Pensions v. DIP charge: the continuing Timminco saga unions’ motion for leave to appeal denied *

Canada - August 27 2012
The law in Canada concerning priorities between the statutory deemed trusts relating to pension plan contributions and certain pension fund shortfalls on the one hand, and court ordered charges in favour of DIP lenders on the other hand has been in a state of flux ever since the decision of the Ontario Court of Appeal (the “OCA”) in Re Indalex.

Co-authors: Steven Golick.

Ontario Court of Appeal upholds extraordinary DIP financing arrangements in CCAA proceedings over objections of majority creditors *

Canada - July 17 2012
In Re Crystallex, 2012 ONCA 404, the Ontario Court of Appeal unanimously upheld unusually broad DIP financing arrangements granted pursuant to section 11.2 of the Canadian Companies' Creditors Arrangement Act (CCAA) despite the vociferous objections of substantially all of Crystallex’s creditors.

Co-authors: Edward A. Sellers, Mary Paterson.

DIP financing rules crystallized: interim DIP financing arrangements approved by the Ontario Court of Appeal *

Canada - July 2 2012
In Re Crystallex, the Ontario Court of Appeal (“Court of Appeal”) unanimously upheld three orders of the Ontario Superior Court of Justice (“OSCJ”) that (1) authorized bridge financing, (2) authorized interim financing pursuant to section 11.2 of the Companies’ Creditors Arrangement Act (“CCAA”) and (3) authorized a management incentive program (“MIP”).

Co-authors: Mary Paterson, Steven Golick.