The Bixi Matter: The Postponement Of An Equity Claim Based On A Secured Loan Declared Null

In its March 20, 2023 ruling Syndic de Société de vélo en libre-service, 2023 QCCA 368, the Québec Court of Appeal addressed the trustee's review of a proof of claim submitted under the Bankruptcy and Insolvency Act (BIA), asserting a claim for restitution arising from a secured loan previously declared null by the courts. In addition to ruling that the nullity of the transaction did not relieve the trustee of its duty to consider the circumstances of the transaction, the Court of Appeal postponed the claim on the basis that it is in fact an equity claim and ruled that a claim arising from a transaction entered into in violation of a law of public order can be postponed by the trustee under subsection 137(1) BIA.