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SCOTUS Denies Relief for Sacklers’ OxyContin Pains

On June 27, 2024, the Supreme Court of the United States (“SCOTUS” or the “Court”) released its widely-anticipated decision in Harrington, United States Trustee, Region 2 v. Purdue Pharma L.P.

Canada, USA, Insolvency & Restructuring, Litigation, McCarthy Tétrault LLP, Supreme Court of the United States, United States bankruptcy court
Supreme Court of Canada confirms priority status of restructuring charges over CRA deemed trusts

The Supreme Court of Canada (“SCC”) has released its decision in Canada North, conclusively resolving the priority dispute between deemed trusts created under the federal “fiscal statutes” (being the Income Tax Act (the “ITA”), the

Canada, Insolvency & Restructuring, Litigation, McCarthy Tétrault LLP, Companies' Creditors Arrangement Act 1933 (Canada), Supreme Court of Canada
Alberta Court of Queen’s Bench rules that end-of-life environmental obligations are not always first in priority, in contrast to the landmark Redwater decision

The recent decision of Justice B.E.

Canada, Alberta, Energy & Natural Resources, Insolvency & Restructuring, Litigation, McCarthy Tétrault LLP, Bankruptcy and Insolvency Act 1985 (Canada)
Insolvency Amendments Now in Force Under the BIA and CCAA

Extensive amendments to the Bankruptcy and Insolvency Act (“BIA”) and Companies’ Creditors Arrangement Act (“CCAA”) coming into force on November 1, 2019 through Bill C-97 will have a significant effect on certain aspects of insolvency proceedings commenced after that date. The wide-ranging revisions to both the BIA and CCAA will likely foster changes to the currently existing insolvency and restructuring practice in Canada.

Bill C-97 Overview

Bill C-97 amends both the BIA and CCAA to:

Canada, Insolvency & Restructuring, McCarthy Tétrault LLP, Debtor
Entrée en vigueur de modifications à la LFI et à la LACC portant sur l’insolvabilité

Des modifications importantes à la Loi sur la faillite et l’insolvabilité ("LFI") et à la Loi sur les arrangements avec les créanciers des compagnies ("LACC") entreront en vigueur le 1er novembre 2019 avec l’adoption du projet de loi C-97. Elles auront une incidence importante sur certains aspects des procédures d’insolvabilité entreprises après cette date.

Canada, Insolvency & Restructuring, Public, McCarthy Tétrault LLP
Alberta Court of Appeal confirms super-priority status of restructuring charges

The ongoing priority dispute between deemed trusts created under federal “fiscal statutes” (being the Income Tax Act, the Canada Pension Plan Act and the Employment Insurance Act) and priming charges arising under restructuring and insolvency legislatio

Canada, Alberta, Insolvency & Restructuring, Litigation, McCarthy Tétrault LLP, Companies' Creditors Arrangement Act 1933 (Canada), Canada Pension Plan Act 1985, Bankruptcy and Insolvency Act 1985 (Canada)
Post-filing suppliers do not implicitly benefit from any priority on the proceeds of sales of assets in CCAA proceedings

The Québec Court of Appeal confirmed that unpaid post-filing suppliers, which had neither sought a court-ordered charge to secure their post-filing claims nor availed themselves of their right to stop supplying goods or services to the debtor, cannot claim an implicit priority on the proceeds of sales of assets in proceedings under the Companies’ Creditors Arrangement Act proceedings.

Background: going-concern sales of optometry clinics

Canada, Quebec, Insolvency & Restructuring, Litigation, McCarthy Tétrault LLP, Debtor, Companies' Creditors Arrangement Act 1933 (Canada)
Quebec Court of Appeal decision in Bluberi CCAA proceedings

PLAN SPONSOR ENTITLED TO VOTE AS CREDITOR AND CREDITOR APPROVAL REQUIRED TO IMPLEMENT LITIGATION FUNDING AGREEMENT.

Canada, Quebec, Company & Commercial, Insolvency & Restructuring, Litigation, McCarthy Tétrault LLP, Companies' Creditors Arrangement Act 1933 (Canada), Quebec Court of Appeal