Fasken 2023 Insolvency Insights

Case Trends

We've seen an uptick in corporate insolvency filings and creditor-driven CCAAs (Companies' Creditors Arrangement Act), followed by a corresponding increase in interesting developments in insolvency law. There has been an overall trend towards prioritizing environmental obligations. Reverse Vesting Orders continue to be sought, with Canadian courts cautioning that they remain extraordinary relief. In 2023, the BC and Ontario courts each rejected such applications, although later approved slightly modified versions in each case. In the fall, the Quebec Court of Appeal issued its ruling in the Chronometriq matter, recognizing a court's power to grant interim financing charges priority over CRA's deemed trust claim in proposal proceedings under the Bankruptcy and Insolvency Act. A summary of these cases, as well as other interesting insolvency cases identified by Fasken's National Insolvency & Restructuring Group is below.