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SCC opens doors to litigation funding in insolvency proceedings

On May 8, 2020, the Supreme Court of Canada (SCC) released its reasons for the decision rendered in 9354-9816 Québec Inc. et al. v. Callidus Capital Corporation, et al on January 23, 2020. The SCC unanimously allowed the appeal from the Québec Court of Appeal’s decision, reinstating an order allowing third-party litigation funding in insolvency proceedings.

Background

Canada, Insolvency & Restructuring, Litigation, Borden Ladner Gervais LLP
SCC decision opens doors to litigation funding in insolvency proceedings

On January 23, 2020, the Supreme Court of Canada unanimously allowed the appeal from the Québec Court of Appeal’s decision in 9354-9186 Québec Inc. et al. v. Callidus Capital Corporation, et al., opening the doors to third-party litigation funding in insolvency proceedings in Canada.

Background

Canada, Insolvency & Restructuring, Litigation, Borden Ladner Gervais LLP, Debtor, Companies' Creditors Arrangement Act 1933 (Canada), Supreme Court of Canada
No mere rubber-stamp: Ontario court challenges the admissibility of fairness opinion in arrangement transaction

A recent decision at the Ontario Superior Court of Justice (Commercial List) brought to the fore the role of fairness opinions in solvent arrangement transactions. In Re ChampionIron Mines Limited (Champion) the court approved the arrangement but deemed the fairness opinion inadmissible on the basis that it failed to disclose the reasons underlying its conclusion.

Canada, Ontario, Insolvency & Restructuring, Litigation, Borden Ladner Gervais LLP, Admissible evidence, Bell Canada