The United States and Canada enjoy a close and extensive relationship
that is unique in the world. The two nations share the world's largest and most comprehensive trading
relationship, with bilateral trade exceeding $565 bilion in 2008. The close relationship is also reflected in
the daily interactions that occur between Americans and Canadians, as approximately 300,000 individuals
cross the world's longest undefended border each day.(1J
It is not surprising that a result of this close social and economic partnership is that American
jurisprudence and legislation have served as the impetus for legal developments in Canada. In the sphere
of Canadian insolvency law, a number of American insolvency law doctrines, such as stalking horse sale
processes, debtor-in-possession (DIP) financing and priming charges, and key employee retention plans
(KERPs) have been incorporated and used in Canada even when no Canadian statutory or common law
authority permits the use or recognition of such doctrines.
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