Clarity and Confusion: The Supreme Court Decides Indalex
Article originally published in Fall/Winter 2013 edition of Rebuilding Success Magazine
Excerpt from: "Clarity and Confusion: The Supreme Court Decides Indalex":
Insolvency practitioners across Canada had been anxiously awaiting the decision of the Supreme Court of Canada in Re Indalex when it was finally released on February 1, 2013. Would the Court put to rest the major questions that the Canadian insolvency and lending communities had been saddled with by the Ontario Court of Appeal’s decision of April 7, 2011? In the end, the Supreme Court’s decision returned a measure of certainty to the integrity of Court orders under the Companies’ Creditors Arrangement Act (Canada) (“CCAA”), especially with regard to super-priority charges. However, the complicated ruling also left us with unanswered questions and little guidance for addressing new considerations in relation to defined benefit pension plans, particularly with respect to lending practice and corporate governance.
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