Canada: Insolvency/Bankruptcy

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.

Section 38 of the Bankruptcy and Insolvency Act (BIA) gives creditors a powerful remedy when a trustee refuses to pursue claims that could benefit a bankrupt estate.

On a motion to approve a distribution order in Re: 1000156489 Ontario Inc., the Ontario Superior Court of Justice declined to exempt the Monitor from the provisions of certain tax legislation regarding the tax and withholding obligations of taxpayers' representatives on distributions.

Bien que les procédures d'insolvabilité de sociétés aient diminué en 2025 par rapport à 2024, les développements juridiques d'intérêt n'ont pas manqué.

The MLT Aikins insolvency and restructuring practice group carried out assignments in 2025 as counsel to debtor companies, lenders and court officers administering insolvency proceedings. Notable highlights are as follows.

Canada offers an array of options and tools that enable insolvent companies to restructure. Canadian insolvency legislation provides for flexibility, which fosters creativity and promotes...

Fraudulent conveyance occurs when someone transfers property or assets to another person to avoid paying debts.

The Chambers Insolvency 2025 Guide covers nearly 30 jurisdictions and offers an up-to-date overview of key insolvency laws and procedures.