Canada—foreign main proceeding versus foreign non-main proceeding
Produced in partnership with Kevin McElcheran, Commercial Dispute Resolution, Heather Meredith, McCarthy Tétrault LLP and Kelly Peters, Blake, Cassels & Graydon LLP

The following Restructuring & Insolvency practice note produced in partnership with Kevin McElcheran, Commercial Dispute Resolution, Heather Meredith, McCarthy Tétrault LLP and Kelly Peters, Blake, Cassels & Graydon LLP provides comprehensive and up to date legal information covering:

  • Canada—foreign main proceeding versus foreign non-main proceeding
  • Determining whether a foreign proceeding is a ‘foreign main proceeding’ or a ‘foreign non-main proceeding’
  • Effect of recognition of foreign main proceeding
  • Mandatory relief
  • Discretionary relief
  • Effect of recognition of foreign non-main proceeding
  • Canadian experience with foreign main proceedings and non-main proceedings

Canada—foreign main proceeding versus foreign non-main proceeding

Determining whether a foreign proceeding is a ‘foreign main proceeding’ or a ‘foreign non-main proceeding’

If the court is satisfied that a proceeding is a ‘foreign proceeding’ and the applicant is a ‘foreign representative’, it is required to make an order recognising the foreign proceeding in Canada (section 270(1) of the Bankruptcy and Insolvency Act, R.S.C. 1985, c.B-3 (BIA 1985), and section 47(1) of the Companies’ Creditors Arrangement Act, R.S.C. 1985, c.C-36 (CCAA 1985)). In doing so, the court must specify in the order whether the proceeding is a ‘foreign main proceeding’ or a ‘foreign non-main proceeding’ (BIA 1985, s 270(2); CCAA 1985, s 47(2)).

Both of these terms are defined under BIA 1985, s 268(1) and CCAA 1985, s 45(1) respectively, and the definitions are substantially the same in both statutes:

  1. ‘foreign main proceeding’ means a foreign proceeding in a jurisdiction where the debtor company/debtor has the centre of its/the debtor’s main interests, and

  2. ‘foreign non-main proceeding’ means a foreign proceeding other than a foreign main proceeding

The central inquiry for determining whether a foreign proceeding is a foreign main proceeding or a foreign non-main proceeding is the location of the centre of the debtor’s main interest (COMI). A foreign proceeding is:

  1. a foreign main proceeding if the COMI of the debtor company is in the jurisdiction in which the

Popular documents