Denis Ellickson

The applicant, Zochem Inc., applied under Part IV of the CCAA for recognition of First Day Orders made by the U.S. Bankruptcy Court in Chapter 11 proceedings.

The court found that the U.S. proceeding was a foreign main proceeding, as the debtors were managed as an integrated group from the United States, despite Zochem's operations being in Ontario.

The court also recognized the interim financing order and granted a super-priority charge for the DIP lender, noting that the interim advance was necessary to meet payroll and that the directors must act in the best interests of the Canadian corporation.

The employer sought an interlocutory injunction restricting picketing during a lawful strike at one of its warehouse facilities.

The union’s picketing activities caused substantial delays for vehicles entering and exiting several warehouse locations, effectively disrupting operations despite remaining largely peaceful.

The court applied the interlocutory injunction framework from RJR‑MacDonald and considered the special context of labour disputes and the balance between property access rights and constitutionally protected expressive activity in picketing.

The court held that while employers are entitled to access their property, labour picketing may justify some degree of inconvenience and delay as part of the economic dynamics of a strike.

An injunction was granted permitting continued picketing but limiting the extent of delays in accessing the employer’s facilities.