A group of Sears Canada Inc. pensioners will ask the Ontario Superior Court of Justice on Thursday to appoint a litigation trustee to review certain actions leading up to the company’s restructuring proceedings in 2017. According to a notice of motion filed on Feb. 9, 2018, former Ontario Superior Court justice Frank Newbould, the group’s proposed trustee, would review, among other […]
One of the more significant changes contained in the reform of Ontario’s pension system is the elimination, effective July 1, 2012, of partial windups. This is good news for employers, who will no longer need to worry that a business reorganization or downsizing could trigger a partial plan windup —along with all of its associated […]
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 […]
The Office of the Superintendent of Financial Institutions has updated its frequently asked questions regarding letters of credit.
At first glance, it might be hard to see how an ancillary benefit like a pension can drive a company into bankruptcy; however, it can be a major risk in today’s business environment.
American Airlines has announced it will seek bankruptcy court approval to terminate its DB pension plans and switch to a 401(k) plan. The airline will also seek to discontinue subsidizing future retiree medical coverage for current employees, but will offer access to these plans if employees choose to pay for them.
Sponsors of DB pension plans with Ontario members will see their assessments under the Pension Benefits Guarantee Fund (PBGF) rise dramatically.
According to many commentators, the Indalex case turns accepted law on the priority of debtor-in-possession (DIP) and working capital security on its head, and introduces new concerns for employers about how to properly discharge their sometimes conflicting duties under corporate and pension law.
New Democrat Pension Critic Wayne Marston reintroduced legislation today to put pensioners ahead of creditors when their former employers go bankrupt. The proposed Pension Protection Act would move pensioners to the front of the line of creditors to be paid out during bankruptcy or restructuring proceedings. Pensions are earned, explains Marston, and should be recognized […]
The United Steelworkers (USW) union has won a landmark legal decision forcing an insolvent corporation to honour pension obligations to employees. The Court of Appeal for Ontario ruled that Indalex Ltd. did not fulfill its fiduciary duties to employees—which include members of United Steelworkers—when the company filed for protection from creditors under the Companies’ Creditors […]