Federal Court Addresses Maritime Lien Issues In OW Group Bankruptcy Proceedings

In a recent decision, the Federal Court of Appeal had occasion to consider a claim at the crossroads of bankruptcy and maritime law (ING Bank N.V. v. Canpotex Shipping Services Limited et al., 2017 FCA 47). Normally in Canada, bankruptcy cases are adjudicated in the superior courts of the respective provinces. This case was unusual because, although also a bankruptcy case, it fell under the Federal Court's jurisdiction over admiralty matters.

The case arose out of the bankruptcy of the OW Group, which was, prior to the bankruptcy, the world's largest supplier of marine bunker fuel. The OW Group collapsed following an accounting scandal, which ultimately sent it into receivership. This case is one of many hundreds of actions going on around the world involving the OW Group bankruptcy. Similar actions have been pursued by way of arbitration and at all levels of court, in places as far afield as England, the USA, Singapore, Chile and India. Many of these cases continue