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    CRA’s Super-Priority Remains Operative Over Pre-Bankruptcy Payments to Secured Creditor
    2017-11-22

    Secured creditors have taken note and expressed concern regarding a recent decision from the Federal Court of Appeal (the “FCA”), which has upended conventional wisdom regarding the priority and treatment of GST/HST arrears in a bankruptcy. In Canada v.

    Filed under:
    Canada, Company & Commercial, Insolvency & Restructuring, Litigation, Aird & Berlis LLP | Aird & McBurney LP, Secured creditor, Canada Revenue Agency, Federal Court of Appeal (Canada)
    Authors:
    Sean Green
    Location:
    Canada
    Firm:
    Aird & Berlis LLP | Aird & McBurney LP
    Jumping the line: A solicitor’s charging order takes priority over a registered Ontario PPSA security interest
    2017-12-18

    Registering a financing statement under the Ontario PPSA[1] to perfect a security interest is a key means of protecting a secured creditor’s priority over collateral. It is important for secured creditors to be cognizant however that there are situations where other claims that are not subject to traditional registration requirements may still trump a secured creditor’s registered security interest.

    Filed under:
    Canada, Ontario, Insolvency & Restructuring, Litigation, Gowling WLG, Secured creditor
    Authors:
    Samuel Starkman
    Location:
    Canada
    Firm:
    Gowling WLG
    Crown priority under section 222(3) of the Excise Tax Act
    2017-10-31

    We have recently profiled conflicting cases (available here and here) dealing with a priority contest between supe

    Filed under:
    Canada, Insolvency & Restructuring, Litigation, Tax, McCarthy Tétrault LLP, Bankruptcy, Debtor, Excise, Secured creditor, Canada Revenue Agency, Income-Tax Act 1961 (India), Supreme Court of Canada, Federal Court of Appeal (Canada)
    Authors:
    Walker W. MacLeod , Lan Nguyen
    Location:
    Canada
    Firm:
    McCarthy Tétrault LLP
    Recent Developments in Canadian Insolvency Case Law: What Lenders Need to Know
    2017-11-02

    In 2017, a number of insolvency cases were litigated, in various provinces across Canada, which may materially affect the realization and recovery rights of commercial lenders in restructuring and insolvency proceedings. This article summarizes the core issue of importance to lenders in each of these cases and provides an update on their appeal status.

    November 2, 2017 September 11, 2017

    INTEGRITY OF COURT-ORDERED SALE PROCESS

    Squestre de Gestion EGR inc. et Lemieux Nolet inc., syndics de faillite et gestionnaires

    Filed under:
    Canada, Quebec, Insolvency & Restructuring, Litigation, Tax, Blake, Cassels & Graydon LLP, Secured creditor, Debtor in possession, Unsecured creditor, Bankruptcy and Insolvency Act 1985 (Canada), Civil Code of Quebec, Supreme Court of Canada, Federal Court of Appeal (Canada), Quebec Superior Court, Court of Appeal of Alberta, Quebec Court of Appeal
    Location:
    Canada
    Firm:
    Blake, Cassels & Graydon LLP
    Supreme Court of Canada to hear Alberta’s “orphaned” oil wells case
    2017-11-09

    On November 9, 2017, the Supreme Court of Canada granted the Alberta Energy Regulator and the Orphan Well Association’s request for leave to appeal from the decision in Grant Thornton Ltd. v. Alberta Energy Regulator, 2017 ABCA 124.

    Filed under:
    Canada, Energy & Natural Resources, Insolvency & Restructuring, Litigation, Baker McKenzie, Secured creditor, Exclusive jurisdiction, Alberta Energy Regulator, Bankruptcy and Insolvency Act 1985 (Canada), Supreme Court of Canada, Court of Appeal of Alberta
    Authors:
    Michael Nowina , Glenn Gibson
    Location:
    Canada
    Firm:
    Baker McKenzie
    Ontario Court Confirms No Construction Lien Act Deemed Trust in Bankruptcy
    2017-10-26

    In a September 19, 2017 decision from the bench in the matter of Bank of Montreal v. Kappeler Masonry Corporation, et. al.1 (“Kappeler Masonry”), Madam Justice Conway of the Ontario Superior Court of Justice (Commercial List) (the “Court”) confirmed that commingling of construction project receipts in a receiver’s estate account is fatal to a Construction Lien Act (Ontario) (the “CLA”) trust claim in the face of a debtor’s bankruptcy.

    Filed under:
    Canada, Construction, Insolvency & Restructuring, Litigation, Aird & Berlis LLP | Aird & McBurney LP, Bankruptcy, Secured creditor, Royal Bank of Canada, Court of Appeal for Ontario, Ontario Superior Court of Justice
    Authors:
    Sam Babe
    Location:
    Canada
    Firm:
    Aird & Berlis LLP | Aird & McBurney LP
    Alberta Court of Queen’s Bench Reiterates Court’s Discretion to Grant an Interim Financing Charge “Super-Priority” Status in the Face of a Deemed Trust Under the Income Tax Act
    2017-09-27

    This blog’s most recent post considered the Supreme Court of Nova Scotia’s June 2017 decision of Rosedale Farms Limited, Hassett Holdings Inc., Resurgam Resources (Re) (“Rosedale”) where the Cou

    Filed under:
    Canada, Insolvency & Restructuring, Litigation, McCarthy Tétrault LLP, Secured creditor, Canada Revenue Agency, Bankruptcy and Insolvency Act 1985 (Canada)
    Authors:
    Walker W. MacLeod , Audrey Bouffard-Nesbitt
    Location:
    Canada
    Firm:
    McCarthy Tétrault LLP
    Appearances Can Be Deceiving: A Re-Characterization of a Secured Creditor’s Debt Claim as an Equity Contribution
    2017-09-28

    In a recent decision[1], the British Columbia Supreme Court (the “Court”) determined that purported secured loans made by a shareholder were properly characterized as equity contributions to the subject company and therefore subordinate to the claims of the company’s creditors.

    Filed under:
    Canada, British Columbia, Banking, Insolvency & Restructuring, Litigation, Gowling WLG, Secured creditor, British Columbia Supreme Court
    Authors:
    Warren Beil
    Location:
    Canada
    Firm:
    Gowling WLG
    Perfection of security interests when assets move jurisdictions
    2017-05-17

    When a financing statement is registered to perfect a security interest in collateral, it is the responsibility of the secured party to monitor the registration to ensure that a new financing statement is filed if the goods move jurisdictions. A recent decision by the Ontario Superior Court of Justice1 emphasizes this point.

    Facts

    Filed under:
    Canada, Ontario, Banking, Insolvency & Restructuring, Litigation, DLA Piper, Bankruptcy, Debtor, Collateral (finance), Secured creditor, Personal Property Security Act 1990 (Canada), Ontario Superior Court of Justice
    Authors:
    M. Sandra Appel
    Location:
    Canada
    Firm:
    DLA Piper
    A banker asked us: Re-registering PPSA registrations after they have lapsed
    2017-03-30

    Q: I just found out from my back office that the only PPSA registration the bank holds against our borrower expired without having been renewed. Is it possible for the bank to file a late renewal and regain its first priority position against the borrower’s other secured creditors?

    Filed under:
    Canada, British Columbia, Banking, Insolvency & Restructuring, Gowling WLG, Secured creditor
    Authors:
    Matthew E. Mitchell
    Location:
    Canada
    Firm:
    Gowling WLG

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