No one likes the endless trailers and advertisements that precede the main feature at movie theatres these days. But some in the audience might have preferred more ads to the fare on offer at a recent screening of the latest Avenger movie. ABC News reports that Chinese authorities now shame debtors and defaulters who owe money to the state by projecting their names and faces on the screen at movie theatres.
Chinese debtors face public shaming - at the movies
Bill C97
On April 8, 2019, the federal government introduced Bill C 97, An Act to Implement Certain Provisions of the Budget Tabled in Parliament On March 19, 2019 and Other Measures, which includes proposed amendments to the Bankruptcy and Insolvency Act, as well as the Companies' Creditors Arrangement Act.
Trustee's disallowance of claim a reminder to creditors to take proofs of claims seriously
A recent decision of the Supreme Court of BC took issue with a bankruptcy trustee's investigation of a proof of claim, but also serves as a reminder that creditors need to take the proof of claim process seriously, particularly where there is any complexity to their claim, or else they risk unneeded cost and inconvenience.
Prepayment penalties in loan agreements
Loan agreements will often have fixed repayment terms. In some cases, it is in the lender's interest to delay the repayment of the loan, usually in order to take advantage of a high interest rate. In order to guarantee the payment of interest at the high rate for the whole of the projected term, the loan agreement may contain a prepayment provision. Under such provision, even though early payment may be allowed, the lender will be entitled to recover the amount of interest that would have otherwise been payable over the term of the loan.
Passive Participation in a Fraud can Still Result in Criminal Sanctions
One doesn't have to be the master mind of a fraud in order to face criminal charges and sanctions for it later. In the case of R. v Roberts, 2019 BCSC 338, Mr. Roberts was charged with fraud over $5,000 for participating in a fraud on Scotiabank, wherein Scotiabank lost approximately $6M. Mr. Roberts was the office manager of Aggressive Road Builders ("ARB") and he knowingly provided documents to Scotiabank that contained false information so that Scotiabank would approve a $7M operating line of credit for ARB that would pay out ARB's then operating line of credit with the Royal Bank.
Third major tobacco company takes creditor protection
On March 22, 2019, Rothman, Benson & Hedges was granted protection from its creditors in Ontario proceedings under the Companies' Creditors Arrangement Act (CCAA). These proceedings will give RBH an opportunity to propose some plan of arrangement which its creditors will then vote on.
Priority of Receiver's Charge for Fees and Disbursements
A fundamental term in the "standard" receivership order is the provision granting the receiver a super priority for its fees and disbursements over the interests of secured creditors of the debtor.
Landlord rights in bankruptcy: Trustee's disclaimer of lease eliminates claim for unsecured damages
Where a tenant is in breach of a commercial lease, a landlord generally has the option to sue the breaching tenant for the unexpired portion of the lease (subject to the landlord's duty to mitigate). However, where a tenant goes bankrupt, the bankruptcy trustee has the power to disclaim the lease under section 30(1)(k) of the Bankruptcy and Insolvency Act ("BIA"). To the surprise of some landlords, this disclaimer will extinguish any right of the landlord to the unexpired term of the lease, save for a preferred three months' accelerated rent claim pursuant to section 136(1)(f).
Home renovations down again last quarter
As another sign of Canada's cooling real estate market, home renovations are in a significant decline. Recent Bank of Canada data show total renovation debt held by banks is down again for the last quarter of 2018. The most recent high for total renovation debt, $3,610,000, came in the second quarter of 2016, and the figures have declined almost 18% since then.
Late Filing of Proof of Claim in Bankruptcy
In order for a creditor to participate in a dividend in a bankruptcy, the creditor must file a proof of claim and have that proof of claim accepted by the trustee in bankruptcy.
