introduction
This document provides a brief overview of insolvency proceedings in Canada. It outlines the Canadian legislative framework and briefly describes the receivership process, the bankruptcy regime and the formal restructuring alternatives available to debtors.
legislative framework
On October 30, 2009, the Supreme Court of Canada issued its much awaited decision regarding Revenue Quebec's creative "owenership" claim over the tax portions of a bankrupt's accounts recievable.
Article L 611-4 to L 611-15 of the French Commerce Code.
Act n° 2005-845 of 26 July 2005, as completed and amended, has created a new out-of-court settlement process known under French law as “Conciliation,” replacing the former amicable settlement or “règlement amiable.”
- In re TOUSA, Inc., 408 B.R. 913 (Bankr. S.D. Fla. 2009). Prepetition lenders could not assert third-party claims against the debtors for breach of contract based on loan document representation that debtor borrowers, on a consolidated basis, would be solvent after the financing transaction because such claims did not depend on the outcome of the fraudulent transfer claims of the creditors, which asserted that individual debtor subsidiaries were insolvent.
- In re Metaldyne Corp., 409 B.R. 671 (Bankr. S.D.N.Y. 2009).
After more than a decade of rising real estate values, the tide has turned against commercial and development real estate, prompting major builders and developers to commence Chapter 11 bankruptcy proceedings. As a result of the enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) in 2005, many Chapter 11 cases that revolve around real estate will fall within the Bankruptcy Code’s definition of single asset real estate (SARE) cases and are thus subject to special provisions in the Bankruptcy Code.1 As a result, it is now time to think about SARE.
Introduction
With many companies going through financial trouble, there is a fear among licensees that they will lose their right to use licensed intellectual property ("IP") if the licensor becomes insolvent and wants to restructure. Up until now there has been much uncertainty in the common law as to whether an insolvent debtor may disclaim an IP licence agreement in a restructuring.
Caisse Populaire Desjardins de l’Est de Drummond v. Canada, 2009 SCC 29
On September 18, 2009, long-awaited amendments to the Bankruptcy and Insolvency Act (“BIA”) and the Companies’ Creditors Arrangement Act (“CCAA”) take effect that will have a significant impact on commercial insolvencies in Canada. While many of these changes reflect existing practice and case law, some introduce more novel concepts not developed by courts, broadening what can be accomplished under the insolvency regime. This article comments on salient features of the new amendments.
Long-awaited amendments to Canada’s insolvency legislation came into force on September 18, 2009. The amendments materially reform both of Canada’s major insolvency statutes: the Bankruptcy and Insolvency Act (the “BIA”) and the Companies’ Creditors Arrangement Act (the “CCAA”). To a considerable degree the amendments codify 15 years of case law developments, but with modifications that could prove to be material in the next few years.