Regulatory Exception To The Stay Of Proceedings

The model Initial Order under the Companies' Creditors Arrangement Act (the "CCAA"), pursuant to section 11.02 of the CCAA, provides a stay of proceedings preventing any proceedings or enforcement processes to be commenced or continued against the applicant entity and staying and suspending any proceedings currently underway.

The CCAA sets out certain exceptions to this stay of proceedings, including in section 11.1(2), which provides that a stay of proceedings does not affect a regulatory body's investigation in respect of a debtor company or an action, suit or proceeding that is taken in respect of the debtor company by the regulatory body – other than the enforcement of a payment ordered by the regulatory body or the court. Section 11.1(3) sets out that the Court may order that subsection (2) does not apply in certain circumstances, allowing the enforcement of a payment even in the face of a stay of proceedings.