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Ontario Court Approves of Use of Reverse Vesting Transactions and Provides Guidance for Future Transactions

The Ontario Superior Court of Justice (Commercial List) (the “Court”) in Re Harte Gold Corp.,[1]issued its first published decision on the use of reverse vesting orders (“RVOs”) finding that the

Canada, Ontario, Company & Commercial, Insolvency & Restructuring, Stikeman Elliott LLP, Ontario Superior Court of Justice, British Columbia Supreme Court
UK High Court judgment on ISDA Default Rate calculations in Lehman Waterfall IIC, and supplemental judgment on statutory interest and currency conversion claims in Waterfall IIA and IIB

The High Court in London handed down judgment on Part C of the Lehman Waterfall II Application on 5 October 2016.

The judgment examines the extent of creditors’ entitlements to Default Rate interest on debts arising under ISDA Master Agreements governed by English law and New York law. As some £4.4 billion of LBIE’s admitted claims arise under ISDA Master Agreements and the debts were outstanding for more than five years, this judgment will materially influence the amount of money which must be applied in satisfaction of creditors’ entitlements to statutory interest.

United Kingdom, Banking, Derivatives, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, International Swaps and Derivatives Association, Lehman Brothers
GST/HST deemed trust is rendered ineffective against secured creditors post-bankruptcy

In its decision in The Queen v. Callidus Capital Corporation1, rendered on August 17, 2015, the Federal Court of Canada examined, on a retrospective basis, the Crown's absolute priority regarding proceeds remitted to secured creditors from the assets of a tax debtor that are deemed to be held in trust (deemed trust) under section 222 of the Excise Tax Act (the "ETA") prior to such tax debtor's bankruptcy.

Canada, Insolvency & Restructuring, Litigation, Tax, Stikeman Elliott LLP, Bankruptcy, Debtor, Secured creditor