Canadian Marine Bankruptcy
- November 20, 2018
- David Colford
For corporate debtors in most industries, Canadian bankruptcy law is simple – either seek reorganization under the Company Creditors Arrangement Act or file for formal bankruptcy by making a proposal to creditors. Once protection is granted and a Monitor or Trustee is formally appointed, all legal action is stayed and all future legal action prohibited, without special permission from the Superior Court exercising its Bankruptcy jurisdiction. Even secured creditors are put on notice and the exercise of their rights to foreclose on their security might be either constrained or delayed.
In the marine industry, there is an additional factor, being the Federal Court exercising its jurisdiction through the administration of Canadian Maritime Law, which may have an impact on the Monitor’s or Trustee’s administration of the bankruptcy.