2 total
ResidualCo in a CCAA reverse vesting transaction declared a former employer for WEPPA benefits.
In a CCAA proceeding, Synaptive Medical Inc. underwent a reverse vesting transaction where its unwanted assets and liabilities, including the employment contracts of 48 terminated employees, were transferred to ResidualCo.
Synaptive and ResidualCo sought a declaration that ResidualCo is a 'former employer' under the Wage Earner Protection Program Act (WEPPA) so the terminated employees could access WEPPA benefits.
The Attorney General opposed, arguing the employees never provided services to ResidualCo.
The court granted the declaration, finding that under the common employer doctrine and the purpose of WEPPA, ResidualCo qualifies as a former employer, and the court has jurisdiction to make this determination for both CCAA and bankruptcy purposes.
Full receiver appointed over power generation companies due to significant defaults and lack of interim funding.
The applicant sought the appointment of a full receiver over the properties and assets of the respondent power generation companies following significant monetary and operational defaults under loan agreements.
The respondents opposed a full receivership, arguing they had secured alternative financing, but consented to continuing an interim receivership.
The court found the proposed financing commitment highly conditional and uncertain, and noted the respondents' lack of interim funding, disarray in management, and risk to employees and operations.
Concluding it was just and convenient to protect the applicant's security, the court granted the application and appointed a full receiver.
