Category Archives: Creditors’ Remedies

A Case for Reform: The Law of Fraudulent Preferences and Conveyances

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Case Commented On: 1007374 Alberta Ltd v Ruggieri, 2013 ABQB 420

The case of 1007374 Alberta Ltd v Ruggieri, 2013 ABQB 420, is not significant in and of itself, but rather because it highlights some (but not all) of the shortcomings of the current state of the law regarding fraudulent preferences and conveyances. This is an area of law that has been described as “notoriously antiquated and long overdue for reform” (see Tamara M. Buckwold’s article: “Reforming the Law of Fraudulent Conveyances and Fraudulent Preferences” (2012) 52 Canadian Business Law Journal 333, at 333).

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Ride the Coattails –Yahoo!

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Case considered: Toronto Dominion Bank v Letendre, 2012 ABQB 323 rev’g 2012 ABQB 369.

This was a competition for the surplus funds paid into court in a mortgage foreclosure action.The case examined policy and operational aspects of the two year limitation in section 3(1) of the Limitations Act, RSA 2000, c L-12 (“Act”).

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Restructuring under the CCAA: Should A Debtor Always Be Allowed to Proceed?

Case considered: Budget Waste Inc., Re, 2009 ABQB 752.

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LoVecchio J.’s decision in Budget Waste Inc., Re (“Budget Waste“) is a great example of the questions courts need to keep in mind as they are deciding on issues that arise in the context of restructuring proceedings under the Companies’ Creditors Arrangement Act, R.S.C. 1985, c. C-36 (“CCAA“).

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Classifying Creditors under the Companies’ Creditors Arrangement Act

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.

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