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Precedents

Explore sample precedents for the most commonly-granted Orders on the Commercial List.

In this section, Lenczner Slaght has not only provided links to the Model Orders, but has also assembled some sample precedents from publicly-available cases to provide you with additional materials in one convenient place.

Approval and Vesting Orders

In an insolvency proceeding, a sale and vesting order is usually required by the receiver or court-appointed officer to approve the sale of assets and vest title of those assets in the purchaser free of claims and encumbrances.

Companies' Creditors Arrangement Act Initial Orders

To commence proceedings under the CCAA, a company makes an initial application to the Court and the Court will issue an “initial order”. The initial order typically includes: the stay of proceedings, which gives the company 30 days' protection from its creditors; a provision of "debtor-in-possession" financing, which allows the company to operate while under CCAA protection; and the priority of this financing over existing debts of the company, allowances and prohibitions in respect to payments during the ordinary course of business.

Final Orders – Plan of Arrangement

A Plan of Compromise or Arrangement is a proposal the company presents to its creditors on how it intends to deal with the issues facing the company. Once a proposed Plan has been negotiated by the parties, the debtor company or a creditor will ask the Court to order a meeting of creditors to formally vote on the Plan. Usually, an application will be brought by the debtor company (after the vote by creditors to accept the Plan) for the Court to approve it. If the Court decides to sanction the Plan, it will issue a final order for the Plan of Arrangement.

Foreign Main Proceeding – Initial Recognition Orders

In cross-border insolvency matters, a foreign representative may apply to the court for recognition of the foreign proceeding in respect of which it is a foreign representative. If the court is satisfied that the application for the recognition of a foreign proceeding relates to a foreign proceeding and the applicant is a foreign representative in respect of that foreign proceeding, the court makes an order recognizing the foreign proceeding.

Foreign Main Proceeding – Supplemental Orders

Where additional foreign orders need to be recognized or additional steps need to be taken that have not been covered in the Initial Recognition Order (Foreign Main Proceeding), the court will issue a Supplemental Order to be interpreted in a manner complementary to the provisions of the Initial Recognition Order. In the event of a conflict between the provisions of the Supplemental Order and the Initial Recognition Order, the provisions of the Initial Recognition Order are paramount.

Interim Orders – Plan of Arrangement

In insolvency proceedings, the debtor company typically begins negotiating with its creditors and stakeholders immediately after the initial order is issued. A Plan of Compromise or Arrangement is a proposal the company presents to its creditors on how it intends to deal with the issues facing the company. Once a proposed Plan has been negotiated by the parties, the debtor company or a creditor will ask the Court to order a meeting of creditors to formally vote on the Plan. If the Court sanctions this meeting, it will issue an Interim Order for the Plan of Arrangement setting out the details and format of the meeting of creditors.

Mareva Orders

Also known as a freezing order, a Mareva order is a pre-trial injunction that restrains a party in current or pending litigation from removing assets from the jurisdiction and/or dissipating those assets. Its purpose is to preserve the defendant's assets until judgment can be enforced.

Anton Piller Orders

An Anton Piller order (or an order to Allow Entry and Search of Premises) is an extraordinary remedy only granted in exceptional circumstance, and requires the respondent to give the applicant's representatives access to its premises to inspect and remove documents and items specified in the order. An Anton Piller is also known as a civil search warrant and its primary purpose is to preserve evidence, with the search conducted under the supervision of an independent supervising solicitor.


Receiver Discharge Orders

Once the receiver presents its final report and statement of accounts, the Court will issue a receiver discharge order, approving the receiver’s report, discharging the receiver of the undertaking, property and assets of the Debtor and releasing the receiver permanently from any liability, relating to matters that were, or could have been, raised in the proceedings (except for any gross negligence or willful misconduct on the Receiver's part).

Receivership Orders

Under s. 243(1) of the Bankruptcy and Insolvency Act, a secured creditor may file an application before the Court for appointing a receiver to take possession of all or substantially all of the inventory, accounts receivable or other property of an insolvent person or bankrupt that was acquired for or used in relation to a business carried on by the insolvent person or bankrupt; exercise any control that the court considers advisable over that property and over the insolvent person’s or bankrupt’s business; or take any other action that the court considers appropriate.