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Alberta Courts Confirm Restructuring Transactions with Select Creditors Not Oppressive

The Lightstream decision confirms that Canadian courts have the jurisdiction under the CCAA to both: (i) incorporate and apply the oppression remedy; and (ii) where appropriate, when oppressive conduct has occurred, grant an order requiring a corporation to issue additional securities. However, such jurisdiction is limited and defined by the scheme and purpose of the CCAA.

Canada, Alberta, Insolvency & Restructuring, Litigation, Borden Ladner Gervais LLP, Debtor, Companies' Creditors Arrangement Act 1933 (Canada)
Alberta Courts Confirm Restructuring Transactions with Select Creditors Not Oppressive and Comment on Availability of the Oppression Remedy in CCAA Proceedings

​In Re Lightstream Resources Ltd, 2016 ABQB 665 (Lightstream), the Court of Queen’s Bench of Alberta (Court) confirmed that it had jurisdiction to remedy oppressive conduct while a business is restructuring under the Companies’ Creditors Arrangement Act (CCAA). The decision also provides insight as to when a court might exercise its equitable jurisdiction to remedy oppressive conduct in a CCAA proceeding.

Background

Canada, Alberta, Insolvency & Restructuring, Litigation, Borden Ladner Gervais LLP, Companies' Creditors Arrangement Act 1933 (Canada), Court of Appeal of Alberta