Marc Steven Wasserman

This application, brought by Hollander Sleep Products, LLC as foreign representative for itself and other Chapter 11 Debtors (including Hollander Sleep Products Canada Limited), sought recognition of US Chapter 11 proceedings as foreign main proceedings under Part IV of the Companies’ Creditors Arrangement Act (CCAA).

The court granted the application, recognizing the Chapter 11 Cases as foreign main proceedings, imposing a stay of proceedings, recognizing certain First Day Orders, granting a DIP ABL Charge, appointing an Information Officer, and approving an Administration Charge.

A key aspect was the determination of Hollander Canada's Centre of Main Interests (COMI) as being in the United States, despite its Canadian registered office, due to its deep integration with the US parent's operations.

The court also approved a DIP ABL Charge with joint and several liability for Hollander Canada and a "creeping roll-up" provision, distinguishing the case from Payless Holdings Inc. LLC, (Re) by noting Hollander Canada's insolvency, the absence of material prejudice to Canadian creditors, and the inclusion of a quasi-marshalling construct.

Her Majesty the Queen in right of Ontario sought to lift a stay on its $330 billion health care cost recovery action against three tobacco companies (JTI-Macdonald Corp., Imperial Tobacco, Rothmans, Benson & Hedges Inc.) and eleven co-defendants, which was imposed under CCAA proceedings.

Ontario proposed to temporarily stay the effects of any judgment.

The court dismissed the motion, emphasizing the need to preserve the status quo in CCAA proceedings to facilitate a global resolution of significant claims.

Allowing Ontario's action to proceed would alter the level playing field, distract from restructuring efforts, and impose significant costs, prejudicing other stakeholders.

The applicants, JTI-Macdonald Corp., Imperial Tobacco Canada Limited, Imperial Tobacco Company Limited, and Rothmans, Benson & Hedges Inc., sought protection under the Companies' Creditors Arrangement Act (CCAA) following a $13.5 billion judgment from the Quebec Court of Appeal and other ongoing litigation.

JTI-Macdonald Corp. and Rothmans, Benson & Hedges Inc. moved for orders to file Supreme Court of Canada (SCC) leave applications but suspend further proceedings.

Imperial Tobacco Canada Limited and Imperial Tobacco Company Limited sought a blanket stay of all proceedings and limitation periods.

The Quebec class action plaintiffs opposed the motions and sought to partially lift the stay.

The court affirmed its broad jurisdiction under CCAA s. 11 to stay all actions, including appellate proceedings and limitation periods.

The court dismissed the motion by JTI-Macdonald Corp. and Rothmans, Benson & Hedges Inc., and granted Imperial Tobacco's motion, finding that a blanket stay best preserved the status quo and facilitated a global resolution for all stakeholders.