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The pre-filing sales process in CCAA proceedings

In a previous post we discussed how the Court of Queen’s Bench of Alberta recently authorized a sale transaction after being satisfied with the appropriateness of a sales process that was undertaken prior to the issuance of the receivership order.

Canada, Alberta, Company & Commercial, Insolvency & Restructuring, Litigation, McCarthy Tétrault LLP, Liquidation, Companies' Creditors Arrangement Act 1933 (Canada)
The critical supplier remedy and the continued use of inherent jurisdiction

Section 11.4 of the CCAA requires that persons identified as critical suppliers to a debtor company continue to provide goods and services on terms and conditions with the existing supply relationship.

Canada, Insolvency & Restructuring, Litigation, McCarthy Tétrault LLP, Credit (finance), Debtor, Supply chain, Stakeholder (corporate)
Franchise agreements may be assigned to another franchisee without consent upon bankruptcy

A recent Alberta appellate decision establishes that a trustee in bankruptcy may sell a franchise agreement to a third party, in spite of objections by the franchisor, under the Bankruptcy and Insolvency Act (BIA). The Alberta Court of Appeal’s decision in Ford Motor Company of Canada Ltd v Welcome Ford Sales Ltd contains three important messages for franchisors:

Canada, Alberta, Franchising, Insolvency & Restructuring, Litigation, McCarthy Tétrault LLP, Bankruptcy, Consent, Legal burden of proof, Franchise agreement, Ford Motor Company, Bankruptcy and Insolvency Act 1985 (Canada), Trustee, United States bankruptcy court, Court of Appeal of Alberta