"Century Services Inc. v. Canada (Attorney General)", Published by The International Who's Who of Insolvency & Restructuring Lawyers, July 2011
Date:
July 1 2011
In this publication, FMC's John Sandrelli and Owen James discuss the seminal case of Century Services Inc. v Canada (Attorney General), where by the Supreme Court of Canada for the first time, directly interpreted key provisions of the Companies’ Creditors Arrangement Act (the CCAA), Canada’s “statute of choice” for complex insolvencies and restructurings.
The judgment of Canada’s highest court is notable for the following reasons:
- it reconciled an apparent conflict between the CCAA and the Excise Tax Act (the ETA), which lower courts across Canada had previously interpreted as conferring a priority for goods and services taxes (GST) on the Crown in CCAA proceedings; and
- more importantly for insolvency practitioners, who are regularly required to seek the court’s assistance in resolving the novel and often complex challenges that arise in a CCAA restructuring, it addressed the scope of the court’s jurisdiction and discretion when supervising a CCAA reorganisation.
To read more, click here.