Banking, Bankruptcy & Insolvency
-
April 16, 2024
Budget 2024 tax initiatives to play a key role in Ottawa’s effort to boost housing, economy
In a sweeping 2024 budget that targets increased housing, lower living costs, small-business support and greater economic growth, Prime Minister Justin Trudeau’s Liberal government is also taking tax measures to help offset a projected $40 billion deficit for 2023-24 and a rising federal debt estimated to reach $1.37 trillion by 2029.
-
April 12, 2024
Court approves reverse vesting order sale of businesses in receivership despite Crown objections
The B.C. Supreme Court has approved the sale of two insolvent businesses through a reverse vesting order (RVO) to allow the buyer to acquire them free and clear of their liabilities, finding that the RVO structure left no stakeholder worse off than they would be otherwise.
-
April 11, 2024
Ottawa unveils affordability measures to aid ‘first-time’ homebuyers, mortgage-strapped owners
The Trudeau government is proposing measures aimed at assisting “first-time” buyers to save for a home as well as helping cash-strapped owners hang on to their mortgaged homes.
-
April 10, 2024
Ontario Court of Appeal orders borrower to pay $326,500 balance of lender fee despite failed loan
The Ontario Court of Appeal has ruled that a commercial developer must pay $326,500 in lender fees for a failed loan transaction, overturning a lower court decision that the lender was not entitled to the amount since it was payable under an unenforceable penalty clause.
-
April 05, 2024
SCC rules ‘fraud exception’ bars Canadian bank from making payment demanded under letter of credit
Elaborating on the “fraud exception” to a bank’s obligation to pay on demand under a letter of credit, the Supreme Court of Canada has affirmed 7-2 that a Canadian bank was required to refuse payment to a letter of credit beneficiary due to a third party’s fraudulent behaviour, which was also attributable to the beneficiary.
-
April 03, 2024
Federal Court: Unsecured creditors must pay deemed trust proceeds to Crown
An unsecured creditor who received proceeds from the sale of property subject to a deemed trust under the Income Tax Act (ITA) is required to pay those proceeds to the Crown, the Federal Court has found.
-
March 26, 2024
Small firms borrowing to refinance COVID loans, says business group
An estimated 23 per cent of small businesses in Canada have had to borrow money to refinance their Canada Emergency Business Account (CEBA) loans to maintain access to the forgivable portion, according to a survey by the Toronto-based Canadian Federation of Independent Business (CFIB).
-
March 22, 2024
Appeal court finds 'miscarriage of justice' in $2 million fraud case, orders new trial
The Ontario Court of Appeal has allowed an appeal in a case where the appellants claimed $2 million against the respondent for an alleged accounting fraud that involved deleting records of money owed and reversing who the money was owed to.
-
March 19, 2024
Equifax: business insolvencies, delinquencies rise as businesses face loan repayments, high costs
Canadian businesses face increasing financial pressure with interest payments on outstanding Canada Emergency Business Account (CEBA) loans, high interest rates and a slowdown in consumer spending contributing to a surge in business insolvencies, according to a release by Equifax Canada.
-
March 15, 2024
Supreme Court rules limited statutory rights of appeal do not preclude access to judicial review
In a 9-0 judgment supportive of litigants’ access to judicial review, the Supreme Court of Canada has ruled that a limited statutory right of appeal in a case does not preclude judicial review for matters not the subject of appeal, i.e. where there is an appeal right limited to questions of law, judicial review is available for questions of fact or mixed fact and law.