June 6, 2017

“Another Day”: Equitable Subordination in CCAA Proceedings

In 1992, Justice Iacobucci left the question of whether the equitable subordination doctrine should exist in Canadian law “open for another day.” With the Supreme Court of Canada’s (“SCC”) decision to grant leave to appeal on that issue from the Ontario Court of Appeal’s decision in U.S. Steel Canada Inc., Re, that day will soon arrive.

This essay, written by TGF articling student James Hardy, will argue that the SCC should follow the Ontario Court of Appeal in finding that equitable subordination is not available in proceedings under the Companies’ Creditors Arrangement Act (“CCAA”).

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