Massimo Carmine Starnino

The applicant corporation sought relief under the Companies’ Creditors Arrangement Act including an initial order, a stay of proceedings, approval of a sale process, and authorization of administration and directors’ charges.

The court considered whether the corporation qualified as a debtor company and whether the requested restructuring steps were appropriate in the circumstances of significant financial distress and ongoing investigations.

The court accepted that the corporation was insolvent and that a restructuring under the CCAA was necessary to preserve enterprise value and explore a potential sale of business operations.

The court approved the requested charges, authorized the sale process, and granted ancillary relief including recognition proceedings in foreign jurisdictions.

The U.K. Pensions Regulator and Pension Protection Fund Trustee appealed an order finding that their service of a Warning Notice breached the stay provisions in the Initial Order under the Companies' Creditors Arrangement Act.

The Court of Appeal dismissed the appeal, agreeing that the service of the Notice was a nullity.

The Court clarified that the order below does not preclude the appellants from seeking to assert a claim in the CCAA process for pension contribution shortfalls.

The appellants, representing unionized and non-unionized former employees of Nortel, appealed a decision dismissing their motions for directions to compel Nortel to pay severance, termination, and retirement benefits during its CCAA restructuring.

The appellants argued that the payments were protected under s. 11.3(a) of the CCAA as compensation for ongoing services, and that the CCAA stay could not override provincial Employment Standards Act obligations.

The Court of Appeal dismissed the appeals, holding that the payments were for past services and that the doctrine of federal paramountcy allowed the CCAA stay to suspend the immediate payment obligations under the provincial legislation to facilitate the restructuring.

The appellant leased truck trailers to a company that subsequently went bankrupt.

A priority dispute arose between the appellant and the bankrupt's secured creditor over the trailers.

The trailers were used in multiple jurisdictions but the debtor was located in Alberta.

The Court of Appeal held that although the lease was a 'true lease' not requiring registration under the Ontario PPSA, the choice of law provisions in s. 7(1) of the Ontario PPSA still applied.

Consequently, Alberta law governed the dispute.

Under the Alberta PPSA, the lease was deemed a security interest requiring registration, and because the appellant registered against the wrong entity, its interest was subordinate to the secured creditor's perfected security interest.

The appeal was dismissed.