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ARTICLE · 20 DECEMBER 2012

Environmental Liability In A CCAA Proceeding

Borden Ladner Gervais LLP
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In Newfoundland and Labrador v. AbitibiBowater Inc., 2012 SCC 67, the Supreme Court of Canada was called upon to consider whether orders issued by a regulatory body with respect to environmental remediation work are "provable claims" in a proceeding commenced under the Companies’ Creditors Arrangement Act, R.S.C. 1985, c.C-36 (the "CCAA").

CanadaInsolvency/Bankruptcy/Re-Structuring
Geoffrey Thompson
Geoffrey Thompson
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In Newfoundland and Labrador v. AbitibiBowater Inc., 2012 SCC 67, the Supreme Court of Canada was called upon to consider whether orders issued by a regulatory body with respect to environmental remediation work are "provable claims" in a proceeding commenced under the Companies' Creditors Arrangement Act, R.S.C. 1985, c.C-36 (the "CCAA").

In its decision released on December 7, 2012, Deschamps J., writing for the majority of the Court, upheld the decision of Gascon J. of the Quebec Superior Court, sitting as a CCAA Court, which had characterized the environmental orders as "provable claims" in the insolvency proceeding. As a result, the claim was stayed by the Initial Order pronounced to commence the CCAA proceeding.

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