October 3, 2014

Don't pin your hopes on claims bar expiry

Monique Jilesens article appears in the October 3, 2014 issue of Lawyers Weekly published by LexisNexis Canada Inc.

"Until an appeal court says otherwise, directors and officers and their insurers can't count on the expiry of a claims bar date in a liquidating Companies' Creditors Arrangement Act (CCAA) where no Plan of Compromise is contemplated.

Timminco Ltd. (Re) [2014] O.J. No. 3270 is the latest decision dealing with the insolvency of Timminco Ltd. and related class action litigation. As is customary in CCAA proceedings, a stay of proceedings and a claims procedure order were issued in Timminco, which applied not only to the company, but also its directors and officers..."