Zone of Insolvency

Zone of Insolvency

Category Archives: Canada

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Approval of third-party releases under the CCAA: the court lowers the bar in Aquadis

Posted in Canada
A monitor appointed under the Companies’ Creditors Arrangement Act (CCAA) may commence a claim against third parties in the name of the debtor. The purpose of such a claim is obviously to maximize the value of the debtor’s assets for the benefit of its creditors. In the event the monitor settles a claim with some… Continue Reading

Rolling DIPs vs. Creeping DIPs

Posted in Canada
Has the law changed in Canada based on the September, 2017 decision of Justice Myers of the Ontario Superior Court of Justice in the Toys ”R” Us (Canada) Ltd. case? Section 11.2 of the Canadian Companies’ Creditors Arrangement Act (“CCAA”) allows the Court to create a charge to secure a DIP financing. However, that section… Continue Reading