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Pensions and corporate insolvency: Ontario Court of Appeal releases surprising decision

The Ontario Court of Appeal released its decision in Indalex Limited (Re), 2011 ONCA 265 on April 7, 2011. The decision comes as a surprise to many pension and insolvency professionals, lenders and pension plan sponsors. The court, essentially, directed that monies held in reserve by the monitor appointed under the federal Companies Creditors Arrangement Act should be used to pay off pension fund deficits in preference to secured creditors.

Background

Canada, Ontario, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, Heenan Blaikie LLP, Credit (finance), Surety, Debtor, Fiduciary, Beneficiary, Liquidation, Common law, United Steelworkers, Companies' Creditors Arrangement Act 1933 (Canada), Personal Property Security Act 1990 (Canada), Court of Appeal for Ontario
Ruling interprets Bankruptcy Code provision to allow debtors to evade credit bid rights of secured creditors

On March 22, 2010, a three judge panel of the United States Court of Appeals for the Third Circuit issued a highly anticipated decision in the matter of In re Philadelphia Newspapers LLC, 2010 WL 1006647, (3rd Cir. Case No.

USA, Insolvency & Restructuring, Litigation, Nelson Mullins Riley & Scarborough LLP, Bankruptcy, Credit (finance), Debtor, Collateral (finance), Limited liability company, Secured creditor, Secured loan, Title 11 of the US Code, United States bankruptcy court, Fifth Circuit, Third Circuit
Officers and directors of troubled banks at risk of personal liability

In 2009, there were 140 failed banks. So far this year, 16 more banks have been seized by the FDIC. There are 702 banks currently on the FDIC's troubled banks list, and regulators and analysts predict that several hundred of those likely will fail over the next two years.

USA, Banking, Insolvency & Restructuring, Nelson Mullins Riley & Scarborough LLP, Shareholder, Fraud, Board of directors, Market liquidity, Mortgage loan, Summary offence, Holding company, Underwriting, Community bank, US Federal Government, Federal Deposit Insurance Corporation (USA)
The perils of partial wind-ups: Ontario Court of Appeal releases decision in Hydro One

The Ontario Court of Appeal released its decision in Hydro One Inc. v. Ontario (Financial Services Commission) on January 11, 2010. This was an appeal from the Ontario Divisional Court – see our Labour & Employment in the News dated April 18, 2008, that reported on the Divisional Court’s decision. The court dismissed the appeal, in favour of members of the Hydro One Pension Plan (the “Plan”).

Canada, Ontario, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, Heenan Blaikie LLP, Trade union, Retirement, Court of Appeal of England & Wales, Court of Appeal for Ontario
Solvency problems? Make sure to react swiftly

In these trying times for our economy and our financial system, every business leader should pay attention to the company’s needs for working capital for the year and prepare for any potential problem related to its lack of liquidities.

Canada, Banking, Insolvency & Restructuring, Heenan Blaikie LLP, Bankruptcy, Debtor, Unsecured debt, Refinancing, Cashflow, Credit rating, Companies' Creditors Arrangement Act 1933 (Canada), Bankruptcy and Insolvency Act 1985 (Canada)