May 3, 2012
By Julius Melnitzer, Legal Post
Osler’s recent Update on White Birch was highlighted today on the Legal Post’s blog…
The Quebec Superior Court has held that the Ontario Court of Appeal’s ruling in Re Indalex Limited does not apply in Quebec.
Indalex caused a serious stir in the financial community after the OCA held that the amount a CCAA debtor was required to contribute towards its pension plan wind up deficiency had to be paid in priority to amounts owing to Indalex’ parent company, which was the principal secured creditor.
The ruling in Re White Birch Paper Holding Co. focuses on the fact that Quebec law does not recognize a constructive trust, which was a key driver of the Indalex ruling.
The Supreme Court of Canada has granted leave in Indalex and will hear the appeal on June 5, 2012.
Martin Desrosiers, Sandra Abitan and Julien Morissette of Osler, Hoskin & Harcourt have more online, here.