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Financial Services Law Analysis and Updates for the Canadian and Cross-Border Financial Community

Category Archives: Priorities

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Lenders React to Indalex Decision – Pension Deficits in Canada

Posted in Asset-Based Lending, Priorities

Kevin Morley and Richard Borins recently authored an article in ABL Advisor titled “Pension Deficits in Canada – Lenders React to Indalex Decision“.  The article looks at how Canadian lenders have responded to the decision of the Supreme Court of Canada in Indalex Limited (Re) (Sun Indalex Finance, LLC v. United Steelworkers, 2013 SCC 6) that was… Continue Reading

Critical Supplier Priority Charges in CCAA Restructurings

Posted in Priorities, Restructuring

Companies restructuring under the Companies’ Creditors Arrangement Act (“CCAA”) depend on a supply of critical products and services in order to continue operations during the proceedings. An interruption in the supply of such goods and services would likely be fatal to any restructuring. Prior to 2009, the CCAA was silent about how the post-filing supply… Continue Reading

Third Party Benefit Providers Get Super Priority Secured Claim for Unpaid Remittances Owed by Employer

Posted in Bankruptcy, Priorities, Wage Earner Protection Program

Synopsis In the latest decision of the British Columbia Supreme Court (the “Court”) regarding the bankruptcy of Ted LeRoy Trucking Ltd. (“TLT”), the Court found that unpaid remittances owed by TLT to third party benefit providers constituted “wages” within the meaning of the Bankruptcy and Insolvency Act (“BIA). This entitled the benefit providers to super… Continue Reading

Intercreditor Agreements – Ontario Court of Appeal Considers Circular Priorities

Posted in Intercreditor, Priorities

A recent decision of the Ontario Court of Appeal illustrates that secured creditors should address their priority position relative to all other creditors of their borrower in order to achieve a complete subordination of competing security. Failure to do so in this case resulted in circular priorities that the Court was left to resolve. In… Continue Reading

Super-Priorities: Update Regarding”Wages” Under the Wage Earner Protection Program Act

Posted in Bankruptcy, Priorities, Wage Earner Protection Program

In May of 2010, we reported on the decision of the British Columbia Court of Appeal in Ted Leroy Trucking v. Century Services Inc. In that decision, the Court of Appeal upheld a decision of the B.C. Supreme Court which determined that employee “wages” recoverable under the Wage Earner Protection Program Act (Canada) ("WEPPA") include… Continue Reading

Inadvertent Subordination Under the PPSA

Posted in PPSA, Priorities

Section 38 of the Ontario Personal Property Security Act (the "Act") contains an exception to the general priority scheme of the Act. It provides that a secured creditor may, in the relevant security agreement or otherwise, subordinate its security interest to any other security interest, and that such subordination will be effective according to its… Continue Reading

PPSA Case Alert – What’s in a Name?

Posted in PPSA, Priorities

The decision of the Ontario Court of Appeal in Fairbanx v. Royal Bank of Canada contains some useful information about how courts view inaccurate debtor names in financing statements and their approach to s. 46(4) of the Personal Property Security Act (Ontario)(“PPSA”) regarding materially misleading filings. The case also reminds secured parties to use a… Continue Reading

Super-Priorities: B.C. Court of Appeal Considers Scope of Wages under WEPPA

Posted in Bankruptcy, Priorities, Wage Earner Protection Program

In its recent decision in Ted Leroy Trucking v. Century Services Inc., the Court of Appeal for British Columbia upheld a decision of that province’s Supreme Court which determined that employee “wages” recoverable under the Wage Earner Protection Program Act (Canada) ("WEPPA") include components from an employee’s compensation package that are remitted by an employer to third… Continue Reading