Timminco Motion: A New Twist In Insolvency V Environment

The insolvent metal processing company, Timminco, is attempting a new twist to "cleanse" creditors of environmental claims through insolvency law. They have applied to the Commercial List for permission to sell their valueless contaminated sites, for virtually nothing, to new subsidiaries, which will then immediately declare bankruptcy. The contaminated assets will thereby be transferred to the provincial government, freeing up more money for other creditors. Meanwhile, the environmental work urgently needed at the contaminated sites will be abandoned, unless taken over by the province.Among other things, the contaminated sites pose a threat to a nearby creek and the Ottawa River: