Quebec’s Superior Court has stated that Ontario’s recent Indalex ruling does not apply in Quebec.
The Re Indalex Limited case found that, in some cases, pension funding obligations can rank ahead of debtor-in-possession (DIP) security and security on working capital assets of the employer.
Quebec’s decision in Re White Birch Paper Holding Co. rests primarily on the fact that no equivalent to a constructive trust exists in Quebec law—a notion that was key in Indalex.
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