Supreme Court To Release Landmark Indalex Insolvency Decision
Almost eight months after it heard oral arguments in the case, the Supreme Court of Canada will be releasing its decision in Sun Indalex Finance, LLC v. United Steelworkers on Friday, Feb. 1, 2013 at 9:45 AM, the Financial Post reported. The case involves an appeal from the Ontario Court of Appeal’s April 2011 judgment in Re Indalex Limited, a landmark case holding that pension plan deficiency claims can have priority over the claims of debtor-in-possession (DIP) lenders in the context of Companies’ Creditors Arrangement Act (CCAA) proceedings. From the date of the Court of Appeal’s judgment, borrowers and lenders have been askance at its implications. Since the judgment, borrowers who sponsor defined benefit plans have put on more stringent conditions and lenders have been worried about their security even when insolvency is not in the cards. Read more.