Bill C-97 (the “Bill”) was
introduced in Parliament to implement the federal budget tabled by
the Liberal government on March 19, 2019. The Bill includes
proposed changes to the Canada Business Corporations Act
(“CBCA”), the Bankruptcy and
Insolvency Act (“BIA”) and the
Companies Creditors’ Arrangements Act
(“CCAA”). One of the reasons for the
proposed changes is to make insolvency proceedings more fair,
transparent and accessible for workers and pensioners.1 Changes targeted to that issue, and other
proposed changes may have a noticeable impact on Canadian corporate
and insolvency law if passed.2
With respect to the CCAA, the Bill would reduce the length of
the initial stay of proceedings for companies that seek protection
under that restructuring statute. The Bill would also limit
the scope of relief that companies could obtain at the outset of a
CCAA proceeding, and would impose a duty of good faith on all
participants in Court-supervised insolvency cases.
