Adam M. Slavens

In a CCAA proceeding, Synaptive Medical Inc. underwent a reverse vesting transaction where its unwanted assets and liabilities, including the employment contracts of 48 terminated employees, were transferred to ResidualCo.

Synaptive and ResidualCo sought a declaration that ResidualCo is a 'former employer' under the Wage Earner Protection Program Act (WEPPA) so the terminated employees could access WEPPA benefits.

The Attorney General opposed, arguing the employees never provided services to ResidualCo.

The court granted the declaration, finding that under the common employer doctrine and the purpose of WEPPA, ResidualCo qualifies as a former employer, and the court has jurisdiction to make this determination for both CCAA and bankruptcy purposes.

The Applicants sought an Amended and Restated Initial Order in their CCAA proceedings during a 10-day comeback motion.

The requested relief included extending the stay period, approving a Key Employee Retention Plan (KERP) and corresponding charge, appointing a Chief Restructuring Officer, approving financial advisor engagements, and sealing the unredacted KERP.

The court found the relief appropriate and necessary for the restructuring process, noting the support of the Monitor and the majority of secured noteholders.

The motion was granted in its entirety.

The Applicants, operating a fully integrated cannabis business across the United States, sought an Initial Order under the CCAA due to severe liquidity constraints and an inability to meet interest obligations on senior notes.

The court granted the Initial Order, including a 10-day stay of proceedings, which was extended to non-applicant subsidiaries to maintain stability and preserve value for pending sale transactions.

The court also appointed FTI Consulting Canada Inc. as Monitor, authorized the payment of certain pre-filing arrears to critical suppliers, approved Administration and Directors' Charges, granted a limited sealing order for confidential commercial information, and authorized the Parent Company to act as foreign representative for Chapter 15 proceedings in the United States.

In CCAA proceedings arising from a major construction project, the monitor sought an order authorizing release of a contractor-specific holdback notwithstanding the continued construction of the project and the resulting technical inability to satisfy the timing requirements of the construction lien regime.

The court held that s. 11 of the CCAA gave it jurisdiction to deem compliance with statutory preconditions where doing so usefully furthered the remedial objectives of the restructuring, caused no demonstrated prejudice, and preserved the substantive rights of affected stakeholders.

The court also held that it could protect the monitor and CRO from potential personal liability under specified tax statutes for implementing the court-authorized payment, but revised the proposed wording to grant a narrower and more direct liability shield.

The holdback release order was approved with modifications, including removal of an unnecessary overlapping protection.

On a CCAA motion, the moving parties sought approval of a reverse vesting transaction and ancillary relief following a court-approved SISP with a stalking horse credit bid.

The court applied the s. 36(3) criteria and found the process was transparent, adequately marketed, monitor-supervised, and fair and reasonable in the circumstances.

The court accepted the monitor’s evidence that a going-concern outcome would produce materially better stakeholder outcomes than liquidation and would preserve enterprise value while reducing restructuring costs.

Applying the Harte Gold framework, the court held the reverse vesting structure was necessary, economically superior to viable alternatives, non-prejudicial to stakeholders relative to alternatives, and reflective of fair value for preserved intangibles.

The motion was granted and both the Reverse Vesting Order and Ancillary Order were approved.

This decision concerns three motions to approve class counsel fees in the context of insolvency proceedings under the Companies' Creditors Arrangement Act involving three major tobacco companies.

The court approved the Quebec Class Action Plaintiffs' counsel fee request of approximately $901 million (representing 22% of the $4.119 billion allocated to the Quebec class members), the Knight Class Counsel fee request of $5 million plus disbursements, and the Tobacco Producers' counsel fee request of $3.75 million.

The court found that the fees were fair and reasonable given the exceptional risks assumed, the unprecedented outcome achieved, and the unique circumstances of the case.

A $50 million reserve was established from the Quebec counsel fees to protect against any pro-rata reduction in class member compensation due to actual take-up rates or other factors.

This endorsement grants initial relief under the Companies’ Creditors Arrangement Act (CCAA) to Synaptive Medical Inc., a Toronto-based medical device company facing a liquidity crisis and insolvency.

The court finds Synaptive to be a “debtor company” under the CCAA, appoints Richter Inc. as Monitor, approves a stay of proceedings, authorizes DIP financing with Export Development Canada, and grants administration, DIP lender, and directors’ charges.

The decision reviews the statutory and case law criteria for CCAA relief, including the expanded concept of insolvency and the requirements for interim financing and related charges.

This decision sanctions the CCAA Plans of Imperial Tobacco Canada Limited, Imperial Tobacco Company Limited, JTI-Macdonald Corp., and Rothmans, Benson & Hedges Inc., effecting a global settlement of all tobacco-related claims in Canada.

The court reviews the structure, allocation, and fairness of the plans, including the creation of a $1 billion Cy-près Foundation, and addresses objections from social stakeholders.

The court finds the plans fair, reasonable, and in the public interest, and grants the requested relief, including third-party releases and the appointment of plan administrators.

This supplementary endorsement addresses a request from JTI-Macdonald Corp. regarding the adequacy of notice elements in the Claims Procedure Order within the ongoing Companies' Creditors Arrangement Act (CCAA) proceedings.

The court confirmed its satisfaction that the notice elements in the Claims Procedure Orders are reasonable in the circumstances, addressing an oversight from previous submissions.

The Superior Court of Justice addressed multiple motions within the complex Companies’ Creditors Arrangement Act (CCAA) proceedings of JTI-Macdonald Corp., Imperial Tobacco Canada Limited, Imperial Tobacco Company Limited, and Rothmans, Benson & Hedges Inc. The court granted a stay extension until January 31, 2025, and approved Meeting Orders and Claims Procedure Orders.

These orders facilitate the advancement of comprehensive Plans of Arrangement, developed by the court-appointed Mediator and Monitors, aiming for a Pan-Canadian global settlement of tobacco claims totaling $32.5 billion.

The court found the plans were not "doomed to fail" despite outstanding issues regarding financial allocation among the Tobacco Companies and the creditor status of JTI-Macdonald TM Corp.

The bankrupt, a former real estate developer, sought an absolute discharge from bankruptcy.

The discharge was opposed by the Trustee, the Canada Revenue Agency, and several creditors, who argued that the bankrupt's assets were less than 50 cents on the dollar for reasons he could be held responsible for, and that he failed to perform his duties under the Bankruptcy and Insolvency Act.

The court found that the bankrupt had engaged in an asset protection strategy, incurred significant personal liabilities without the means to pay them, and failed to disclose his true post-bankruptcy lifestyle and use of a corporate credit card.

The court declined to refuse the discharge entirely but imposed a substantial conditional order requiring the bankrupt to pay $960,000 and fulfill various outstanding duties.