True Lessors, The CCAA And Allocation Of Administrative Expenses

In Atlantica Diversified Transportation Systems Inc. (Re), 2018 NSSC 77, the Supreme Court of Nova Scotia considered whether a true lessor is exempt from payment of expenses covered by an administration charge in Companies' Creditors Arrangement Act ("CCAA") proceedings. A determining factor on a claim for exemption is whether the lessor received a benefit – actual or potential – from the CCAA proceeding. The court found that while a true lessor may be generally exempt from an allocation of the administration charge, the receipt of such a benefit, however modest, can lead to the lessor being allocated a portion of administration charge for the benefit they received from the CCAA proceeding.