Parliament Passes Amendments to Insolvency Legislation

Bill C-55 Awaits Proclamation and Possible Changes

On November 25, federal legislation was passed that, when proclaimed into force, will make significant amendments to the Bankruptcy and Insolvency Act (BIA) and the Companies’ Creditors Arrangement Act (CCAA), and create a new Wage Earner Protection Program Act. The legislation will have a significant impact on bankruptcies, receiverships, proposals and restructurings, particularly by making certain income trusts subject to the BIA and CCAA, enacting employee pension and wage protection, and authorizing some existing practices in commercial insolvencies. With a federal election about to be called, the bill was expedited through Parliament but the date on which the bill will be proclaimed into force has yet to be determined. In an unusual move, the government has committed, at the request of the Standing Senate Committee on Banking, Trade and Commerce (Senate Committee), not to have the legislation proclaimed into force before June