The Business Corporations Act (Alberta) (ABCA) received an overhaul this week. Bill 84, Business Corporations Amendment Act, 2021 came into force on May 31, 2022. That Bill introduced several changes to the ABCA. These amendments are intended to modernize Alberta's corporate legislation to attract investment and make Alberta the leading province for corporations in Canada.
This overview is intended as an introductory summary to the Companies' Creditors Arrangement Act (CCAA), Canada’s principal statute for the reorganization of a large insolvency corporation. The CCAA applies in every province and territory of Canada, and even purports to have worldwide jurisdiction.
En 2021, plusieurs décisions judiciaires d’importance pour les prêteurs commerciaux, les entreprises et les professionnels de l’insolvabilité ont été rendues d’un bout à l’autre du Canada.
In 2021, several significant judicial decisions were rendered across Canada relevant to commercial lenders, businesses and restructuring professionals. This comprehensive report summarizes the key facts and core issues of importance in each case and provides status updates on the cases reported on in our February 2021 bulletin, Key Developments in Canadian Insolvency Case Law in 2020.
The U.S. Court of Appeals for the Fourth Circuit recently held that the “no fair ground of doubt” standard established by the Supreme Court of the United States in Taggart v. Lorenzen, a case involving alleged violation of a Chapter 7 discharge order, governed civil contempt proceedings for violation of a confirmed reorganization plan under Chapter 11.
“Retail apocalypse” was the phrase coined to describe the anticipated demise of the brick-and-mortar retail store in the face of the unparalleled convenience of online shopping and other electronic commerce. Over the past decade, in response to the challenges faced by the changing retail landscape, many shopping centres tried to “e-proof” their properties by emphasizing in-person experiences that can be provided through salons, arcades, movie theatres and restaurants.
Au début de la pandémie, on craignait que le nombre de dossiers de faillite grimpe de 35 % en 2020 et en 2021. Or, bien que certains secteurs aient été durement touchés, cette crainte ne s’est jamais matérialisée au Canada et aux États-Unis – possiblement en raison des mesures de soutien considérables qui ont été mises en œuvre par les gouvernements. Or, l’avenir ne semble pas tracé pour autant, puisque selon les prévisions d’Allianz Research, les procédures de faillite augmenteront de 15 % en 2022, alors que la croissance économique mondiale affichera un recul d’entre 5,5 % et 6 %.
At the start of the pandemic, insolvency filings were expected to increase by 35% in 2020 and 2021. While some industries were hit hard, this prediction never materialized in Canada and the U.S., possibly because of significant financial government support. The future is less clear, with Allianz Research forecasting, for 2022, a 15% increase in insolvency filings and a 5.5–6% decrease in global economic growth.
Below are five key trends that may impact insolvencies this year, based on data published by the World Bank:
In its top consumer credit law decisions of 2021, the U.S. Court of Appeals for the Fifth Circuit determined that settlement of an FDCPA claim does not trigger an attorney fee award, examined third-party contact as a “communication” under the FDCPA, and ruled there was no “partial surrender” of collateral in a Chapter 13 plan.
Tejero v. Portfolio Recovery Assocs., LLC, 993 F.3d 393 (5th Cir. 2021)
When 2020 ended, many of us were unsure what 2021 would look like from a bankruptcy perspective. Would consumer filings increase? Could we see bankruptcy reform and particularly in the area of discharge of student loans? There was a lot to consider throughout the year. This article will provide some insight as to what we saw and where we may be headed in 2022.
Bankruptcy Filings Down in 2021
Bankruptcy filings through the first 11 months of 2021 were at their lowest levels since the 1980’s.