Publications
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Creditors suspected of wishing to eliminate a competitor: The Court refuses to annul their votes against a plan of arrangement
On May 14, 2012, the Honourable Normand Gosselin, J.S.C., ruled on an amended motion seeking the sanction of a plan of arrangement concerning a debtor, Norgate Métal Inc. ('Norgate'). The judgment is special in that Norgate asked the Court to annul some of the votes that had been cast against the (…)
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Superior Court refuses to import Indalex decision into Québec law
On April 20, 2012, Justice Mongeon of the Québec Superior Court rendered an important decision in the restructuring of the White Birch Paper Company (“White Birch”). The judgment could have a lasting effect on CCAA jurisprudence in Québec since it deals with issues relating to the (…)
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The Doorcorp Case: The Court of Appeal renders yet another decision on section 139 BIA and the postponement of claims
Last June we discussed the Court of Appeal decision in Stonehaven Country Club, which dealt with the application of section 139 BIA to a claim by Investissement Québec. The Court of Appeal has ruled on the scope of this section once again.On April 17, 2012, the Honourable Marc Beauregard, writing (…)
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Limits of the deemed trust created under provincial tax legislation
In its judgment in the case of Banque Nationale du Canada v. Agence du Revenu du Québec, 2011 QCCA 1943, issued on October 21, 2011, the Court of Appeal of Quebec discussed two grounds of dispute that might be of interest to the hypothecary creditors of tax debtors when the tax authorities rely on (…)
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Secured or postponed: Where does the secured lender who shares?
On April 4, 2011, the Honourable Benoît Morin, speaking for the Court of Appeal, with Justices Michel Robert and Jacques A. Léger concurring, issued a judgment confirming the decision of the Superior Court rendered on April 22, 2009 by the Honourable Jean-Yves Lalonde. The case arose out of the (…)
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BIA: Equity claims in proposals – A look at new section 54.1 BIA
On October 28, 2010, Justice Yves Poirier of the Quebec Superior Court rendered a decision, which enforced the application of new section 54.1 of the Bankruptcy and Insolvency Act. The case, Aliments Möpure inc. (Avis d’intention et de proposition de) (“Möpure”), addressed the (…)
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CCAA: Bet on the right horse – the “stalking horse” in Quebec
The case of the arrangement respecting White Birch Paper (the “White Birch Group”) was one of the most significant matters brought before the Commercial Division of the Superior Court of Quebec in 2010. Not only did this matter receive a lot of attention on account of its crossborder (…)
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CCAA: The use of credit bids at an auction is scrutiniezed by Quebec Courts
In a recent decision of the Court of Appeal, the Honourable Pierre J. Dalphond confirmed that a secured creditor may use its debt to acquire the assets which are charged with its security interests in the context of a sale process monitored by the Court under the Companies’ Creditors (…)
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Bitter Bidder Bites the Dust
On May 3, 2010, Justice Clément Gascon of the Superior Court rendered an interesting decision in the context of a motion for authorization of the sale of assets in connection with a restructuring under the Companies' Creditors Arrangement Act.More specifically, the Court considered the fairness of (…)
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Plan of Arrangement Under the CCAA or Assignment in Bankruptcy Under the BIA: Which Takes Priority?
Which group of creditors is entitled to the money held by a monitor for the purposes of carrying out a plan of arrangement under the CCCA when the debtor goes bankrupt prior to the distribution: only the creditors covered by the plan of arrangement, or all of the creditors, even those not covered by (…)
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Legal Hypothecs of Construction get Priority over a Super Priority Granted by the Court for dip Financing in Respect of Certain Assets of the Bankrupted Party
Creditors petitioned the Court in order to have it amend the order of priority for payment determined by the trustee, so that their claims have priority over the super priority of the Caisse Populaire, but strictly in respect of part of the assets.
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The Interpretation of a Progress Payment by a Bankruptcy Judge Sitting in the Province of Quebec
This publication was authored by Luc Thibaudeau, former partner of Lavery and now judge in the Civil Division of the Court of Québec, District of Longueuil. A recent Superior Court decision deals with a Progress Payment Agreement and a Master Lease Agreement between a financing company, Maximum (…)