The debtor company became insolvent and an interim receiver was appointed.
The receiver terminated all employees but continued operations to sell the business as a going concern.
The union sought to bring successor employer proceedings before the Ontario Labour Relations Board (OLRB).
The bankruptcy judge denied leave under the Bankruptcy and Insolvency Act (BIA).
On appeal, the Court of Appeal held that while s. 47(2) of the BIA does not authorize a bankruptcy court to determine successor employer status, s. 215 gives the court jurisdiction to deny leave to proceed before the OLRB based on bankruptcy considerations.
However, the bankruptcy judge erred by effectively determining the successor employer issue himself.
The appeal was allowed and the matter remitted to the bankruptcy court.
