Can a lender challenge debtors’ transactions with a parent company as fraudulent conveyances when the debtors had disclosed the transactions before the loan was advanced? In NYDIG ABL LLC v IE CA 3 Holdings Ltd
Continue Reading British Columbia’s Court of Appeal overturns ruling on invalidity of inter-company transfers from financially distressed Bitcoin mining companiesThe general rule in bankruptcy is that a debtor receives a “fresh start” and is discharged from prior debts, but this is subject to certain exceptions. Subsection 178(1) of the Bankruptcy and Insolvency Act (BIA) sets out eight
Continue Reading Supreme Court Clarifies Exceptions to Fresh Start Principle in Canadian Bankruptcies
Mareva orders, also known as freezing orders, may be granted when there is a risk that a defendant might move its assets out of reach of the court’s jurisdiction. Mareva orders can freeze assets owned
Continue Reading Creditors seeking enforcement of claims to a Mareva defendant must come with clean hands
In a decision released in 2023, Justice Vermette of the Ontario Superior Court rejected an application to set aside an arbitration award on procedural fairness and jurisdictional grounds. This decision clarified when Ontario’s International Commercial
Continue Reading Ontario Superior Court Rejects Application to Set Aside an Arbitration Award under the Model Law
In Ontario, as a general rule, partial indemnity, which ranges from approximately 40-60% of the actual costs incurred by a party, is awarded to the successful litigant. Full indemnity, which comprises 100% of the costs
Continue Reading Failure to make full and fair disclosure can result in a full indemnity costs
Can individuals take steps to make themselves ‘creditor proof’ against future creditors, even when there is no such creditor at the time? If there are sufficient “badges of fraud” present, the answer may be no.Continue Reading Fraudulent Conveyances Act – Future Creditors may challenge transfers
In a post last year, we discussed the decision of the British Columbia Court of Appeal in Poonian v. British Columbia (Securities Commission), 2022 BCCA 274 in which the British Columbia Court of Appeal
Continue Reading Update: SCC To Rule On Survival of Securities Sanctions in Bankruptcies
In Li et al. v. Barber et al., the Ontario Superior Court of Justice dismissed a motion by two “Freedom Convoy” organizers to release $200,000 of previously frozen funds needed to retain legal
Continue Reading Access Denied: Ontario Court Rejects “Freedom Convoy” Organizers’ Request to Access Frozen Funds for Legal Fees
A bankruptcy discharge releases the debtor from pre-bankruptcy debts or liabilities. The purpose is to give the debtor a “fresh start” from excessive debts that cannot be repaid, except in certain situations such as where the debt arises from deceitful or fraudulent conduct. In Poonian v. British Columbia (Securities Commission), the British Columbia Court of Appeal held that securities sanctions are excluded from bankruptcy discharge. This is significant because this decision diverges from other Canadian appellate decisions.
Continue Reading Securities Sanctions Survive Bankruptcy, British Columbia Court of Appeal Rules
Aiden Pleterski, the self-described “Crypto King“, and his company AP Private Equity Limited were petitioned into bankruptcy on August 9, 2022 on application by certain of their creditors. David Gadsden, Michael Nowina and Ben Sakamoto at Baker McKenzie act for the creditors who brought the bankruptcy applications.
Continue Reading “Crypto King” declared bankrupt