Part 1
Without question, the top story over the last year has been the COVID-19 pandemic and its tremendous ongoing effects felt across Canada and the world.
This time has had a significant impact on Canada’s energy industry and many of the changes and developments that took place in 2020 will continue to influence trends, business decisions and the future growth of Canada’s energy industry in 2021.
In the recent decision in PricewaterhouseCoopers Inc. v Perpetual Energy Inc., 2021 ABCA 16 (Perpetual Energy), the Alberta Court of Appeal has reversed the Honourable Justice D.B. Nixon’s decision, striking out or summarily dismissing claims by PricewaterhouseCoopers Inc. in its capacity as trustee in bankruptcy (the Trustee) of Sequoia Resources Corp. (Perpetual/Sequoia).
Obtaining a County Court Judgment (CCJ) is the first step in enforcing a debt against the debtor. Once a CCJ has been obtained, the judgment creditor will need to take the necessary steps to enforce their Judgment to recover the monies owed to the judgment creditor, unless the debtor pays the full judgment debt after receiving the judgment. During COVID-19, the Government has put legislation in place to protect people from being affected by the consequences of their debts.
The imperative “justice, justice shall you pursue” is nowhere better illustrated than in the application of deadlines to perform an act, including filing dates, limitations dates, due dates for filing appeals, and deadlines for filing claims. Courts sometimes exercise their equitable jurisdiction rather than follow the literal language of rules of procedure.
In 7636156 Canada Inc. (Re)[1], the Ontario Court of Appeal ("OCA") confirmed the right of a commercial landlord to draw on a letter of credit given as security pursuant to a lease, even when the draw takes place after the termination of the lease by the tenant's trustee in bankruptcy.
Bottom Line
In its recent decision in Mitchell v. Zagaroli, Adv. Pro. No. 20-05000, 2020 WL 6495156 (Bankr. W.D.N.C. Nov. 3, 2020), the Bankruptcy Court for the Western District of North Carolina held that the Chapter 7 trustee could step into the shoes of the IRS and utilize the IRS’ longer look-back period to avoid fraudulent transfers.
What Happened?
On Monday, 7 December, the Irish High Court affirmed the appointment of an examiner, Kieran Wallace of KPMG, to a number of companies in the Norwegian Air Group (“Norwegian”) as well as the Oslo based parent company of the group, Norwegian Air Shuttle ASA (“NAS”). The appointment of the examiner will provide Norwegian with critical protection from its creditors for a period of approximately 100 days. This article briefly outlines some aspects of the examinership process and what it entails for Norwegian’s creditors.
While COVID-19 may have helped some businesses, such as food delivery services and internet retail shops, many other businesses have struggled to generate any income during the pandemic. Not only restaurants, but also fitness centers, bowling alleys, and similar businesses have been required to shut down or operate at reduced capacity.
In the landmark case of Re China Huiyuan Juice Group Limited [2020] HKCFI 2940, Mr Justice Harris recalibrated the Hong Kong winding-up jurisdiction and its application to an offshore incorporated, Hong Kong-listed entity.
In particular, the decision explains why the Hong Kong court may be unable to wind up an offshore incorporated, Hong Kong-listed company where all of the company’s operating assets are in the Mainland.
The material facts