cross-border filings, judicial decisions in 2018, and topics of interest to lenders and other stakeholders. Mandatory Continuing Education Ontario This program…

2018 Developments in Canadian Insolvency Case Law: What Lenders Need to Know

January 7, 2019

In 2018, a number of insolvency cases were litigated, in various provinces across Canada, which may materially affect the realization and recovery rights of commercial lenders in restructuring and insolvency proceedings. This article summarizes the core issue of importance to lenders in each of these cases and provides an update on their appeal status. 

Concordia International Corp.’s Canada Business Corporations Act Proceedings Explained

October 18, 2018

The recent restructuring proceedings of Concordia International Corp. (Concordia) demonstrate that the arrangement provisions of the Canada Business Corporations Act (CBCA) remain as a powerful tool for balance sheet restructurings in Canada. These provisions allow a company to submit a plan of arrangement for creditor and court approval in order to achieve a balance sheet restructuring in a timely and…

Retail Insolvencies in Canada Series, #4: Lender Perspectives

October 4, 2018

This is the final instalment in a series examining large retail insolvencies in Canada from the perspective of various stakeholders. This article discusses retail insolvencies from the perspective of lenders to distressed Canadian retailers and trails the successful emergence of Toys “R” Us Canada from Companies’ Creditors Arrangement Act protection, following the acquisition of its shares by Fairfax Financial Holdings…

Drilling Down: Alberta Court Finds Production Volume Royalty Can Be an Interest in Land

July 4, 2018

On June 22, 2018, in Re Manitok Energy Inc., Justice K. Horner of the Alberta Court of Queen’s Bench (Court) confirmed that the creation, grant and sale of a production volume royalty can constitute an interest in land where the parties have an express intention to create such an interest. This decision adopts the reasoning of the Ontario Court of…