Gowling WLG's finance litigation experts bring you the latest on the cases and issues affecting the lending industry.

This article was first published on the Practical Law website and in the PLC Magazine in June 2016.

Challenger banks, which are set up to compete with the larger traditional banks, have seen rapid growth in the wake of increased openness to change in the banking sector and a desire for more consumer choice. Their clever targeting of niche markets is opening up plenty of scope for growth. While this opportunity does not come without difficulties, the rewards for challenger banks that succeed can be considerable.

36979  Darin Andrew Randle v. Her Majesty the Queen

(B.C.)

Criminal law – Evidence – “Mr. Big” confessions

In a pivotal decision released May 19, an Alberta court ruled in favour of Grant Thornton Limited, the Receiver and Trustee in the Redwater Energy Corporation (Redwater) receivership and bankruptcy proceedings, upholding its right to disclaim Redwater’s non-producing oil wells and sell its producing ones. Gowling WLG served as co-counsel to Grant Thornton throughout the proceedings.

36778   Ad Hoc Group of Bondholders v. Ernst & Young Inc. in its capacity as Monitor et al.

(ON)

Commercial law – Bankruptcy and insolvency – Interest

As solar industry observers will already know, on April 21st, 2016, (the “Filing Date”) SunEdison, Inc. (“SunEdison”) and several of its U.S. and international subsidiaries (the "SunEdison Group") filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code (the “Chapter 11 Proceedings”)in the United States Bankruptcy Court for the Southern District of New York (the “ US Bankruptcy Court”).¹

36728    Enmax Power Corporation, Altalink Management Ltd., in its capacity as general partner of Altalink, L.P., EPCOR Distribution & Transmission Inc. v. Alberta Utilities Commission, Office of the Utilities Consumer Advocate of Alberta

- and between -

FortisAlberta Inc., Altagas Utilities Inc., ATCO Gas and Pipelines Ltd., ATCO Electric Ltd. v. Alberta Utilities Commission, Office of the Utilities Consumer Advocate of Alberta

The Convention on International Interests in Mobile Equipment (the “Convention”) and theProtocol to the Convention on International Interests in Mobile Equipment on Matters specific to Aircraft Equipment (the “Protocol” collectively with the Convention, the “Cape Town Convention”) signed on November 16, 2001 establish a special regime for the protection of certain interests in aircraft objects (within the meaning given to such term in the Cape Town Convention, an “Aircraft Object”), and

Trust claims against a borrower’s assets are something that no secured creditor wants to be confronted with. Such claims are often unexpected because they are, for the most part, undetectable. They lurk in the shadows, out of the reach of traditional due diligence measures and PPSA searches. As a result, even the most prudent of creditors can sometimes find themselves facing these undocumented and unquantifiable claims.

A recent Alberta case1 has addressed the proposed use of a plan of arrangement under theCanada Business Corporations Act (“CBCA”) where proceedings under insolvency statutes may be more appropriate.  In Connacher Oil, Connacher Oil and Gas Limited (“Connacher”) and 9171665 Canada Ltd.