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 assembled some sample precedents from publicly available cases to provide you with additional materials in one convenient place.

Approval & Vesting Orders

In an insolvency proceeding, the receiver or court-appointed officer usually requires a sale and vesting order 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 the parties have negotiated a proposed plan, the debtor company or a creditor will ask the Court to order a meeting of creditors to formally vote on the plan. Usually, the debtor company will bring an application (after the creditors vote to accept the plan) for the Court to approve. 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 it represents. If the Court is satisfied the application relates to a foreign proceeding and the applicant is the foreign representative of that proceeding, the Court will issue an order recognizing the foreign proceeding.

Foreign Main Proceeding – Supplemental Orders

Where additional foreign orders require recognition or additional steps the Initial Recognition Order (Foreign Main Proceeding) did not cover, the Court will issue a Supplemental Order. The Court interprets the Supplemental Order in a manner complementary to the provisions of the Initial Recognition Order. If the two orders conflict, 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 Court issues the initial order. 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 the parties have negotiated a proposed plan, 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

Mareva orders, also known as freezing orders, are a form of pre-trial injunction that restrains a party in current or pending litigation from removing assets from the jurisdiction and/or dissipating those assets. The orders preserve the defendant’s assets until the Court can enforce judgment.

Anton Piller Orders

An Anton Piller order (or an order to Allow Entry and Search of Premises) is an extraordinary remedy the Court grants only in exceptional circumstances. It requires the respondent to give the applicant’s representatives access to its premises to inspect and remove documents and items the order specifies. Also known as a civil search warrant, an Anton Piller order’s primary purpose is to preserve evidence, and an independent supervising solicitor oversees the search.

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 Appointment Orders

Under section 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.