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

What you need to know

The entry of the Cape Town Convention into force under Canadian law is a positive step, but has led to a legislative “black hole” in the protection provided to certain aviation creditors, bringing with it considerable uncertainty and potentially expensive ramifications.

The Cape Town Convention in Canada

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

In the last few years, pension deemed trust issues have been a subject of debate before the courts.

Bankruptcy trustees should clearly communicate to the bankrupt their intent to make a claim against the non-exempt equity in the bankrupt's property at the time of the assignment into bankruptcy, according to the recent decision of the British Columbia Supreme Court in Re Barter.1 A failure to communicate such an intent may result in the trustee being unable to realize the non-exempt equity or, as in Re Barter, the absolute discharge

On December 19, 2013, the Ontario Court of Appeal held that the Registrar of Motor Vehicles (the “RMV”) cannot deny vehicle permits to individuals on account of pre- bankruptcy debts owing to the ETR Concession Company Limited (the  “ETR”). Based  on the  intent and  purpose of federal bankruptcy law to permit debtors to obtain a “fresh start,” it was concluded that the provincial act establishing the ETR conflicts with bankruptcy law and was, as a result, unconstitutional in part.

Background

On April 17, 2014, the Supreme Court of Canada denied leave to appeal to Nortel from the decision rendered by the Ontario Court of Appeal last October. For additional details and commentary on the decision of the Ontario Court of Appeal, please see our November 2013 Blakes Bulletin: Ontario Court of Appeal Applies AbitibiBowater Test in Concurrent Decisions.

Briere Sound Ltd. v. Briere, 2014 BCSC 417 (CanLII), decided March 17, 2014