Recently, a number of retail enterprises have availed themselves
of the protection of the Bankruptcy and Insolvency Act
(BIA) and the Companies' Creditors Arrangement
Act (CCAA), Canada's insolvency statutes. The
BIA and CCAA, as federal statutes, have various provisions that
allow a debtor to deal with their leases in a manner which may be
inconsistent with the terms of the written lease agreement or
BC's Commercial Tenancy Act (CTA) and
wishes of the landlord.
A necessary component of any insolvency proceeding is an
evaluation of each business location, and any lease agreements
pertaining to it, to determine which, if any, should be retained,
disclaimed, or assigned, those being the three ways that a
commercial property lease can be dealt with under the provisions of
the BIA and CCAA. This article is intended to provide a brief
overview of how these options are implemented and what recourse, if
any, a landlord has upon receiving notice from an insolvent tenant,
or
