After the expiration of the “usual” six month redemption period in a foreclosure action in British Columbia, the mortgagee will generally apply for an order for conduct of sale with respect to the subject property. However, where the mortgagor believes that the subject property has ample value to satisfy the mortgagee’s claim, the mortgagee may apply for an extension of the redemption period.
The security granted to lenders and other creditors almost always provides for the appointment of a receiver: an agent of the creditor with the power to take over the property and business charged by the security, often with the purpose of arranging a sale.
Suppliers deemed to be critical to the survival of an insolvent business can be compelled to continue supplying, even over their objections. In a recent British Columbia decision, Soccer Express Trading Corp. (Re), Adidas Canada was ordered to continue selling inventory to their struggling customer, a retailer and wholesaler of sporting equipment, apparel and related items.
Not completely surprisingly, Covid-19 has created increased financial challenges for many Canadian companies and statistics show that they are increasingly seeking creditor protection in the hope of being able to weather the storm.
Two recent decisions involving renewal of a judgment against a bankrupt highlight the fact that a bankruptcy does not necessarily extinguish a judgment...
The impacts of Covid-19 have been felt in most aspects of life in Canada and insolvency proceedings are no exception. Generally, where general procedures have required people to gather together or even be in each other’s presence, new laws have been introduced...
In a sign of the continuing disruption in Canada’s retail landscape, Reitmans Canada Ltd. was recently granted creditor protection in Quebec proceedings under the federal Companies’ Creditors Arrangement Act...
Cannabis-related businesses continue to struggle. Last week Destiny Bioscience Global Corp., an Alberta research and development company focused on the genetics and cultivation of cannabis, was placed in receivership by its main lender...
BC's biggest chain of fitness clubs has joined the growing list of businesses unable to survive the "medically-induced coma" which the COVID-19 pandemic has forced on the economy. SNFW Fitness B.C. Ltd., which brought together the Fitness World and Steve Nash Sports fitness clubs, and also operated several "UFC Gym" facilities...
Question: It seems likely that my business will fail, given the COVID-19 recession we’re in. Fortunately, the business was carried on through a corporation, but as a director do I face any personal exposure despite incorporation?
The legal cannabis industry is a relatively new addition to the Canadian economy since its introduction in November 2018. Until December 2019 there had been very few insolvency proceedings commenced by cannabis companies but 2020 has seen at least 6 such insolvency proceedings ranging from receiverships to BIA proposal proceedings to CCAAs. With the onslaught of the COVID-19 pandemic...
This article looks at how corporations can avoid bankruptcy through the Companies' Creditors Arrangement Act (CCAA).
All distributions made out of a bankrupt estate are subject to a 5% levy payable to Superintendent of Bankruptcy pursuant to section 147 of the Bankruptcy and Insolvency Act. Generally, this does not impact secured creditors, whose rights are largely unaffected in bankruptcy. However, in Superintendent of Bankruptcy v Business Development Bank of Canada, 2019 MBCA 72, the Manitoba Court of Appeal recently confirmed that in certain circumstances, even a secured creditor's recovery can be subject to the levy.
A trustee in bankruptcy has special powers to investigate the affairs of a bankrupt estate, and among the greatest of those powers is the ability to review and potentially unwind transactions prior to bankruptcy under section 95 and 96 of the Bankruptcy and Insolvency Act ("BIA").
China modernized its bankruptcy laws for corporations back in 2007, enacting a legislative scheme similar to that of western nations, including the power to restructure insolvent corporations and avoid outright bankruptcy in certain situations.
A transfer of a car to a family member, within one year of the transferor's bankruptcy. Such transactions are regularly set aside in bankruptcy. Even where the transfer was on account of a previous debt owed to the family member, such a transfer would normally be an invalid "preference" under s. 95 of the Bankruptcy and Insolvency Act.
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.
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).
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.
In a long-awaited decision, the Supreme Court of Canada has overturned the Alberta Court of Appeal, and determined that a bankrupt company does not have carte blanche to ignore its environmental obligations.
Mark Twain said, "If you tell the truth you don't have to remember anything." That wisdom was driven home in the recent Ontario case McGoey (re), in which a bankrupt tried to prove that two properties registered in his name were actually held by him in trust for someone else, and therefore were not available to his creditors. He produced two trust deeds showing this.
A recent case out of the Ontario Supreme Court, Re Aeropostale Canada Corp. (Notice of Intention) 2018 ONSC 1468, examined the question of whether a court ordered assignment of a commercial lease pursuant to s. 84.1 of the Bankruptcy and Insolvency Act (R.S.C., 1985, c. B-3) (the "BIA") would include all terms of the lease, including those limited to the original lessee under the lease who was now bankrupt.