Goodmans Presents: Indalex Ruling: Appeal Allowed, but Issues Remain for Lending
|Lawyer||Jean Anderson, Brian Empey, David Wiseman|
March 7th, 2013
7:30 am - 8:00 a.m.
8:00 - 9:30 a.m.
David Wiseman, Finance, Goodmans LLP
Jean Anderson, Finance, Goodmans LLP
Brian Empey, Insolvency, Goodmans LLP
Fred Myers, Litigation, Goodmans LLP
Please join our expert panel of leading finance lawyers and counsel on the successful Indalex appeal for a discussion of what this ruling could mean for the business landscape going forward.
A 5-2 ruling of the Supreme Court of Canada on February 1, 2013 reverses a controversial ruling concerning priorities in an insolvency but also leaves much to be discussed concerning the impact of the decision on lending and realization.
The Indalex case was an appeal from an Ontario Court of Appeal decision that had granted pensioners priority recovery from the proceeds of sale of an insolvent business ahead of a Court-ordered priority charge in favour of debtor-in-possession lenders.
The Supreme Court confirmed the DIP lenders’ super-priority under the federal CCAA ranks ahead of the pensioners’ provincial claim and rejected the Court of Appeal’s use of a constructive trust to trump the DIP lenders’ charge.
The Supreme Court also commented on other issues of concern to lenders, including the duties of an employer to its pensioners and whether Ontario's Pension Benefits Act imposes a “deemed trust” for wind-up deficits.
Please join us!