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Goodmans Presents: Indalex Ruling: Appeal Allowed, but Issues Remain for Lending

March-7-2013

Lawyer Jean Anderson, Brian Empey, David Wiseman

Details

Date:
March 7th, 2013

Schedule:
7:30 am - 8:00 a.m.
Breakfast/Registration
8:00 - 9:30 a.m.
Panel Discussion

Moderator:
David Wiseman, Finance, Goodmans LLP

Panellists:
 

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.

Session Overview

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!