Pensions v. DIP charge: the continuing Timminco saga unions’ motion for leave to appeal denied

The law in Canada concerning priorities between the statutory deemed trusts relating to pension plan contributions and certain pension fund shortfalls on the one hand, and court ordered charges in favour of DIP lenders on the other hand has been in a state of flux ever since the decision of the Ontario Court of Appeal (the “OCA”) in Re Indalex.

Filed under:
Canada, Ontario, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, Osler Hoskin & Harcourt LLP, Trade union
Authors:
Steven Golick , Lindsay Offner
Location:
Canada
Firm:
Osler Hoskin & Harcourt LLP
DIP financing rules crystallized: interim DIP financing arrangements approved by the Ontario Court of Appeal

In Re Crystallex, the Ontario Court of Appeal (“Court of Appeal”) unanimously upheld three orders of the Ontario Superior Court of Justice (“OSCJ”) that (1) authorized bridge financing, (2) authorized interim financing

Filed under:
Canada, Ontario, Arbitration & ADR, Insolvency & Restructuring, Litigation, Osler Hoskin & Harcourt LLP, Bridge loan, Court of Appeal for Ontario
Authors:
Steven Golick , Mary Paterson , Lindsay Offner
Location:
Canada
Firm:
Osler Hoskin & Harcourt LLP
Ontario Court of Appeal upholds extraordinary DIP financing arrangements in CCAA proceedings over objections of majority creditors

In Re Crystallex, 2012 ONCA 404, the Ontario Court of Appeal unanimously upheld unusually broad DIP financing arrangements granted pursuant to section 11.2 of the Canadian Companies' Creditors Arrangement Act (CCAA) despite the vociferous objections of substantially all of Crystallex’s creditors.  By dismissing the appeal, the Court endorsed the supervising CCAA judge’s approval of:

Filed under:
Canada, Ontario, Banking, Insolvency & Restructuring, Litigation, Osler Hoskin & Harcourt LLP, Court of Appeal for Ontario
Authors:
Lindsay Offner , Mary Paterson , Edward A. Sellers
Location:
Canada
Firm:
Osler Hoskin & Harcourt LLP