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Are Suppliers Who Provide Post Filing Credit Adequately Protected in Canadian Insolvency Law and Practice?
Author(s): Dietrich, Jane, Dowdall, Dan
Date:  February 22 2008
Recently there have been instances where creditors who supplied goods and services to debtors following the commencement of a Companies’ Creditors Arrangement Act ("CCAA") proceeding have remained unpaid (or partially unpaid). The increase in filings under the CCAA as opposed to court appointed receiverships, has highlighted the inconsistent treatment of the priority given to payment of post filing creditors in the two regimes. In a CCAA, these post filing creditors have no priority, where as in a receivership, they would be protected by the receiver’s charge over the assets.

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