The appellant was the original tenant of commercial leases which it assigned to a subsidiary.
The assignee later became insolvent and repudiated the leases under s. 65.2 of the Bankruptcy and Insolvency Act.
The landlords sued the appellant for outstanding rent under the assignment clause.
The Supreme Court of Canada held that the repudiation of a lease by an insolvent assignee under s. 65.2 benefits only the insolvent and does not relieve the original tenant or assignor of its contractual obligations to the landlord.
