Bankruptcy and Insolvency
An employer's bankruptcy or insolvency can have a devastating impact on employees. The protection of employee wages, benefits, pensions and jobs in the context of insolvency engages a broad range of legislation and expertise concerning collective bargaining, labour law, employment standards and pension law, as well as the law of bankruptcy and insolvency itself. Insolvency cases can involve litigation before the Courts and administrative tribunals, as well as complex, multi-party negotiations with court-appointed monitors or trustees, other creditors, the employer, boards of directors and potential buyers or outside sources of financing.
Our bankruptcy and insolvency services include:
- advice and representation in proceedings under the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act;
- representation in interactions with bankruptcy trustees and court appointed monitors;
- representation in labour arbitration, labour board or other administrative tribunal and court proceedings affected by a bankruptcy and insolvency proceeding;
- the preparation of proofs of claim and advice and assistance concerning the Wage Earner Protection Program;
- negotiation of restructuring proposals and restructuring agreements; and
- negotiation of collective agreements in a restructuring context.
Our lawyers have advised and represented the interests of employees and unions in a wide range of bankruptcy, insolvency and restructuring proceedings, including:
- the bankruptcy of the Royal Crest Lifecare Group Inc., on behalf of the Ontario Nurses' Association;
- the restructuring of Air Canada, on behalf of the International Association of Machinists and Aerospace Workers;
- the bankruptcy of Aveos Fleet Performance Inc., on behalf of the International Association of Machinists and Aerospace Workers; and
- the recent restructuring of Stelco Inc., on behalf of United Steelworkers, Local 1005.