This article examines the emerging trend of U.S.-based companies with Canadian ties initiating primary insolvency proceedings in Canada and seeking recognition in the United States under Chapter 15 of the U.S. Bankruptcy Code. As described herein, this two-step strategy enables debtors to take advantage of the flexibility and efficiency of Canadian restructuring regimes, while securing key U.S. bankruptcy protections.
A Strategic Shift in Cross-Border Insolvency
On January 26, 2026, the Court of King’s Bench of Alberta (ABKB) held that the Alberta Department of Energy and Minerals (Alberta Energy) is required to first advance its claim for royalty arrears owed by an insolvent energy company within ongoing restructuring proceedings of that insolvent company, before seeking recovery from jointly liable solvent co-lessees.
Structuring royalties as interests in land can provide significant protection in subsequent insolvency proceedings, but a recent decision from the Court of Appeal of Alberta underscores that technicalities may trump intentions. In Invico Diversified Income Limited Partnership v.
Introduction
When a professional corporation operates with equipment owned personally by its director, how do secured creditors assert priority over proceeds from a receivership sale?
Introduction
Reverse vesting orders (“RVOs”) have evolved from a creative restructuring tool used sparingly under the Companies’ Creditors Arrangement Act (“CCAA”) into a flexible instrument increasingly considered in receivership and other insolvency proceedings. The past two years have seen Canadian courts (particularly in British Columbia) grapple with whether, and in what circumstances, an RVO can be justified under the Bankruptcy and Insolvency Act (“BIA”).
The Supreme Court of New South Wales has clarified the circumstances in which a liquidator may recover deposit funds paid to a third party and the extent to which a counterparty may rely on the good-faith defence under section 588FG of the Corporations Act 2001 (Cth).
This past year has featured a diverse range of consequential, precedent-setting insolvency disputes across various industries, reflecting both the breadth of challenges facing Canadian businesses and the adaptability of Canada’s insolvency framework in resolving these issues. The most consequential decisions in which we have been involved are described below, alongside key takeaways for stakeholders participating in insolvency proceedings in 2026 and beyond.
The collapse of The Lion Electric Company and its affiliates (Lion Electric) has attracted considerable attention as a sign of potential trouble in Québec’s manufacturing and electric vehicle sectors1.
Under the Act to amend theMining Act and other provisions1 (the “Act”), assented to on November 29, 2024, certain amendments were made to the Mining Act.2
In this bulletin, we will focus on the rules that have been in effect as of the Act’s date of assent concerning the assignment of a mining lease or a mining concession, and those that have been in effect since November 29, 2025, concerning the transfer of an exclusive exploration right (“EER”), formerly known as a claim.