In Convoy Supply Ltd. v.
Canada, Insolvency & Restructuring, Litigation, McCarthy Tétrault LLP, Bankruptcy and Insolvency Act 1985 (Canada), Court of Appeal for Ontario
Overview and Why This Case Matters
Canada, British Columbia, Arbitration & ADR, Insolvency & Restructuring, Litigation, McCarthy Tétrault LLP, UNCITRAL, Bankruptcy and Insolvency Act 1985 (Canada), Ontario Superior Court of Justice
The Ontario Court of Appeal determines when it is appropriate to vest out a royalty interest as part of an insolvency proceeding
The Importance of the Decision
Canada, Ontario, Energy & Natural Resources, Insolvency & Restructuring, Litigation, McCarthy Tétrault LLP
Cancellation of debt a key element of most restructurings generally triggers taxable income. The German tax authorities had issued an administrative decree (the "Tax Restructuring Decree" - Sanierungserlass), however, declaring that, upon the satisfaction of certain requirements and conditioned on forfeiture of any loss carry forwards, the cancellation of debt income ("CODI") would not be taxed.