Share on LinkedInShare on LinkedIn

ARTICLE · 29 MARCH 2012

Creditor Or Regulator? Nortel, The MOE And Environment V Insolvency

Siskinds LLP
Explore more from Siskinds LLP

"Insolvency statutes such as the Canadian Creditors Arrangement Act and the Bankruptcy and Insolvency Act do not mesh very well with environmental legislation".

CanadaEnvironment
Author LinkedIn connections

"Insolvency statutes such as the Canadian Creditors Arrangement Act and the Bankruptcy and Insolvency Act do not mesh very well with environmental legislation". Across the country, courts are grappling with the messy conflicts between insolvency law and environmental statutes. Can provincial environmental ministries use their regulatory powers to force the funds of insolvent organizations to be spent on environmental cleanups, in priority to the claims of creditors, pensioners, employees, and others?

In Re Nortel, the Ontario Ministry of the Environment proposed to use Directors' Orders to force Nortel to spend at least $18 million on investigating and remediating chlorinated solvent contamination on properties long since sold, and no longer used by Nortel. In at least one case, the contamination predated Nortel's original acquisition of the property.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Amendments Streamline Project List Under Impact Assessment Act

The Government of Canada has amended regulations under the Impact Assessment Act to streamline environmental reviews for major infrastructure projects, particularly interprovincial pipelines. These changes shift regulatory responsibility for certain energy projects to the Canada Energy Regulator while removing other project types from federal review following the Supreme Court's 2024 constitutional ruling.
CanadaEnvironment
MLT Aikins LLP
MLT Aikins LLP
Article

Federal Government Removes Certain Energy Projects From The Impact Assessment Act Project List

The Canadian government has removed seven types of energy projects from federal impact assessment requirements, shifting review responsibilities to the Canada Energy Regulator and provincial processes. This regulatory change affects pipelines, electrical transmission lines, oil sands facilities, and power plants, fundamentally altering how major energy infrastructure projects will be evaluated and approved across Canada.
CanadaEnvironment
McCarthy Tétrault
McCarthy Tétrault
Article

Ontario Invites Expressions Of Interest For Licences Under The Geologic Carbon Storage Act

Ontario has launched its first call for expressions of interest in carbon capture and storage licences under the new Geologic Carbon Storage Act, targeting Crown-owned pore space beneath lakebeds surrounding the Ontario Peninsula. The detailed submission requirements reveal expectations that proponents have advanced well beyond initial planning stages, with the process serving as a critical test of Ontario's emerging CCS framework and its attractiveness to industry.
CanadaEnvironment
Torys
Torys
Article

Canadian Product Stewardship And EPR: 2026 Summer Update

Canadian governments and producer-responsibility organizations are refining extended producer responsibility programs across the country, affecting packaging, batteries, electronics, and hazardous products. Recent regulatory changes include expanded collection obligations, adjusted compliance timelines, and new enforcement measures, with significant developments in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, and Atlantic provinces.
CanadaEnvironment
Gowling WLG
Gowling WLG
Article

Changing Lanes: Canada Proposes To Replace Its ZEV Sales Mandate With Technology-neutral Emission Standards

Canada is proposing to eliminate its federal zero-emission vehicle sales mandate and replace it with technology-neutral greenhouse gas emission standards. The shift comes amid declining EV sales, affordability concerns, and trade uncertainty with the United States, raising questions about how the automotive industry will balance climate goals with market realities. What will this regulatory transformation mean for manufacturers, consumers, and Canada's electrification timeline?
CanadaEnvironment
McCarthy Tétrault
McCarthy Tétrault
Article

Changes To Fisheries Act Authorizations Regulations Streamline Application Process

On October 15, 2026, amendments to Canada's Fisheries Act Authorizations Regulations will streamline the application process for projects affecting fish and fish habitat. How will the new risk-based approach to offsetting requirements, deferred financial guarantees, and expanded ministerial powers reshape regulatory compliance for proponents navigating federal environmental approvals?
CanadaEnvironment
McMillan LLP
McMillan LLP
Article

Attorney General Of Canada Fails To Land Knockout Punch Against Application On Climate Change (Maltais v. Minister Of Environment)

Although there is debate about whether the world is suffering from climate change, according to a 2024 United Nations survey, 80 percent of people worldwide want their country to do more about it. Based on measurements of the world’s glaciers, there is certainly scientific evidence that they have receded each year for the past 37 years and that they are melting faster than ever.
CanadaEnvironment
Gardiner Roberts LLP
Gardiner Roberts LLP
Article

Tariffs, Terminations And EI: Implications Of Canada’s New Support Package For Employers

Canada's federal government has announced a $3.5 billion rapid response support package in anticipation of retaliatory tariffs against the United States, introducing new temporary employment insurance measures and workforce retention programs. The package extends EI benefits, waives waiting periods, and creates funding opportunities for employers to retain and retrain workers rather than implement large-scale layoffs.
CanadaEmployment and HR
Siskinds LLP
Siskinds LLP
Article

Ontario Court Certifies Proposed Class Action Against Hatts Off Inc.

The Ontario Superior Court of Justice has certified a proposed class action against Hatts Off Inc., alleging systemic abuse, neglect and misconduct at youth group homes and foster placements across Ontario spanning nearly four decades. With approximately 180 individuals already identified as potential class members, this certification decision allows the case to proceed on common issues affecting all proposed class members, though the allegations remain unproven and liability is denied by the defendants.
CanadaLitigation, Mediation & Arbitration
Siskinds LLP
Siskinds LLP