The BLG Monthly Update is a digest of recent developments in the law which Neil Guthrie, our National Director of Research, thinks you will find interesting or relevant – or both.

The decisions of In the matter of Assta Labels Pty Ltd [2018] NSWSC 1094 (Assta), In the matter of Psyche Holdings Pty Limited [2018] NSWSC 1254 (Psyche and, In the matter of Highlake Resources Pty Ltd [2018] FCA 1292 (Highlake) have added clarity to the factors courts will consider in assessing whether to grant an extension of time for registration on the ‘Personal Property Securities Act 2009 (Cth) (PPSA).

As the volume of high-profile bankruptcies continues to climb, companies are now in the process of seeking to amend and re-negotiate their credit agreements, or finding new sources of financing in efforts to avoid bankruptcy.

The government-imposed restrictions and social distancing practices that have been implemented to combat the spread of COVID-19 have led to significant economic hardships for many businesses, especially those in the retail, hospitality, and personal services industries. Unfortunately, many of these companies have or will become insolvent, and may eventually face bankruptcy. This article will provide an overview of some possible alternatives to bankruptcy that companies should consider if they find themselves in financial trouble.

Bankruptcy vs Insolvency

In the matter of the Companies’ Creditors Arrangement Act (“CCAA”) of the S.M. Group, the Québec Court of Appeal rendered a ruling on the effect of the law of set-off on debts arising out of alleged fraud and the application of the same Court’s ruling in Kitco to this type of debts.

On July 2, 2020, the Court of Appeal for Ontario (the “Court”) released its decision in Hutchingame Growth Capital Corporation v.

While the COVID-19 pandemic has wreaked havoc on the global economic marketplace, not all concerns are immediately visible - such as bankruptcy impacting a business’s intellectual property.

On July 2, 2020, the Court of Appeal for Ontario (the “Court”) released its decision in Hutchingame Growth Capital Corporation v.

In Séquestre de Média5 Corporation, 2020 QCCA 943 (« Media5 »), the Quebec Court of Appeal unanimously held that, in order bring a motion for the appointment of a receiver under s.243 of the Bankruptcy and Insolvency Act (the “BIA”), a secured creditor must not only have given the notice required under s.244 of the BIA, it must also have served the prior notice of the exercise of a hypothecary right required under the Civil code of Quebec (“CCQ”), and both notice periods must have expired.

A recent decision of the Ontario Superior Court of Justice (Commercial List) (the “Court”) in the receivership proceedings of The Clover on Yonge Inc.[1] (the “Clover Project”) has addressed the question of whether a debtor in receivership can avoid a sales process by redeeming its outstanding debt.