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Extraordinary first day relief, EFC guidance, good faith and more: Notable themes in CCAA restructurings

Author(s): Marc Wasserman, Jacqueline Code, Kathryn Esaw

Dec 13, 2021

Due to a number of factors, including the extent of available capital in the markets and the continued backstop provided by government programs designed to blunt the economic effects of the pandemic, 2021 was not the apocalypse many were predicting. Nevertheless, Canadian restructuring professionals and courts continued to confront and overcome issues in a number of important areas, including extraordinary first day relief, good faith and lack thereof, eligible financial contracts and liquidating Companies’ Creditors Arrangements Act (CCAA) proceedings. We have distilled these notable themes in restructuring law into key takeaways for anyone dealing with a distressed Canadian company – whether as the company, a lender or other stakeholder.

Just Energy: Tailored relief for unusual circumstances

The CCAA filing of the Just Energy Group in early 2021 showed that a CCAA court can grant extraordinary relief that takes effect during the first 10 days of a filing where the specific and unique circumstances faced by the debtor justify it. Osler acts for Just Energy...