Planes, Leaves and Appeals: Appeals Under Section 193(c) of the Bankruptcy and Insolvency Act
“An appeal”, explained one of my law school professors as he stretched out his arms, “is like taking off in a plane. Unless you understand the rules of physics, you won’t get the plane off the ground, no matter what grade of jet...
Receiver v. Lessor: Who Gets the Equipment? Limitations on Property Under a Receiver’s Control
Court appointed receivers commonly assume control over all of a debtor’s property. In assuming that control, the receiver may collect various pieces of the debtor’s leased equipment, and include that equipment in a sale of the debtor’s assets. Further, the...
Canadian Lender Defeats Environmental Claim
One of the most vexing commercial insolvency issues is the competition between creditors with security on environmentally troubled property and environmental authorities looking for deep pockets to fix the environmental problems. From a creditor’s point of view, a recent Alberta decision...
Case Summary: Krayzel Corp. v. Equitable Trust Co., 2016, S.C.C. 18 (released 2016-05-06)
This is the first decision of the Supreme Court of Canada to assess whether “incentive rates” (i.e., where the interest rate secured by a mortgage is reduced if the mortgagor does not default) violate section 8 of the Interest Act,...
Brexit: Ripples on This Side of the Pond
Introduction Sometimes, I sit and wonder if the Clash saw this one coming back in 1981. In recent months, Brexit, that is the possible exit of the United Kingdom (“UK“) from the European Union (“EU“), has been making headlines worldwide....
A Canadian Banking Lawyer’s Perspective on EBITDA Add-Backs
Introduction The financial crisis put a much greater emphasis on robust regulation of the banking sector. Leveraged lending practices, in particular, were put under a microscope. Human nature is such that, when confronted with strict rules, we are invariably prompted...
Legal Strategies for Financial Institution Cybersecurity and Minimizing Risks
IT infrastructure, including data management and telecommunications, is becoming the nervous system, if not the brain, of many companies. The failure, interruption or security breach of this infrastructure, can have catastrophic business implications to financial institutions. With proper legal due...
Monetary Claims
Highlights A new regime for security over monetary claims came into force January 1, 2016. A “monetary claim” is (i) a claim for payment solely in money that (ii) is owed to the debtor by its creditor or a third party....
Stopping the Revolution in its Tracks: The Supreme Court of Canada Decides Lemare Lake Logging Ltd. v. 3L Cattle Company Ltd.
On November 13, 2015, the Supreme Court rendered its decision in Lemare Lake Logging Ltd. v. 3L Cattle Company Ltd. (2015 SCC 53) (“Lemare Lake”). Read the Court’s decision. The majority overruled the Saskatchewan Court of Appeal decision, which we wrote about...
An inside look into the recent amendments to the Ontario PPSA Location of the Debtor Rules
On December 31, 2015, amendments (enacted in 2006) to the conflicts of law rules in the Ontario Personal Property Security Act (“PPSA”) will be proclaimed into force. In order to perfect security in certain types of collateral, these new rules...
