Two recent Supreme Court of Canada decisions demonstrate that the corporate attribution doctrine is not a one-size-fits-all approach.

Court approval of a sale process in receivership or Bankruptcy and Insolvency Act (“BIA”) proposal proceedings is generally a procedural order and objectors do not have an appeal as of right; they must seek leave and meet a high test in order obtain it. However, in Peakhill Capital Inc. v.

The U.S. Court of Appeals for the First Circuit recently overturned its own prior guidance to hold that an official creditors’ committee had an unconditional statutory right to intervene in an adversary proceeding. The First Circuit joined the Second and Third Circuits to recognize that the right to intervene provided by the Bankruptcy Code is not limited to the main bankruptcy case, contrary to the long-standing rule in the Fifth Circuit. However, the First Circuit also held that the scope of intervention may be qualified, with limits set by the trial court on a case-by-case basis.

The Bankruptcy Code limits in many ways the rights of nondebtors under contracts with a debtor in bankruptcy. There are, however, some crucial exceptions, which Congress deemed important for the orderly function of the securities markets. In particular, agreements governing securities repurchase (or repo) transactions involving a financial institution may be terminated and liquidated notwithstanding the bankruptcy filing of the repo seller.