In Chandos Construction Ltd. v Deloitte Restructuring Inc., the Supreme Court of Canada confirmed the application of the common law anti-deprivation rule in the context of a Bankruptcy and Insolvency Act (BIA) proceeding.

Earlier this year, the Ontario Court of Appeal released its decision in Urbancorp Cumberland 2 GP Inc. (Re)[PDF], which clarifies the scope and effectiveness of a section 9(1) vendor’s trust under the Ontario Construction Lien Act in insolvency proceedings.

On July 20, 2020, the Court of Appeal of Québec (the QCA) released its reasons in Séquestre de Media5 Corporation,^[1] putting an end to a long-lasting debate on the availability of national receivers to Québec secured creditors.

On Thursday, 4 June 2020, the Office of the Director of Corporate Enforcement (“ODCE”) published a welcome reminder on points to be taken into account when considering liquidators’ reports and the likelihood of restriction proceedings as a consequence of dishonest or irresponsible conduct.

While the ODCE considers each company’s case on its own merits taking into account:

(i) the liquidator’s report on the relevant insolvent entity; and

(ii) any other relevant information obtained independently of the liquidator, broadly speaking:

On May 21, 2020, the Québec Court of Appeal (QCA) released its reasons in Arrangement relatif à 9323-7055 Québec inc. (Aquadis International Inc.)^[1](the Aquadis case).

Introduction

On May 8, 2020, the Supreme Court of Canada (SCC) released its written reasons in 9354-9186 Québec Inc. v. Callidus Capital Corp.^[1](the Bluberi case).

On April 15, 2020, the British Columbia Supreme Court denied an application by a married couple previously found to have contravened B.C. securities laws for an absolute or suspended discharge from bankruptcy under s. 172 of the Bankruptcy and Insolvency Act (the “BIA”). The ruling sends a strong message that securities law violators will have difficulty using the bankruptcy process to absolve themselves of the financial consequences of their misdeeds.

In our earlier article, we discussed the importance of timing in corporate recovery efforts and the difficulties facing companies with the examinership process and its legislative requirements.

Introduction

On August 29, 2019, the majority of the Alberta Court of Appeal held in Canada v. Canada North Group Inc., 2019 ABCA 314 (Canada North) that priming charges granted in a Companies’ Creditors Arrangement Act (CCAA) Initial Order can have priority over the Crown’s deemed trust for unremitted source deductions. ^[1]

With the Brexit deadline fast approaching, the ByrneWallace Brexit team address various issues which will impact upon businesses either trading with or through the UK, or with suppliers in the UK, and/or with UK staff based in Ireland or staff in the UK.

In this issue of our Spotlight on Brexit Series, we address Corporate Governance.

Critical issues for businesses to consider in the event of a no-deal Brexit or where transitional arrangements fail to ensure continuity in the treatment of UK companies as EEA undertakings include: