On February 1, 2013, the Supreme Court of Canada released its
decision on what has come to be known simply as the Indalex case.
The Supreme Court gave a final determination on the priority given
to pension fund deficiencies, in the context of an insolvency.
Case Comment: Sun Indalex Finance, LLC v. United
Steelworkers, 2013 SCC 6
The Supreme Court of Canada's recent Indalex decision
sheds light on the ranking of creditors' and pensioners'
interests in the context of CCAA proceedings, and provides some
cautions to various classes of creditors of financially troubled
companies.
By the spring of 2009, rising commodity prices and the economic
recession had taken such a toll on the U.S. and Canadian branches
of Indalex (aluminum extrusions manufacturers) that these companies
were on the brink of bankruptcy. In light of their financial
circumstances the companies took steps in the United States and
Canada to restructure and protect their remaining assets. The
Canadian
