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
Category Archives: Restructuring
Subscribe to Restructuring RSS FeedCanadian Court Permits Roll-up of Pre-petition Borrowing in Cross-border Canada-U.S. Proceeding
Posted in RestructuringThis entry was written by Steven Golick and Patrick Riesterer. Interim Financing Under the CCAA and “Roll-ups” Section 11.2 of the Companies’ Creditors Arrangement Act (“CCAA”) gives the Canadian court explicit authority to grant a priority charge for amounts advanced by a lender to a CCAA debtor after the CCAA filing (a “DIP Loan”); however,… Continue Reading
Minimizing Risk for Creditors’ Nominee Directors
Posted in RestructuringA nominee director of a corporation appointed by one of its creditors may encounter risk of liability where that creditor is engaged with the corporation in efforts to restructure its debt. Steps can be taken to minimize the risk of such liability. Nominee Directors in Canada Canadian law relating to corporate directors’ duties differs from… Continue Reading
Ontario Court of Appeal Grants Retirees Priority over Secured Creditors
Posted in RestructuringRupert Chartrand, Marc Wasserman and Andrea Lockhart have published an Osler Update: Ontario Court of Appeal Grants Retirees Priority over Secured Creditors. The Update describes the Court’s decision in Re Indalex Limited from restructuring proceedings under the Companies Creditors’ Arrangement Act (Canada). This case is of particular interest to lenders due to the outcome of the priority contest over a reserve… Continue Reading