Bankruptcy and Insolvency

Extraordinary Times Justify Extraordinary Remedies: Interim Measures under the AIPN Standard Form Operating Agreement

On April 9, 2009

Cases Considered: BG International Limited v. Canadian Superior Energy Inc., 2009 ABCA 127; BG International Limited v. Canadian Superior Energy Inc., 2009 ABCA 73 (Justice Carole Conrad, chambers)

PDF Version: Extraordinary times justify extraordinary remedies: interim measures under the AIPN standard form operating agreement

This is the first Alberta and indeed Canadian decision to consider the standard form operating agreement of the Association of International Petroleum Negotiators (AIPN) (2002). The Court of Appeal has upheld the order of Justice Barbara Romaine [unreported, February 11, 2009] sitting in chambers to issue an interim receivership order with respect to Canadian Superior Energy Inc’s (CSEI) interest in an exploration property in the offshore area of Trinidad and Tobago. In the course of doing so the order effected a change of operatorship and provided significant interim relief to BG International (BGI) in order to preserve the jointly owned property and to ensure continued drilling and testing operations.

Co-Ownership is a Messy Business (Even with an Operating Agreement)

By Nigel Bankes

On February 15, 2009

In Bankruptcy and Insolvency, Oil & Gas, Property

Cases Considered: San Juan Resources Inc (Re) 2009 ABQB 55 (Registrar in Bankruptcy).

PDF Version: Co-ownership is a messy business (even with an operating agreement)

Co-ownership is a legal relationship for parties who are able to get along together. For those who cannot the court will order partition or sale under the Law of Property Act, R.S.A. 2000, c. L-7. But co-ownership is also the typical foundation for oil and gas operations in this province and elsewhere since oil and gas companies will typically be tenants in common (working interest owners) of their title documents (the freehold and Crown leases) on which their operations rely.

Bankruptcy and Student Loan Debts: An Ongoing Problem

By Jassmine Girgis

On July 22, 2008

In Bankruptcy and Insolvency

Cases Considered: Mainstreet Hair Salon 1992 Ltd. v. Schumaker, 2008 ABQB 363

PDF Version: Bankruptcy and Student Loan Debts: An Ongoing Problem

Many individuals would be unable to undertake post-secondary education without assistance in the form of student loans for tuition payments and living expenses. Last year, about 350,000 college and university students relied on federal student loans worth $1.9 billion (K. Pinchin, “Government Accused of Milking Student Loan Plan,” Globe and Mail, July 22, 2007). The fact remains, however, that many students are unable to repay the loan upon graduation, and even an assignment in bankruptcy fails to discharge the debt. This comment discusses the difficulty surrounding the student loan and bankruptcy issue and determines that an answer satisfactory to all sides has yet to be reached.

Classifying Creditors under the Companies’ Creditors Arrangement Act

By Jassmine Girgis

On June 19, 2008

In Bankruptcy and Insolvency, Corporate / Commercial, Creditors’ Remedies

Cases Considered: Kerr Interior Systems Ltd. (Re), 2008 ABQB 286

PDF Version: Classifying Creditors under the Companies’ Creditors Arrangement Act

In an application for an order to sanction a Plan of Arrangement (Plan), the Alberta Court of Queen’s Bench refused to allow the two protesting creditors to form their own class for the purpose of voting on the Plan in Kerr Interior Systems Ltd. (Re). For the purpose of this post, I will lay out the facts then focus on the principles underlying the classification of creditors under the Companies’ Creditors Arrangement Act, R.S.C. 1985, c. C-36 (CCAA). Pursuant to section 4 CCAA, different classes of unsecured creditors can be created, such that each class would have a separate vote on whether to approve a Plan. This case is one of the most recent to deal with the technical and difficult issue regarding the classification of creditors and Madam Justice M.B. Bielby provides a thorough discussion of the principles that need to be considered before a court will sanction a plan of arrangement.

Category: Bankruptcy and Insolvency

Extraordinary Times Justify Extraordinary Remedies: Interim Measures under the AIPN Standard Form Operating Agreement

Co-Ownership is a Messy Business (Even with an Operating Agreement)

Bankruptcy and Student Loan Debts: An Ongoing Problem

Classifying Creditors under the Companies’ Creditors Arrangement Act