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Ontario Court rejects reverse vesting order for the first time

In 2015, Justice Wilson-Siegel approved a new form of vesting order, referred to as the "reverse vesting order" (or RVO) as part of the restructuring in Plasco Energy (Re). An RVO is a court order that transfers unwanted assets and liabilities out of a debtor company into a (oftentimes newly incorporated) affiliated company, referred to as "ResidualCo." The debtor company is left holding only the assets and liabilities the purchaser wants to acquire.

Canada, Ontario, Insolvency & Restructuring, Litigation, Gowling WLG, Court of Appeal for Ontario
Recent Ontario Court of Appeal decision provides insight on the recognition of foreign orders

Many describe the United States as Canada's most important trade partner. Cross-border insolvency proceedings between the two jurisdictions are frequent and the recognition by one country's court of the other's bankruptcy orders is an important tool in facilitating the restructuring of companies with operations that spread across North America. A recent decision from the Ontario Court of Appeal (leave to appeal of which was denied by the Supreme Court of Canada) invites us to reflect on the delicate balance between comity for foreign orders and Canada's sovereignty over domestic laws.

Canada, USA, Ontario, Insolvency & Restructuring, Litigation, Gowling WLG, Court of Appeal for Ontario, Ontario Superior Court of Justice
To vest or not to vest: interests in land and the powers of insolvency courts

On June 19, 2019, the Ontario Court of Appeal released its decision in Third Eye Capital Corporation v. Ressources Dianor Inc./Dianor Resources Inc. [1], addressing the following issues:

Canada, Ontario, Capital Markets, Insolvency & Restructuring, Litigation, Gowling WLG
Third time's a charm for Alberta regulator: How the SCC decision in Redwater could change the role of environmental orders in Ontario insolvency proceedings

1. Introduction

Canada, Alberta, Environment & Climate Change, Insolvency & Restructuring, Litigation, Gowling WLG, Bankruptcy and Insolvency Act 1985 (Canada), Supreme Court of Canada, Court of Appeal of Alberta
Equitable mootness and arbitration: first impressions in the Ninth Circuit

2012 is shaping up as a year of bankruptcy first impressions for the Ninth Circuit. The court of appeals sailed into uncharted bankruptcy waters twice already this year in the same chapter 11 case. On January 24, the court ruled in In re Thorpe Insulation Co., 2012 WL 178998 (9th Cir. Jan. 24, 2012) ("Thorpe I"), that an appeal by certain nonsettling asbestos insurers of an order confirming a chapter 11 plan was not equitably moot because, among other things, the plan had not been "substantially consummated" under the court's novel construction of that statutory term.

USA, Insolvency & Restructuring, Litigation, Jones Day, Ninth Circuit, Tenth Circuit
An overview of Chapter 9 of the Bankruptcy Code: municipal debt adjustments

As attention shifts from the global financial crisis of 2008–2009 to the global sovereign crisis that currently is affecting much of Europe, lawmakers are scrambling to create new laws and regulations designed to stave off the next financial crisis.[1] Meanwhile, a different threat quietly has been growing in America's states, cities, towns, municipalities, and other political subdivisions.

USA, Insolvency & Restructuring, Public, Jones Day, Bankruptcy, Employee Retirement Income Security Act 1974 (USA), Swap (finance), Debt, Foreclosure, Credit default swap, Pension Benefit Guaranty Corporation