On January 29, 2020, the Alberta Court of Appeal (the “Alberta CA”) released its decision in PricewaterhouseCoopers Inc. v Perpetual Energy Inc.¹ (“Perpetual Energy”), granting applications requiring a trustee in bankruptcy (the “Trustee”) to post security for costs on appeals brought by the Trustee.

The Quebec Court of Appeal’s unanimous decision in Gestion Éric Savard¹ reaffirms the super-priority ranking of CCAA² DIP financing³ over regular unpaid post-filing obligations, absent steps being taken to reverse this usual order of priorities.

In 7636156 Canada Inc. v. OMERS Realty Corporation¹ (“7636156 v. OMERS”), the Ontario Superior Court of Justice (Commercial List) (the “Court”) held that a bankrupt’s landlord was only entitled to have drawn down on a letter of credit by an amount equal to the landlord’s priority claim for three months’ accelerated rent, rather than by the full amount of the letter of credit, and ordered that the landlord pay over the excess to the bankrupt’s trustee.

NEW YORK – On Nov. 29, 2016, the plaintiffs, Anna and Guido Nocelli, both citizens of New York, filed an action in the Supreme Court of New York alleging 11 causes of action related to Anna Nocelli’s, alleged asbestos-related disease. The initial complaint named multiple defendants, including the Union Carbide Corp., that were citizens of New York.

On December 3, 2019, the Ontario Court of Appeal (the “OCA”) released its decision in 1732427 Ontario Inc. v. 1787930 Ontario Inc.¹ At issue was a pre-authorized debit payment processed by a supplier after a debtor filed a notice of intention to file a proposal under the Bankruptcy and Insolvency Act (the “BIA”). The motion judge had found this payment to be an exercise of a creditor remedy prohibited by the stay provisions of subsection 69(1) of the BIA.

The Arena Football League (AFL) has filed for Chapter 7 bankruptcy in a Delaware bankruptcy court. The AFL filed its bankruptcy petition a little over a month after suspending all local business operations for its remaining six teams.

Since its inception in 1986, there have been as many as 19 AFL teams in a single season. However, the number of teams dramatically decreased following a Chapter 11 reorganization in 2009. That same year, the league rebranded to Arena Football One.

Previously on Asbestos Case Tracker, we took a look at the successful efforts of certain states to combat manipulation and abuse of the asbestos bankruptcy trust system. These states passed legislation that prevents claimants from being doubly compensated for alleged exposures to asbestos-containing products manufactured, used, or supplied by bankrupt and viable companies.

On November 14, 2019, the Alberta Court of Appeal (the “ABCA”) released its decision in PricewaterhouseCoopers Inc. v. 1905393 Alberta Ltd. (“1905393 Alberta”),¹ dismissing an appeal of an approval and vesting order made in the context of a receivership proceeding.

A recent bankruptcy plan filed by Munilla Construction Management (MCM)–the general contractor for the failed pedestrian bridge at Florida International University (FIU)–paves the way for judicially recognized interpleader-type scenarios allowing insurers to resolve multiple-claimant incidents where there may be insufficient policy limits. On November 15, 2018, the Southern District of Florida Bankruptcy Court agreed to expedite a process that would allow victims of the pedestrian bridge collapse to start receiving compensation payouts following the creation of a victim’s fund.

In Canada v. Canada North Group Inc., 2019 ABCA 314, the Court of Appeal of Alberta (the “ABCA”) upheld the decision of the Court of Queen’s Bench of Alberta (the “Lower Court”), which held that the Companies’ Creditors Arrangement Act (the “CCAA”) permits courts to subordinate statutory deemed trusts in favour of the Crown to court-ordered insolvency priming charges.