What is the test for a CCAA plan of reorganization?

Ontario, Canada


The following excerpt is from Noma Co. (Bankruptcy), Re, 2004 CanLII 45450 (ON SC):

At p. 124 the court stated that once the creditors, the company and the court have agreed to the plan of reorganization, the company must be able to carry on business free of the burden of the creditors’ claims except as the creditors have agreed to in approving the plan. In obtaining the creditors’ agreement, the creditors will have agreed to compromise their claims. It would be unfair to them if a dissident or absent creditor cold remain outside the plan and assert its full claim. The purpose of the CCAA is to avoid such a result. Those who participate in CCAA proceedings must be assured that there are no other creditors waiting outside the process for a mistake to be made of which they can take advantage or that an oversight or inadvertence in complying with court orders, will result in some claims remaining outside the system. The certainty of court orders must be assured. See Lindsay v. Transtec at pp. 125 and 129.

Other Questions


Does an employee who retains his or her employment following a sale or reorganization have to rely on his and her employment history with the previous owner as a factor in the calculation of reasonable notice? (Ontario, Canada)
Can an employer reorganize their workforce? (Ontario, Canada)
What is the scope of the court's authority in a variation proceeding? (Ontario, Canada)
In a non-Hague Convention case, what is the test for a stay of a return order where the parties' best interests of the child are compromised by postponing the determination of the children’s best interests in the country where they are habitually resident? (Ontario, Canada)
What is the effect of ageing on a separation order? (Ontario, Canada)
What is the inferential gap that prevents an inference of the applicant’s conduct from being reasonably capable of being drawn here? (Ontario, Canada)
What is the test for setting aside spousal support under the Divorce Act? (Ontario, Canada)
What jurisdiction does an arbitrator have over conditions of employment? (Ontario, Canada)
In what circumstances will the court take a hard look at the statute or contract relating to the individual? (Ontario, Canada)
Can a plaintiff’s opinion or opinion be expunged from the documents being produced? (Ontario, Canada)
X



Alexi white


"The most advanced legal research software ever built."

Trusted by top litigators from across North America.