Leave To Appeal Granted In "Indalex"

The Supreme Court of Canada today granted leave to appeal in Indalex Limited (Re). This is an appeal from the Ontario Court of Appeal (2011 ONCA 265). Please see our Pension Pulse dated April 20, 2011, for a detailed summary of the decision of the Ontario Court of Appeal.

Indalex Limited and its U.S. parent sought protection from their creditors under the Companies Creditors Arrangement Act and under Chapter 11 of the U.S. Bankruptcy Code. The court authorized a loan under a debtor-in-possession credit agreement and gave the lenders a super-priority charge against Indalex' assets. Upon the sale of Indalex' assets, two groups of pension plan members argued that a portion of the proceeds should be reserved for payment of pension fund deficiencies.