Canada—the recognition of foreign insolvency proceedings under the Companies’ Creditors Arrangement Act 1985
Produced in partnership with Robin Schwill and Dina Milivojevic of Davies Ward Phillips & Vineberg LLP

The following Restructuring & Insolvency practice note produced in partnership with Robin Schwill and Dina Milivojevic of Davies Ward Phillips & Vineberg LLP provides comprehensive and up to date legal information covering:

  • Canada—the recognition of foreign insolvency proceedings under the Companies’ Creditors Arrangement Act 1985
  • Overview
  • Commencing foreign recognition proceedings in Canada
  • Appointing an information officer

Canada—the recognition of foreign insolvency proceedings under the Companies’ Creditors Arrangement Act 1985

Overview

An international insolvency proceeding involves a financially-troubled debtor with operations and creditors in more than one country. International insolvencies have the potential to be highly contentious proceedings because a debtor’s international operations may make it difficult to determine where an insolvency should be administered and which country’s laws should govern the proceedings. It may also be the case that initiating separate insolvency proceedings in multiple jurisdictions will create separate and competing legal estates, making global asset sales and proceeds allocation significantly more difficult. This is especially problematic where the treatment of a particular stakeholder group varies significantly from one jurisdiction to another. In such a circumstance, the decision of which country will administer the insolvency may directly impact on the stakeholder’s relative priority vis-à-vis other stakeholders and how much of its debts the stakeholder ultimately stands to recover. Complicating matters further, any order made in the country administering the insolvency

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