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Bankruptcy and Insolvency

BUSINESS - Bankruptcy and Insolvency

Among the firm's many significant cases in this area are the following:

  • We acted on a leading case concerning the evidentiary threshold that a creditor must meet to obtain an order under section 41(11) of the Bankruptcy and Insolvency Act reappointing a trustee in bankruptcy to complete the administration of the estate of a discharged bankrupt. Re Cogan (2005), 74 O.R. (3d) 223 (S.C.J.), aff'd (2005), 13 C.B.R. (5th) 43 (Ont. C.A.).

  • We represented the Senior Financial Creditors (holding $3 billion of debt) in Air Canada's restructuring under the Companies' Creditors Arrangement Act. This is the leading case on the enforceability of subordination covenants under bankruptcy and insolvency law. Re Air Canada [Subordinated Debt] (2004), 2 C.B.R. (5th) 4 (Ont. S.C.J.).

  • We were national counsel to Deloitte & Touche Inc. under the Winding-up and Restructuring Act on the winding-up of the first charitable corporation to be liquidated in the Commonwealth to pay tort claims. This case led to many significant reported decisions throughout Canada on the rights and duties of liquidators, the proper way to value tort claims under insolvency principles and the enforceability of insolvency orders throughout Canada.

  • We represented the unsecured creditors' committee on one of the first cross-border (Canada-United States) insolvency hearings and the first one to use closed-circuit satellite TV.

  • One of our lawyers represented Sun Life Assurance Company of Canada on one of Ontario's leading cases on the inherent equitable jurisdiction of the court to give a mortgagee in possession's right to receive occupancy costs priority to the claims of secured creditors. Bulut v. Brampton (City) (2000), 48 O.R. (3d) 108 (C.A.), leave denied (2000), 142 O.A.C. 399 (S.C.C.).

  • One of our lawyers represented Sun Life Assurance Company of Canada on its challenge to a municipality's claim to be a "secured creditor" for unpaid taxes. This is the leading case determining that the Ontario Municipal Act cannot give priority to municipal taxes under the Bankruptcy and Insolvency Act. Brampton (City) v. Sun Life Assurance Co. of Canada (1999), 43 O.R. (3d) 594 (Ont. C.A.) (sub nom. Re Everingham Brothers Ltd.).