Supreme Court Reverses the Indalex Decision
In the most keenly awaited commercial decision of recent years, the Supreme Court of Canada this morning held that the Ontario Court of Appeal in Indalex Limited (Re), 2011 ONCA 265 (CanLII) was mistaken in stating that deemed trust provisions to contributions to an underfunded pension scheme trumped the interests of a Debtor in Possession lender.
The central issue involved what priority would be given to pension plan wind-up deficits, particularly in insolvency proceedings involving the plan sponsor. Indalex Limited, and its related companies went into the tank. They obtained protection under the Companies’ Creditors Arrangement Act, . . . [more]
