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ARTICLE · 13 FEBRUARY 2013

Indalex – Priorities And Pension Deficiencies

Osler, Hoskin & Harcourt LLP
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The Supreme Court of Canada has recently released its highly anticipated decision in Indalex Limited.

CanadaInsolvency/Bankruptcy/Re-Structuring
Osler, Hoskin & Harcourt LLP
Osler, Hoskin & Harcourt LLP
Richard Borins
Richard Borins
Michael De Lellis
Michael De Lellis
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On Friday, February 1, 2013, the Supreme Court of Canada released its highly anticipated decision in Indalex Limited (Re).  The ruling stemmed from an appeal of an Ontario Court of Appeal decision that had created commercial uncertainty for financing transactions.  The primary issue for lenders was a priority dispute between a court ordered super-priority charge granted to a lender that had provided "debtor-in-possession" (DIP) financing under the Companies' Creditors Arrangement Act (Canada) (CCAA), and deemed trusts under the Ontario Pension Benefits Act (PBA), in respect of wind up deficits in defined benefit pension plans.

The Supreme Court of Canada decision included the following*:

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