34 | LEXPERT • June 2019 | www.lexpert.ca/usguide
If there's one thing that can be said about
cross-border insolvencies, it's that they're
frequently rife with friction.
"The practical reality is that both sides
of the border are there to make a profit,"
says David Bish, a lawyer in Torys LLP's
Toronto office. "There's a real tension
there on the ground."
This is especially so when it comes
to Insolvency.
"You get situations where Canadian
companies who have bricks and mortar
operations file in the US as part of a large
corporate group," he says. "That can raise
concerns for Canadian courts and insol-
vency professionals about the extent to
which Canadian interests have become
a second consideration in the American
backyard and the extent to which value is
being diverted to US shareholders."
Navigating
Cross-border
Insolvency
Insolvency
IT'S EASIER THAN IT
WAS, BUT DIFFERENCES
BETWEEN CANADA
AND THE US STILL
POSE CHALLENGES
BY JULIUS MELNITZER
PHOTO:
SHUTTERSTOCK
