Lear Corporation, a Delaware corporation, its Canadian subsidiaries, and other affiliates, sought an Order under s. 18.6 of the Companies’ Creditors Arrangement Act (“CCAA”) for a declaration that Chapter 11 proceedings in the U.S. Bankruptcy Court (New York) constituted “foreign proceedings” and for a stay of proceedings. Introduced to the CCAA in 1997 to assist with the administration of the increasing number of cross-border insolvencies, s.18.6 is aimed at increasing cooperation, comity, and coordination between courts of different jurisdictions.

Intracoastal Systems Engineering Corporation ("Intracoastal") failed to remit tax, employment insurance premiums and Canadian Pension Plan contributions deducted from employees' paycheques in the amount of $166,314.89.

The Ontario Court of Appeal has confirmed the asset backed commercial paper CCAA Plan of Arrangement (2008 CaswellOnt 4811 (C.A.)). The reasoning of the Ontario Superior Court approving the Plan of Arrangement was reviewed in previous editions of this Newsletter.

An Ontario Court has provided guidance on determining a person's centre of main interests (COMI) for the purposes of the UNCITRAL Model Law on Cross-Border Insolvency (as implemented in New Zealand, in the Insolvency (Cross Border) Act 2006, and in Canada).

Under the Model Law, a "foreign main proceeding" is defined as a proceeding in the jurisdiction where the debtor has its COMI, with a presumption that a debtor company's COMI is where its registered office is.

Whether—and in what circumstances—a debtor should pay creditors a make-whole premium continues to be litigated in bankruptcy courts. Last week, as reported by Bloomberg, Judge Dorsey (Delaware) ruled that the debtor – Mallinckrodt Plc – did not need to pay a make whole premium to first lien lenders in order to reinstate such obligations under the debtor’s chapter 11 plan.

Enhancing lender priority over pension deficiencies in Canada in the post Indalex era - more guidance from the courts
Three recent cases address open issues from the 2013 Indalex decision and point the way to strategies to limit financier exposure to pension deficiency priority

When a Ponzi scheme collapses, as with musical chairs, there will be some investors with a place to sit, while others are bereft of such comfort.

Insolvency - 2013/14 Annual Case Update February 7, 2014 By Frank Spizzirri, Shaheen Karolia and Jonathan Tam (Student at Law) Baker & McKenzie LLP (Toronto) 2 Case Index Case Name Page # 1. The Indalex Update (Aveos/Grant Forest/Timminco) a) Aveos Fleet Performance Inc., 2013 QCCS 5762 b) Grant Forest Products Inc. v. GE Canada Leasing Services Co., 2013 ONSC 5933 c) Timminco ltée (Arrangement relatif à), 2014 QCCS 174 4 2. Re Northstar Inc. (Director Liabilities in connection with Environmental Costs) 9 3. Re Moore, 2013 ONCA 769 11 4. Re Dilollo, 2013 ONCA 550 13 5. Re Schreyer.

Indalex Limited ("Indalex") was the sponsor and administrator of two underfunded defined benefit pension plans – one for salaried employees and one for executives. The salaried plan was in the process of being wound up.

The Federal Government has announced that September 18, 2009 has been established as the coming-into-force date for most of the remaining unproclaimed amendments to the Bankruptcy and Insolvency Act (BIA) and Companies’ Creditors Arrangement Act (CCAA).