In the course of the company's restructuring proceedings, Nortel Network Corp.'s board decided that it would continue to make contributions to the company's pension plans. "Typically, a company facing insolvency doesn't do that," says David Vincent of Ogilvy Renault LLP's Toronto office. "But throughout, the directors were operating with a case called Slater Steel in the back of their minds." As well they might.

The Insolvency Institute of Canada (“IIC”) Task Force on Pension Reform (the “Task Force”) respectfully submits this report on behalf of the leading organization of insolvency professionals in Canada.

While credit bidding has an established history in Canada, there is little case law on the topic. The Companies’ Creditors Arrangement Act (CCAA) proceedings of the Canwest Publishing Group (Canwest) provide the best and most recent example of the considerations in a credit bid, including the establishment of a fair process for the stakeholders, no matter how unique. In this case, all three motivations for credit bidding were at play.

Reproduced with permission of the publisher from National Insolvency Review, Vol. 27, No. 5, October 2010.

Reproduced with permission of the publisher from National Insolvency Review, Vol. 27, No. 5, October 2010.

Reproduced with permission of the publisher from Commercial Insolvency Reporter, Vol. 23, No. 1, October 2010.

Pursuant to an order issued on June 9 2010 in Fifth Third Bank v MPI Packaging Inc, the Ontario Court of Appeal dismissed an appeal from a disgruntled bidder and confirmed the invalidity of referential bids in Ontario. Grant Thornton Ltd was appointed as receiver over the assets, property and undertakings of MPI Packaging Inc, an Ontario producer of bottle containers. Before the appointment of the receiver, MPI commenced an action against Zuckerman-Honickman Incorporated (ZH) (the 'litigation') and a few days later ZH commenced an action against MPI and its president, Ronald O'Brien.

On May 4, 2010, AbitibiBowater Inc. announced that it and certain of its Canadian and US subsidiaries filed with the court in Canada a draft Plan of Reorganization and Compromise and with the court in the US a draft Debtors’ Joint Plan of Reorganization.

On March 22, 2010, the Superior Court of Quebec approved a plan of arrangement under the Canada Business Corporations Act [CBCA], R.S.C. 1985, c. C-44, that allowed a corporation, MEGA Brands Inc., to achieve a worldwide restructuring of its business under a corporate statute, rather than a more typical insolvency and restructuring statute like the Companies’ Creditors Arrangement Act, R.S.C. 1985, c. C-36.