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ARTICLE · 27 NOVEMBER 2025

Use Of "Guillotine" Orders In CCAA Proceedings

McCarthy Tétrault
McCarthy Tétrault
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In Teal Jones Holdings Ltd. (Re), 2025 BCSC 2291, the Supreme Court of British Columbia recently granted what appears to be the first "guillotine" order issued in a Companies' Creditors Arrangement Act ("CCAA") proceeding.

CanadaInsolvency/Bankruptcy/Re-Structuring
Trevor Courtis
Trevor Courtis
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In Teal Jones Holdings Ltd. (Re), 2025 BCSC 2291, the Supreme Court of British Columbia recently granted what appears to be the first "guillotine" order issued in a Companies' Creditors Arrangement Act ("CCAA") proceeding. The Court required a losing bidder in a sale process that challenged the loss of its deposit to post security for costs and provided that its motion would automatically be deemed to be dismissed and the deposit could be distributed to creditors if it failed to do so by the deadline.

While a "guillotine" order may only available in rare circumstances, it is another tool that can potentially be used to facilitate the progress of insolvency proceedings.

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