The Insolvency Laws of Canada
Susan M. Grundy, Amanda B. Kushnir, Linc A. Rogers and Nicholas J. Hayduk
Price: $95.00 278 pages. 1 Hardcover Volume. Index. Published June 2006.
ISBN-13: 978-1-57823-214-7 / ISBN-10: 1-57823-214-7
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About the Authors
About the General Editors
Preface
I. OVERVIEW OF CANADIAN BANKRUPTCY AND INSOLVENCY LAWS
A. Introduction
B. Terminology
C. General Overview
II. FORMS OF BUSINESS ENTITIES AND OBLIGATIONS
A. Business Entities
1. Types of Business Entities
a. Corporations
b. Unlimited Liability Corporations
c. Partnerships
d. Sole Proprietorships
2. Eligibility for Relief under Bankruptcy and Insolvency Law
B. Obligations
1. Unsecured Obligations
a. Creation of Unsecured Obligations
b. Enforcement
c. Threat of Bankruptcy
d. Costs
e. Exempt Assets of the Debtor
f. Foreign Unsecured Creditors
2. Secured Obligations
a. General Overview
b. Collateral Which Can Secure a Business Obligation
c. Creation of Security Interests
d. Registration and Perfection
e. Priority of Security Interests
f. Bank Act Security
g. Limitations Upon the Duration of Security
Interest in Real and Personal Property
h. Liens and Trust Claims
i. Enforcement of Security Interests
j. Effect of Security in Insolvency Proceedings
3. Liens and Deemed Trusts
III. CONSEQUENCES OF INSOLVENCY
A. Definition of Insolvency
B. Obligations of
C. Potential Liabilities of Directors, Management or Shareholders of an
1. Transactions within a Business Group
2. Payments to Creditors
3. Self-Dealing and Fraudulent Conveyances
4. Directors’ Liability for Tax, Employee and Other Claims
a. Wages and Vacation Pay
b. Unpaid Taxes and Source Deductions
c. Environmental Liability
d. Pension Plans
D. Liabilities Imposed on Lenders
1. Liabilities Related to Lender Actions
2. Lender Control Liabilities
IV. OUT OF COURT PROCEDURES
A. Private Enforcement of Security
B. Private Compromises
V. REHABILITATION PROCEDURES
A. Overview of Canadian Rehabilitation Procedures
B. Commencement of Proceedings
1. Commencing Rehabilitation Proceedings
a. Companies’ Creditors Arrangement Act
b. Bankruptcy and Insolvency Act
2. Initiation of Proceedings by Creditors
3. Requirements for the Initiation of
Rehabilitation Proceedings
4. Dismissal of Proceedings
5. Timing of Relief
6. Time Limitations
C. Effect of Commencement of a Rehabilitation Proceeding
1. Protection from Creditor Action
2. Lifting the Stay of Proceedings
3. Effect of Stay on Liens, Injunctions, etc.
4. Creditor Action Affected by the Stay
a. CCAA
b. Proposal
5. Effect of Proceedings on Accrual of Interest
D. Administration of the Proceedings
1. The Court
2. Appointment of a Monitor or Trustee
3. Government Agencies
4. Secured Creditors
5. Unsecured Creditors
6. Financing
E. The Debtor’s Estate
1. Creation of the Estate
2. Consolidating Proceedings
3. Effect of Proceedings on Contracts
F. Augmentation of the Estate
G. Recognition of Claims and Distribution of Property
1. Asserting and Filing Claims
2. Distributions to Foreign Creditors
3. Priorities
4. Participation of Foreign Creditors in Rehabilitation Proceedings
5. Enforceability of Guarantees of Affiliated Entities
6. Subordination of Claims of Affiliates
H. Rehabilitation Plan
1. Requirements and Types of Plans
2. Creditor Classification and Approval of the Plan
3. Court Approval of the Plan
I. Failure of Rehabilitation
J. The Effect of Approval of a Plan
1. Effect of the Proceedings
2. Obligations of the Debtor Under the Plan
3. Termination of the Proceedings
4. Length of Proceedings
VI. LIQUIDATION PROCEDURES
A. Overview of Liquidation Procedures and Comparison to Rehabilitation Procedures
B. Commencement of Proceedings
1. Initiation of Bankruptcy by Creditor
2. Disputed Petitions
3. Voluntary Assignment in Bankruptcy
4. Length of Proceedings
C. Effect of Commencement of Bankruptcy Proceedings
1. Stay of Proceedings
2. Liens, Injunctions, Garnishments, etc.
3. Accrual of Interest
D. Administration of the Proceedings
1. The Court
2. Appointment of a Trustee
a. Duties and Powers of the Trustee in Bankruptcy
3. Secured Creditors
4. Unsecured Creditors
a. First Meeting of Creditors
b. Inspectors
c. Unpaid Suppliers
5. Financing
E. The Debtor’s Estate
1. Creation of the Estate
2. Consolidated Estates
3. Effect of Proceedings on Contracts
F. Augmentation of the Estate
1. Fraudulent Conveyances and Preferences
a. Preferences
b. Fraudulent Conveyances
c. Settlements
d. Reviewable Transactions
2. Payment of Dividends and Redemption of Shares
3. Oppression Remedy
4. Bulk Sales Legislation
G. Recognition of Claims and Distribution of Property
1. Asserting and Filing Claims
2. Foreign Creditors
3. Scheme of Distribution
H. Conversion of Liquidation to Rehabilitation
I. Termination of Liquidation Proceedings
J. Liquidation under the Winding-Up and Restructuring Act (“WURA”)
VII. EXTRATERRITORIAL JURISDICTION/ ENFORCEABILITY
A. Recognition of Foreign Insolvency Proceedings
B. Foreign Estate Representatives
1. Standing
2. Ancillary Proceedings
C. Enforcement of Foreign Judgments and Court Orders
1. Considering Enforcement of a Judgment of a United States Court
2. Factors a
3. Application of Substantive Foreign Law
4. Enforcing
5. Foreign Debtors and Lenders
6. Foreign Liens and Security Interests
D. Extraterritorial Effects of Domestic Bankruptcy Proceedings
Appendices — Statutory Provisions
A. Schedule A: Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3
1. Division I: General Scheme for Proposals
2. Division II: Consumer Proposals
B. Companies’ Creditors Arrangement Act, R.S.C. 1985, c. C-36
C. Personal Property Security Act, R.S.O. 1990, c. P-10
D. Mortgages Act, R.S.O. 1990, c. M.40
Index