Summary
In a decision released last week, in addition to providing
useful guidance regarding the objectives of the Companies'
Creditors Arrangement Act (CCAA), the Supreme Court of Canada
(SCC) approved a litigation funding agreement in an insolvency
proceeding. The case could have significant implications for the
use of litigation funding in future cases.
Background
The case involves an ongoing proceeding under the CCAA by the
debtor companies, Bluberi Gaming Technologies Inc. and Bluberi
Group Inc. (collectively, "Bluberi"). In
the CCAA proceeding, Bluberi liquidated substantially all of its
assets, such that its only remaining asset was a claim against one
of its largest creditors, Callidus Capital.
