Too often the basic terms in bankruptcy and insolvency law are used incorrectly and in a way which just makes things more confusing. Even professionals can be guilty of this. If on the other hand you understand the terms, then you will quickly understand the process and be able to identify and analyze the issues that may arise.
A monetary claim against the bankrupt, whether liquidated or contingent at the time of bankruptcy, will be dealt with as a claim provable in bankruptcy. However, when the monetary claim is by a regulatory body, unique considerations may apply.
The British Columbia Court of Appeal recently provided insight into how a bankrupt's assets will be valued when determining if they were transferred at less than fair market value.
In a recent case from the Nova Scotia Supreme Court Atlantica Diversified Transportation Systems Inc. (Re), 2018 NSSC 77, the court was asked to determine whether a true lessor of numerous trucks and trailers of the debtor, Canadian Western Bank ("CWB"), was liable to contribute to a $75,000 administration charge ordered in Companies Creditors Arrangement Act ("CCAA") proceedings that ended without a restructuring plan in place.
In a recent decision with broad implications for the real estate industry, the Supreme Court of British Columbia ordered the "disclaimer" of 40 pre-sale agreements in a troubled Langley strata project.