Fulltext Search
Give this post superpriority – Supreme Court decides Sun Indalex Finance, LLC v. United Steelworkers

Introduction

The Supreme Court has issued its much-anticipated decision in Sun Indalex Finance, LLC v. United Steelworkers.

Canada, Banking, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, McCarthy Tétrault LLP, Conflict of interest, Debtor, Fiduciary, Beneficiary, United Steelworkers, Bankruptcy and Insolvency Act 1985 (Canada), Court of Appeal for Ontario
New priorities? The Ontario Superior Court applies Indalex and reaches a different result

On February 2 and 9, 2012, the Ontario Superior Court released two decisions in the ongoing proceedings of Timminco Limited and Bécancour Silicon Inc. (together, the Timminco Entities) under the Companies’ Creditors Arrangement Act (CCAA) that further develop the law regarding pension claim priorities in insolvency proceedings.

Canada, Ontario, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, McCarthy Tétrault LLP, Debtor, Ontario Superior Court of Justice
Indalex case to be heard by Supreme Court of Canada

Today, the Supreme Court of Canada agreed to hear an appeal of the unanimous decision rendered last April by the Ontario Court of Appeal (OCA) in Re Indalex Limited (Indalex). According to many commentators, the Indalex case turns accepted law on the priority of debtor in possession (DIP) and working capital security on its head and introduces new concerns for employers about how to properly discharge their sometimes conflicting duties under corporate law and under pension law.

Canada, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, McCarthy Tétrault LLP, Debtor in possession, Supreme Court of Canada, Court of Appeal for Ontario
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