An Ontario court cleared the way for a receiver to wind up bankrupt lender Bridging Finance Inc., rejecting an attempt by investors to stall the liquidation, Bloomberg News reported. A group of Bridging unitholders had asked the Ontario Superior Court to allow more time to consider proposals to sell or reorganize the funds. But Justice Geoffrey Morawetz turned down their request and said PriceWaterhouseCoopers can cease its attempts to find a buyer, according to court documents posted Tuesday.
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Canada
John Aquino, the former president of a major and now bankrupt Ontario construction contractor, plans to appeal a provincial court ruling that puts him and his associates on the hook for $33 million drained from the company, according to his attorney, the Engineering News-Record reported. The Ontario Court of Appeal upheld on March 10 a previous court decision that ordered Aquino, former president of Bondfield Construction Co. Ltd.
A work stoppage at Canadian Pacific (CP) Rail has started, and the timing is unfortunate, says one employer group, HRReporter.com reported. “The timing could not be worse for our members,” say Corinne Pohlmann, senior vice-president of national affairs, and Jasmin Guenette, vice-president for national affairs, at the Canadian Federation of Independent Business (CFIB).
A prominent Ottawa business expert is predicting a wave of bankruptcies in the coming months as surging prices at gas pumps and grocery stores prompt Canada’s central bank to further raise its benchmark interest rate in a bid to put the brakes on inflation, the Ottawa Business Journal reported. Ian Lee, an associate professor at Carleton University’s Sprott School of Business, expects the Bank of Canada to impose “multiple” interest rate hikes this year as it tries to rein in an annual inflation rate that climbed to 5.7 percent in February, its highest level since August 1991.
A commodities rally sparked by Russia's invasion of Ukraine will push Canadian inflation higher for longer, with the headline rate now seen peaking at or above 6%, forcing the central bank to raise interest rates more aggressively, economists told Reuters. Canada's inflation rate has already surged well above the 5.1% that the Bank of Canada forecast for the first quarter in January, highlighting the tough road ahead to get price growth back down to the 2% target.
A group of five banks led by Royal Bank of Canada is stuck holding $1.7 billion of loans for software company SS&C Technologies Holdings Inc. after falling debt prices forced the postponement of the offering to investors on Wednesday, Bloomberg reported. The deal was pulled because of market conditions, according to a person with knowledge of the matter. The banks canceled a planned call with lenders — the official start of the marketing process — prior to its scheduled 10 a.m. start in New York.
An Alberta, Canada, trucking company specializing in fluid transportation for the oil sector is seeking credit protection as it faces over CA$3 million ($2.3 million) in debt to dozens of companies and the country’s tax authority, FreightWaves reported. Prairie Tech Oilfield Service, based in Elk Point, filed a notice in the Court of Queens Bench of Alberta on Feb. 22 that the company is insolvent and intends to make a proposal to its creditors under Canada’s Bankruptcy and Insolvency Act.
As the Russia-Ukraine crisis propels crude oil to its highest level in 14 years, the historic link between the Canadian dollar and energy prices has weakened, leaving the Bank of Canada with one less tool to fight inflation, Reuters reported. The normal tight relationship between the Canadian dollar and oil has typically meant the central bank could rely on a stronger currency to ease inflation pressures brought on by higher energy prices. Gains for the loonie would reduce the cost of Canada's imports.
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The Bank of Canada lifted interest rates by a quarter percentage point and signaled more hikes are coming as it starts to wrestle inflation down from a three-decade high, Bloomberg News reorted. Policymakers led by Governor Tiff Macklem increased the benchmark overnight rate to 0.5% at a decision Wednesday in Ottawa, in a widely expected move. Officials also said they expect to raise borrowing costs by more because of elevated inflation pressures, but refrained from starting a run off of the banks holdings of government bonds.
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