The first was for and extension of an additional two months, and the second for approval of additional secured DIP financing in the amount of
The first was for and extension of an additional two months, and the second for approval of additional secured DIP financing in the amount of $1,400,000.00.
On appeal, the Honourable Justice Rouleau wrote for a unanimous panel of the Court and dismissed the appeal.
The Court held that the pari passu principle, which requires unsecured creditors to be treated as a single class and receive equal treatment, is a fundamental tenet of insolvency law.
Among other things, the operators sought damages for negligent misrepresentation against the company, a declaration of an implied or constructive trust, and a declaration that directors and officers acted fraudulently.
The Decision Justice Dewar lifted the stay of proceedings to allow the operators to pursue their claim against the company as well as the directors and officers.
The operators had supplied grain to Puratone within two weeks of the CCAA filing.
The operators alleged that Puratone and its directors and officers must have been planning its CCAA filing well in advance of ordering the grain and therefore had no intention of paying for it.
Chapter 11 is a form of bankruptcy that involves a reorganization of a debtor's business affairs, debts and assets. As the most complex of all bankruptcy cases and generally the most expensive, a company should consider Chapter 11 reorganization only after careful analysis and exploration of all other alternatives. It takes between a few months and two years to complete a Chapter 11 bankruptcy case.
bankruptcy code 11, Chapter 11 is generally filed by corporations that require time to restructure their debts, and it gives the debtor a fresh start, subject to the debtor's fulfillment of his obligations under the plan of reorganization. Corporations, partnerships and limited liability companies (LLCs) usually file Chapter 11, but in rare cases, individuals with a lot of debt, who do not qualify for Chapter 7 or 13, may qualify for Chapter 11.
The Facts Puratone ran a commercial hog production business.
It sought protection under the CCAA and the initial order included standard stay provisions, including a stay of existing proceedings as well as further actions against the company without leave of the court.
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The first was for and extension of an additional two months, and the second for approval of additional secured DIP financing in the amount of $1,400,000.00.On appeal, the Honourable Justice Rouleau wrote for a unanimous panel of the Court and dismissed the appeal.The Court held that the pari passu principle, which requires unsecured creditors to be treated as a single class and receive equal treatment, is a fundamental tenet of insolvency law.Among other things, the operators sought damages for negligent misrepresentation against the company, a declaration of an implied or constructive trust, and a declaration that directors and officers acted fraudulently.The Decision Justice Dewar lifted the stay of proceedings to allow the operators to pursue their claim against the company as well as the directors and officers.The operators had supplied grain to Puratone within two weeks of the CCAA filing.The operators alleged that Puratone and its directors and officers must have been planning its CCAA filing well in advance of ordering the grain and therefore had no intention of paying for it.Chapter 11 is a form of bankruptcy that involves a reorganization of a debtor's business affairs, debts and assets. As the most complex of all bankruptcy cases and generally the most expensive, a company should consider Chapter 11 reorganization only after careful analysis and exploration of all other alternatives. It takes between a few months and two years to complete a Chapter 11 bankruptcy case. bankruptcy code 11, Chapter 11 is generally filed by corporations that require time to restructure their debts, and it gives the debtor a fresh start, subject to the debtor's fulfillment of his obligations under the plan of reorganization. Corporations, partnerships and limited liability companies (LLCs) usually file Chapter 11, but in rare cases, individuals with a lot of debt, who do not qualify for Chapter 7 or 13, may qualify for Chapter 11.The Facts Puratone ran a commercial hog production business.It sought protection under the CCAA and the initial order included standard stay provisions, including a stay of existing proceedings as well as further actions against the company without leave of the court.
,400,000.00.On appeal, the Honourable Justice Rouleau wrote for a unanimous panel of the Court and dismissed the appeal.The Court held that the pari passu principle, which requires unsecured creditors to be treated as a single class and receive equal treatment, is a fundamental tenet of insolvency law.Among other things, the operators sought damages for negligent misrepresentation against the company, a declaration of an implied or constructive trust, and a declaration that directors and officers acted fraudulently.The Decision Justice Dewar lifted the stay of proceedings to allow the operators to pursue their claim against the company as well as the directors and officers.The operators had supplied grain to Puratone within two weeks of the CCAA filing.The operators alleged that Puratone and its directors and officers must have been planning its CCAA filing well in advance of ordering the grain and therefore had no intention of paying for it.Chapter 11 is a form of bankruptcy that involves a reorganization of a debtor's business affairs, debts and assets. As the most complex of all bankruptcy cases and generally the most expensive, a company should consider Chapter 11 reorganization only after careful analysis and exploration of all other alternatives. It takes between a few months and two years to complete a Chapter 11 bankruptcy case. bankruptcy code 11, Chapter 11 is generally filed by corporations that require time to restructure their debts, and it gives the debtor a fresh start, subject to the debtor's fulfillment of his obligations under the plan of reorganization. Corporations, partnerships and limited liability companies (LLCs) usually file Chapter 11, but in rare cases, individuals with a lot of debt, who do not qualify for Chapter 7 or 13, may qualify for Chapter 11.The Facts Puratone ran a commercial hog production business.It sought protection under the CCAA and the initial order included standard stay provisions, including a stay of existing proceedings as well as further actions against the company without leave of the court.