The bankruptcy of a tenant is disruptive and may be confusing to a landlord; however, arming yourself with knowledge of some warning signs of financial distress and an understanding of your basic rights will, along with your trusted legal advisor, help you be prepared in the unlucky event that your tenant goes bankrupt.
3 Signs of an Impending Bankruptcy
1. Rent Delinquency
This article has been contributed to the blog by Dave Rosenblat and Mary Angela Rowe.
In its June 11, 2014 decision in Iona Contractors Ltd. (Re), 2014 ABQB 347 (“Iona Contractors”), the Court of Queen’s Bench of Alberta (the “Alberta QB”) held that the trust created by section 22 of the Builders’ Lien Act (Alberta) is not effective in the bankruptcy of a would-be trustee debtor. This result is consistent with, but reached completely independently of, the recent Ontario Superior Court of Justice (Commercial List) decision in Royal Bank of Canada v. Atlas Block Co.
The British Columbia Court of Appeal has overturned the B.C. Supreme Court decision inKBA Canada1, which was reviewed in the September 2012 issue of Fully Secured.
The doctrine of federal paramountcy provides that where there is an inconsistency between validly enacted but overlapping provincial and federal legislation, the provincial legislation is inoperative to the extent of the inconsistency and the remainder of the provincial legislation is unaffected.
This article has been contributed to the blog by David Rosenblat and Justine Erickson.
Key points
When deciding whether to grant an order that administrators may sell secured assets as if they are not subject to security the court will:
I. Introduction
This article has been contributed to the blog by Patrick Riesterer. Patrick Riesterer is an associate in the insolvency and restructuring group of Osler, Hoskin & Harcourt LLP.
NORTH OF THE BORDER UPDATE