Gehlen Dabbs Lawyers
Call Us
T: 604 642 6422
Call Us : 604 642 6422
Main navigation

November 2019

Second Cryptocurrency Exchange under Court Protection in Canada

Einstein Exchange Inc. joins QuadrigaCX as the second cryptocurrency exchange to fall under court protection in 2019. In early February, 2019, the Quadriga group sought protection under the Companies’ Creditors Arrangement Act (the “CCAA”) following the death of the founder, Gerald Cotton. Mr. Cotton had sole responsibility for the wallet storage protocols and wallet passwords for Quadriga’s cryptocurrency inventory. When he died...

Changes to Canada’s insolvency laws now in effect

Amendments to the Bankruptcy and Insolvency Act (“BIA”) and the Companies’ Creditors Arrangement Act (“CCAA”) Came into effect on November 1, 2019. As of the publishing of this article, these changes are not yet reflected on the Department of Justice website, or on CanLII. However, it is important for debtors, creditors, and others to be aware of...

Creative lending arrangements can have unintended consequences

Lenders sometimes charge an “interest rate” that varies with the profits of the borrower’s business. So, rather than an interest rate of 5% per annum of the principal amount, the rate of return might be 5% of the borrower’s before-tax profit for that year. This can be attractive to the lender, as it gives them a share in the borrower’s “upside” if the business does well. (What about the “downside” of the business not doing well?

contact us today

Submit button