26 LEXPERT
|
2019
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WWW.LEXPERT.CA
INSOLVENCY REGIME
IT'S BEEN CALLED a "bespoke solution" to insolvency proceed-
ings: Canada's Companies' Creditors Arrangement Act (CCAA)
or, indeed, "Canada's other insolvency
proceedings." Canadian insolvency lawyers
call it more flexible than other international
regimes, and more principles- rather than
rules-based, allowing for faster and more ef-
ficient outcomes.
"e Canadian Act [has] an important sec-
tion that says a judge can make any order that
he or she sees fit, [that] she thinks appropriate
in the circumstances," says Robert ornton
of ornton Grout Finnigan LLP in Toron-
to, a boutique firm practising exclusively in
the areas of litigation and restructuring.
By comparison, says ornton, the US
bankruptcy system "has developed over many
decades, and is now, I believe, thousands of
sections and subsections long, and if you can't
fit within a particular section or subsection, then the idea is that it
can't be done. e philosophy behind the two regimes are dramati-
PRACTITIONERS SAY
THE FLEXIBILITY AND
PRACTICALITY OF THE
COMPANIES' CREDITORS
ARRANGEMENT
ACT LEADS TO
FASTER AND MORE
EFFICIENT OUTCOMES
FOR INSOLVENCY
PROCEEDINGS
BY ELIZABETH RAYMER
Insolvency
Becomes
Customized
PHOTO:
SHUTTERSTOCK
