COVID-19

In trying to respond to the extraordinary circumstances of the Covid-19 pandemic, the court has had ample opportunity to utilize its inherent jurisdiction in the interests of justice. In Durham Sports Barn Inc. Bankruptcy Proposal 2020 ONSC 5938, the court used its inherent jurisdiction to extend the time that a debtor has to make a proposal to its creditors under s. 50.4(9) of the Bankruptcy and Insolvency Act ("BIA&").

In the last week three more well-known retailers have been forced to seek creditor protection amid the pandemic-related shrinkage in consumer spending. Geox Canada, a shoe and clothing retailer with 30 stores, has seen its sales for the first half of 2020 drop to half that of 2019. Its restructuring under the Bankruptcy and Insolvency Act will focus on store closings and stronger e-commerce.

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.

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.

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...

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...

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...

Question: I’ve heard the courts are closed during the COVID-19 crisis. Can anything be done to help my business?

Question: We've downsized our business to weather the COVID-19 crisis, including laying off staff, but what can we do about the rent owing on our lease?