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Court Confirmation of Strata Wind-Up Resolutions - The Experience So Far in B.C.

Introduction

Before July 2016, in order to wind-up a strata corporation voluntarily through a liquidator in B.C., unanimous approval of the strata owners was generally required. The unanimity requirement made strata wind-ups a rare event, and consequently it was exceedingly difficult for owners to sell a strata complex in its entirety for redevelopment. In an influential 2015 report, the B.C. Law Institute (“BCLI”) identified some of the problems with the unanimity requirement:

Canada, British Columbia, Insolvency & Restructuring, Litigation, Real Estate, McCarthy Tétrault LLP, Liquidator (law), British Columbia Supreme Court
Operator’s Liens and the PPSA Priority Regime

Joint venture partners commonly enter into operating agreements which grant operators a security interest, referred to as an operator’s lien. Operator’s liens are, for the most part, consensual and contractual security interests subject to the provisions of the Personal Property Security Act, RSA 2000, c P-7 (the “PPSA”) and the priority regime set out therein.

Canada, Insolvency & Restructuring, Litigation, McCarthy Tétrault LLP
Proposed Amendments to Insolvency Legislation Granting Super-priority to Pension Plan Deficits and Employee Benefits

This fall, the NDP and the Bloc Québécois (“Bloc”) have both introduced private member’s bills seeking to amend the Bankruptcy and Insolvency Act(“BIA”) and the Companies’ Creditors Arrangement Act (“CCAA”).

Canada, Quebec, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, McCarthy Tétrault LLP, Bankruptcy, Unemployment benefits, Canada Pension Plan Act 1985, Bankruptcy and Insolvency Act 1985 (Canada)
Crown priority under section 222(3) of the Excise Tax Act

We have recently profiled conflicting cases (available here and here) dealing with a priority contest between supe

Canada, Insolvency & Restructuring, Litigation, Tax, McCarthy Tétrault LLP, Bankruptcy, Debtor, Excise, Secured creditor, Canada Revenue Agency, Income-Tax Act 1961 (India), Supreme Court of Canada, Federal Court of Appeal (Canada)
Federal Reserve Adopts Rule Requiring GSIBs to Amend QFC Transactions to Limit Termination Rights of Counterparties

On September 1, 2017, the Board of Governors of the Federal Reserve System (the Federal Reserve) adopted a rule (the Rule)1 that will require global systemically important U.S. bank holding companies (U.S. GSIBs)2 and most of their subsidiaries to amend a range of derivatives, short-term funding transactions, securities lending transactions and other qualifying financial contracts (QFCs). The required amendments will limit counterparty termination rights related to certain U.S. GSIB resolution and bankruptcy proceedings.

USA, Banking, Derivatives, Insolvency & Restructuring, Sidley Austin LLP, Bankruptcy, Bank holding company, Office of the Comptroller of the Currency (USA), Federal Deposit Insurance Corporation (USA), Federal Reserve (USA), International Swaps and Derivatives Association, Dodd-Frank Wall Street Reform and Consumer Protection Act 2010 (USA)
Ultra Decision Awards "Enormous" Make-Whole Amount and Post-Petition Default Interest

On September 21, 2017, the United States Bankruptcy Court for the Southern District of Texas (the Court) held, over the objection of Ultra Petroleum Corp.

USA, Insolvency & Restructuring, Litigation, Sidley Austin LLP, United States bankruptcy court, US District Court for Southern District of Texas
Alberta Court of Queen’s Bench Reiterates Court’s Discretion to Grant an Interim Financing Charge “Super-Priority” Status in the Face of a Deemed Trust Under the Income Tax Act

This blog’s most recent post considered the Supreme Court of Nova Scotia’s June 2017 decision of Rosedale Farms Limited, Hassett Holdings Inc., Resurgam Resources (Re) (“Rosedale”) where the Cou

Canada, Insolvency & Restructuring, Litigation, McCarthy Tétrault LLP, Secured creditor, Canada Revenue Agency, Bankruptcy and Insolvency Act 1985 (Canada)
Deemed Trust for Unremitted Withholdings Trumps Interim Financing Charge in Recent Nova Scotia Supreme Court Decision

In the recent decision of Rosedale Farms Limited, Hassett Holdings Inc., Resurgam Resources (Re) (“Rosedale”), the Supreme Court of Nova Scotia held that a deemed trust for unremitted withholdings under sections 227(4)

Canada, Nova Scotia, Alberta, Insolvency & Restructuring, Litigation, McCarthy Tétrault LLP, Canada Revenue Agency, Bankruptcy and Insolvency Act 1985 (Canada)
Alberta Court clarifies ranking of linear property tax claims

A recent unreported decision in the Alberta Court of Queen’s Bench has clarified the ranking of certain municipal tax claims against a bankrupt in Alberta. In Bank of Nova Scotia et al v. Virginia Hills Oil Corp.

Canada, Alberta, Insolvency & Restructuring, Litigation, Real Estate, McCarthy Tétrault LLP, Bankruptcy, Property tax, Bankruptcy and Insolvency Act 1985 (Canada)
Recast EU Regulation on Insolvency Proceedings Comes Into Force

On June 26, 2017, the recast EU regulation on insolvency proceedings1 (the Recast Insolvency Regulation) came into force.

Existing Legislation

European Union, Banking, Insolvency & Restructuring, Litigation, Sidley Austin LLP