In the past few years, many automotive suppliers have been facing increasing financial or operational problems. The COVID-19 pandemic has exacerbated these problems and is putting some of these companies in considerable distress. The search for possible solutions is in full swing, and for financial investors or competitors with strong liquidity, there is the opportunity to acquire shares in the companies in crisis or alternatively in individual assets at comparatively favourable conditions.

The Supreme Court of Canada today released its highly anticipated decision in Iona Contractors Ltd. v Guarantee Company of North America, 2015 ABCA 240 dismissing the application for leave to appeal by the Trustee in Bankruptcy (the "Trustee") of the bankrupt, Iona Contractors Inc. ("Iona").

​Iona Contractors Ltd. v. Guarantee Company of North America

The Alberta Court of Appeal released its much anticipated decision addressing the interaction between the trust provisions of the Builders’ Lien Act (“BLA”) and the Bankruptcy and Insolvency Act (“BIA”) in Iona Contractors Ltd. v Guarantee Company of North America, 2015 ABCA 240 on July 16, 2015.