Supreme Court of Canada to Render Indalex Decision on February 1, 2013
Date: January 29, 2013
The Supreme Court of Canada has announced that it will render its decision in Sun Indalex Finance, LLC et al. v. United Steelworkers et al. (“Indalex“) on Friday, February 1, 2013.
The appeal relates to a decision of the Court of Appeal for Ontario that granted “super-priority” to pension funding deficits in a Companies’ Creditors Arrangement Act proceeding. A detailed discussion of the Court of Appeal decision can be found in our FTR Now of April 15, 2011, “Ontario Court of Appeal Revisits Pension and Insolvency Principles: Indalex.”
The decision of the Supreme Court of Canada has been eagerly awaited by both insolvency and pension experts, who are hopeful that the Court will provide further clarity on the issues raised in Indalex, including the issue of how officers and directors are to manage the fiduciary duties owed to plan members along with the fiduciary duties owed to the corporation.
Hicks Morley’s Pension, Benefits and Executive Compensation group will be closely reviewing the Supreme Court of Canada decision and will be providing an analysis of the decision in an FTR Now.
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