By: Bayley Wachsmuth
Case Commented On: Taiga Motors Corporation et Deloitte Restructuring Inc., 2024 QCCS 4319 (CanLII)
PDF Version: Taiga Insolvency Proceedings: Reverse Vesting Orders and Wage Earner Protection Program Claims
As of June 2025, hundreds of former Taiga Corporation (Taiga) employees continue to wait for severance, after having been let go more than one year ago (see here). Within the six months preceding their Companies Creditors’ Arrangement Act, RSC 1985, c C-36 (CCAA) application on July 10, 2024, Taiga began laying off its employees. During the CCAA proceedings, Taiga entered into a Reverse Vesting Order (RVO) to facilitate the sale of Taiga while preserving non-transferrable assets and avoiding a time-consuming vote by creditors (see here at para 17). Normally when a company lays off employees prior to entering CCAA Proceedings, the former employees can file a claim under the Wage Earners Protection Program Act, SC 2005, c 47 (WEPPA) to receive payment for eligible wages including severance pay (see recent ABlawg post here). However, when the former Taiga employees applied to WEPPA they were informed that due to the RVO the former employees were no longer eligible to claim under WEPPA.