The foreign representative of a Chapter 11 debtor group brought a motion for recognition in Canada of a US Bankruptcy Court confirmation order approving a reorganization plan.
The motion was unopposed.
A group of co-defendants in Canadian opioid litigation sought a bar order (Pierringer-type protection) as a term of the recognition order, which was opposed by a provincial government.
The court granted the recognition order, finding no public policy grounds under s. 61(2) of the CCAA to refuse recognition and that the new plan's consensual-only third-party releases were consistent with Canadian insolvency law.
The court declined to impose the bar order, distinguishing the applicable authorities and holding that the co-defendants' position arose from the plan's releases — not from a prior government stipulation — and that the co-defendants had already received bar order protection in a separate settlement.
