US-Canada Insolvency Proceedings - Industry Alert
US-Canada Insolvency Proceedings - Industry Alert: Canadian Courts Showing Greater Reluctance to Rubber Stamp US Decisions when Canadian Interests at Stake
Canada is home to hundreds of US multinational subsidiaries, so Chapter 11 bankruptcy proceedings for insolvent American entities regularly affect Canadian-based subsidiaries, their offices and assets. However, no matter how integrated the corporate structure, cross-border insolvency proceedings involve two independent legal systems. Recent trends have seen US debtors attempting to apply US law to Canadian parties and assets, with frustrating results.