Whether you’re a general contractor, a subcontractor, or a supplier, this decision regarding the application of the Builders’ Lien Act is important for your business.
In this case, the Newfoundland & Labrador Court of Appeal considered whether a receiver is conflicted if it previously assisted the debtor in financial restructuring efforts.
Gray Aqua Group of Companies, Re is a case from New Brunswick that dealt with the remedy of substantive consolidation under the Bankruptcy and Insolvency Act (BIA). Historically, courts have shown reluctance in granting consolidation and it was seen as an extraordinary remedy.
Courts and lawmakers often refer to Canada Revenue Agency (“CRA”) as an involuntary creditor when businesses fail to make required tax payments to the governmental authority. The timely collection of taxes and payroll deductions also plays a fundamental role in the financing of government.