Equity Claims Relief Granted As Part Of CBCA Restructuring

On June 26, 2018, Regional Senior Justice Morawetz of the Ontario Superior Court of Justice granted an order approving a plan of arrangement under the Canada Business Corporations Act ("CBCA"), in respect of Concordia International Corp. and Concordia Healthcare (Canada) Limited (collectively, "Concordia").² The Concordia plan of arrangement, and the order approving it under subsection 192(4) of the CBCA, contained provisions which, in effect, limited recovery on equity claims embodied in class action proceedings which were extant to available insurance proceeds, and released all other equity claims against Concordia. Such provisions, while common in plans of arrangement under the Companies Creditors' Arrangement Act ("CCAA"), had not previously been implemented within a CBCA plan of arrangement. The Concordia decision represents an example of the flexible use of the CBCA plan of arrangement provisions to implement balance sheet restructurings that would otherwise need