Category Archives: Insolvency

What Are “Unrelated Assets” When It Comes to Environmental Reclamation Obligations? The Lending Industry Needs to Know

By: Jassmine Girgis

Case Commented On: Mantle Materials Group, Ltd v Travelers Capital Corp, 2023 ABCA 302 (CanLII)

PDF Version: What Are “Unrelated Assets” When It Comes to Environmental Reclamation Obligations? The Lending Industry Needs to Know

In recent years, the courts have seen many cases dealing with unfunded environmental reclamation obligations. Although these obligations have long raised issues, the Supreme Court of Canada’s decision in Orphan Well Association v Grant Thornton Ltd, 2019 SCC 5 (CanLII) (“Redwater”) commenced a new era for determining the priority for environmental end-of-life obligations in Canadian insolvencies (see my earlier post on Redwater, Lessons from Redwater: Disregard the AbitibiBowater Test and Legislate Super Priority for the Regulator). Continue reading →

Interpreting the Generalized Duty of Good Faith in Insolvency Proceedings

By: Jassmine Girgis

PDF Version: Interpreting the Generalized Duty of Good Faith in Insolvency Proceedings

Case Commented On: CWB Maxium Financial Inc v 2026998 Alberta Ltd, 2021 ABQB 137 (CanLII)

In CWB Maxium Financial Inc v 2026998 Alberta Ltd, 2021 ABQB 137 (CanLII), the court considered the duty of good faith in the Bankruptcy and Insolvency Act, RSC 1985, c B-3, s 4.2 [BIA], and the Personal Property Security Act, RSA 2000, c P-7, s 66(1) [PPSA], in relation to the plaintiff lenders seeking a final order of receivership against the defendant debtors. This post will focus on the duty in the context of insolvency. It will also comment on and contrast the equitable duty of fairness under the corporate oppression remedy. Continue reading →