Canada: Insolvency/Bankruptcy/Re-Structuring

Several significant judicial decisions were released in 2025 that remain relevant to businesses, commercial lenders and restructuring professionals. This bulletin summarizes the key developments of 2025 and highlights areas of significance for restructuring professionals and market participants to monitor in 2026.

Canada's transfer pricing landscape has undergone a fundamental transformation with new rules taking effect in 2026, introducing substance-based tests and subjective comparisons that align with OECD Guidelines. How should multinational enterprises navigate these changes to ensure compliance while managing cross-border transactions involving goods, services, and intangible property within their corporate structures?

In National Bank of Canada v. Sunterra Food Corporation (2026 ABKB 206), the Alberta Court of King’s Bench declined to extend CCAA stay protection to West Market Square Inc.

Several significant judicial decisions were released in 2025 that remain relevant to businesses, commercial lenders and restructuring professionals. This bulletin summarizes the key developments of 2025 and highlights areas of significance for restructuring professionals and market participants to monitor in 2026.

In National Bank of Canada v. Sunterra Food Corporation (2026 ABKB 206), the Alberta Court of King’s Bench declined to extend CCAA stay protection to West Market Square Inc.

The Federal Court recently confirmed its lack of jurisdiction over bankruptcy trustee decisions regarding claim approvals or disallowals, clarifying that provincial superior courts hold exclusive authority over bankruptcy matters with only one narrow exception. An applicant's failure to file in the correct court resulted in cost awards due to wasted judicial resources.