Pre-2006, it was always clear that TUPE applied to transfer employees working in a business when it was bought out of administration. However, changes in 2006 provided that the automatic transfer principle would not apply to any transfer of a business or undertaking where the transferor was the subject of bankruptcy proceedings, which had been 'instituted with a view to the liquidation of the assets of the transferor'.
The defendant guaranteed payment of the price of equipment sold by the claimant to the defendant’s subsidiary. The claimant then entered into agreements with the subsidiary and various finance companies under which title in certain of the goods passed to the finance companies in return for payment of part of the relevant purchase price. The subsidiary paid some of the purchase price of the goods, as did the finance companies but the balance remained unpaid when the subsidiary went into liquidation. The claimant claimed on the guarantee and issued proceedings.
Virgin Active has been in the news recently, as it has proposed restructuring plans which rely on the new legislation found in the Corporate Governance and Insolvency Act 2020.
In this insight, we will explain:
In a decision released on March 11, 2020, the Ontario Court of Appeal provided reassurance for those in the construction industry of the effectiveness of section 9(1) of the Construction Act, RSO c C.30 (“CA”) in insolvency proceedings. This decision did not overturn the previous decision rendered in Re Veltri Metal Products Co (2005), 48 CLR (3d) 161 (Ont CA) (“Veltri”); rather, the Court of Appeal distinguished the two cases on the facts.
Retail Company Voluntary Arrangements (CVAs) are becoming an increasingly popular means of minimising liabilities and creating breathing space for tenants during a difficult trading environment on the High Street. Where does this leave landlords?
In our update this month we take a look at some recent decisions that will be of interest to those involved in insolvency litigation. These include:
In an insolvency, the three heads of set-off (contractual, legal and equitable) each represent a powerful means of effectively jumping the queue and circumventing the ordinary priority scheme between a company's secured and unsecured creditors.
APPLICATIONS FOR LEAVE TO APPEAL DISMISSED
37656
Norris Barens v. Her Majesty the Queen (B.C.)
Canadian Charter of Rights and Freedoms – Constitutional law – Mobility rights
The applicant was convicted of driving without a licence contrary to s. 24(1) of the Motor Vehicle Act, R.S.B.C. 1996, c. 318.
The Court of Appeal has confirmed that a company must have a settled intention to appoint an administrator before it can file a notice of intention to appoint and benefit from the interim moratorium that applies as a result. We cover this, and other issues affecting the insolvency and fraud industry, in this month's update:
36778 Ad Hoc Group of Bondholders v. Ernst & Young Inc. in its capacity as Monitor et al.
(ON)
Commercial law – Bankruptcy and insolvency – Interest