Real Time Insolvency Litigation, TCT Logistics Inc., and the Need for Certainty
|Area||Corporate Restructuring, Litigation|
Article originally published in Thomson Carswell's 2005 Annual Review of Insolvency Law
Excerpt from "Real Time Insolvency Litigation, TCT Logistics Inc., and the Need for Certainty":
In January of 2002, TCT Logistics Inc., and its related companies (collectively, TCT) became insolvent and, as can be expected, diverse parties raced to protect their interests. TCT's principal lender went to bankruptcy court to seek the appointment of an interim receiver. The interim receiver operated TCT's business and was able to conclude several court-approved, going concern sales of operating units. Late in the receivership process, a union representing a small group of TCT's employees sought to commence proceedings before a provincial labour board to have the interim receiver declared to be a successor employer. Such a declaration would have saddled the interim receiver with unexpected liabilitites that could have thrown into doubt the whole rationale of TCT's receivership process.