The Québec Court of Appeal confirmed that unpaid post-filing suppliers, which had neither sought a court-ordered charge to secure their post-filing claims nor availed themselves of their right to stop supplying goods or services to the debtor, cannot claim an implicit priority on the proceeds of sales of assets in proceedings under the Companies’ Creditors Arrangement Act proceedings.

Background: going-concern sales of optometry clinics

The federal government’s budget implementation bill, Bill C-86[1], received Royal Assent on December 14, 2018. An aspect of the budget implementation bill is the amendment of various legislation, including the Patent Act, the Trademarks Act, as part of the government’s implementation of its intellectual property (“IP”) strategy.

In Yukon (Government of) v. Yukon Zinc Corporation, 2019 YKSC 39 (“Yukon Zinc”), the Yukon Supreme Court recently lifted a stay of proceedings imposed in proposal proceedings commenced in British Columbia by Yukon Zinc, a Vancouver-based mining company whose principal asset is the Wolverine Mine in Yukon.

The Ontario Court of Appeal determines when it is appropriate to vest out a royalty interest as part of an insolvency proceeding

The Importance of the Decision

In March 2019, Judge Stuart M. Bernstein of the U.S. Bankruptcy Court for the Southern District of New York ruled that lenders using clear and unambiguous language in their loan agreements may be entitled to prepayment premiums that they would have otherwise forfeited in a borrower’s bankruptcy. In In re 1141 Realty Owner LLC, Judge Bernstein acknowledged the general rule set forth in the U.S. Court of Appeals for the Second Circuit’s decisions in In re AMR Corp. and In re MPM Silicones, L.L.C.

In several cases since the seminal 2011 Delaware Supreme Court decision CML V LLC v. Bax, which held that creditors of Delaware LLCs lack standing to pursue derivative claims, the U.S. Bankruptcy Court for the District of Delaware has expanded the jurisprudence regarding the assertion of derivative claims and alternative entities. Most recently, in Gavin/Solmonese LLC v.

In a 2018 judgment discussed here, the Alberta Court of Queen’s Bench held that, by virtue of s.

The U.K. government is proposing to reintroduce preferential status to certain taxes in U.K. insolvencies beginning 6 April 2020. If enacted:

• certain taxes owed to HM Revenue & Customs (HMRC) would rank ahead of floating charges in U.K. insolvencies;
• the legislation would be retroactive, applying to such tax liabilities incurred at any time prior to insolvency; and
• it is likely to have a significant impact on asset-based loans (ABLs) involving U.K. obligors.

Introduction

On May 20, 2019, the U.S. Supreme Court ruled in Mission Product Holdings, Inc. v. Tempnology, LLC, 587 U.S. ___, that a debtor’s ability to reject executory contracts under Section 365(a) of the Bankruptcy Code does not permit the debtor to rescind trademark licenses. In concluding that trademark licensees cannot unilaterally be deprived of their rights to use a debtor’s mark, the Court resolved a long-standing circuit split that the International Trademark Association had referred to as “the most significant unresolved legal issue in trademark licensing.”

The Alberta Court of Appeal recently upheld an unreported decision of the Court of Queen’s Bench that unpaid taxes on linear property (which were pipelines and associated facilities in the case at bar) formed only unsecured claims against the debtors.