In the news
February 7, 2013
D.J. Miller is interviewed and quoted extensively regarding the Supreme Court of Canada’s decision in Indalex Ltd. in Jeff Gray’s article “Lenders Dealt Blow in Pension Decision” in the February 7, 2013 edition of The Globe and Mail.
“This part of the ruling means lenders to thousands of companies with large defined-benefit pension plans just saw themselves pushed back in the line of creditors, behind potentially massive pension shortfalls, said D.J. Miller, an insolvency lawyer with Thornton Grout Finnigan in Toronto.
“All of those lenders that have money advanced right now, thinking they are in first position on inventories and accounts receivable, are sitting behind what can be a deficit that can be in the tens or hundreds of millions of dollars,” said Ms. Miller, who acted for the Insolvency Institute of Canada, which intervened in the case before the Supreme Court.
Plans that could be close to being wound up, or plans that have large shortfalls, will attract special attention, she said: “I think all of the lenders right now are doing a very careful assessment of their portfolios to determine what their potential exposure is.”
She warned that lenders might require extra guarantees and higher rates from companies with big pension plans. Other creditors might be tempted to push a company right into full-blown bankruptcy, which would nullify the pensioners’ new rights.”
Read the full story “Lenders Dealt Blow in Pension Decision” by Jeff Gray, The Globe and Mail, February 7, 2013 by clicking here.